The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1919-07-24
FINANCING COTTON FARMERS
OBJECT OF ASSOCIATION

Soiohoio y. ~. July ne
object of the American And South
Carolina Cotton Associationssis simp-
ly to see to it that henceforth capi-
tai shall be avilable for the financing
of cotton produced by the farmer and
thus to make the cotton truly respond
to the law of supply and demand in
stead of being controlled by what is
distress cotton thrown on a bad mar
ket because the owner is compelled
to sell Immediately, says a state
ment issued from the headquarters
of the South Carolina Cotton Asso-
citation today setting forth the pur-
poses of the organization. The state
ment declares that the association is
working for the economic freedom of
the South.
american citizens outside of the
cotton belt" says the statement"
should take a lively interest in these
moving rapidly forward toward COM
plte and permanent form, and look
| ing to the interests of the cotton pro-
| ducing states Of the nation. There is
| no reason why American citizens of
+ all parts of the country shouldn't feel
the most friendly interest in the sue
cess of this Southern organization.
Its ultimate success will react favor
ably upon all parts of the country.
"The primary step being taken by
the association looks to organization
of the cotton interest of the South
for mutual benefit. This does not
involve any animosity or hostility to-
wards cotton interests in other parts
of the nation. All who know the his
tory of cotton will readily admit that
cotton has enriched all who handled
it except the farmers who do the most
grinding and cXhausting toll in the
raising of the raw product. The rea-
son for this unreasonable state of
affairs in obvious. The farmers of
the South have never been sufficiently
organized to work in harmony for
their benefit. Since the war between
the States they have never had suf-
ficient capital available to enable
them to store their cotton and hold it
for fair price. Multitudes of poorer
cotton for whatever price it might
bring as soon as it could be gathered
from the field and ginned. The low
price, for which the poorer farmers
/ 10 hai ~
the price for the entire crop then
being offered on the market. Had it
been possible to finance the portion of
the crop for which immediate cash
was needed, fair price for the en-
tire crop could have been obtained
he object of the Cotton Association
is, simply to see to it that henceforth
capital shall be available for the fl
nancing of this portion of the crop,
and thus to make the cotton market
truly respond to the law of supply
and demand instead of being con-
trolled by what is distress cotton
thrown on bad market because the
owner is compelled to sell immed-
lately.
"The association by financing this
portion of the cotton crop will tend
to end one Of the abuses Of the cotton
exchange, the manipulation of
the the market by those
interested artificially depressing the
price of the cotton. When the produ-
Ger who needs cash for his cotton can
get this cash on easy terms while
holding his cotton in fire proof, in
sured, and weather proof warehouses,
he will simply refrain from selling
when the cotton exchange is artif-
cially manipulated SO as to drop the
price Of cotton below what the staple
should naturally bring as governed by
the demand and by the price Of manu-.
factured goods. The legitimate inter
ests of the cotton spinners of New
England will in no way suffer through
this interference with the activities
of the manipulation on the cotton ex
change. On the contrary the legiti
mate the New England spinners will
be furnished by stabilizing the cotton
market, which will save
the spinner from vio
lent fuctuation and so enable him tc
calculate accurately and purchase
stocks with some degree of certainty
as to further prices of the commodity
The prices quoted on the cotton ex-
| change will then become real indi.
Gators of the state Of the actual mar
ket as governed by supply and de-
mand.