The Snyder signal. (Snyder, Tex.) 1887-????, 1919-06-27
DAVIS DISCUSSES
COTTON MARKETING
Austin, June 20, 1919.

The time TOT harvesting anu
selling another crop is fast approach
ing. There have been some radical
changes In world conditions during
thep asst year, and Texas has placed
upon her statutes during this time
come laws which materially and ben
officially effect the handling of cot
ton.
Before the war, we were selling
cotton on an average for about IL
cents and sold II as fast as gathered
II taxed the financial ability OF the
spinners and buyers OF foreign coun-
tries to buy years supply while we
gathered the crop. 1t taxed the ships
of the world to their capacity to haui
IL as fast as we gathered II. The war
has greatly lessened the ability OF
the SINNERS and buyers in foreign
countries to buy and pay cash. They
could not buy years supply while
we are gathering the crop as In the
past. even at IL cents. Then now
can we expect them TO do so under
nresent conditions at 35 or 40 cents?
There are not as many ships in the
world for hauling freight now n
there was before the war by millions
of tons. We can clearly see that 1t is
physical impossibility to sell anc
shin the coming crop as fast as gath
cred. We must remember cotton eA-
porters buy very little cotton unless
they can sell it, and they cannot sell
unelss they can ship. If they do BUY
and hold small amount they can
not pay as much for II as they would
n they could ship readily. 1t does not
reouire n cotton expert, banker. or
noIitician to see that the South can
not follow the practice OF seii'ne
her cotton as fast as gathered, unless
she does so to spectators at pre-War
prices of 10 or IL cents. the most
iI,iterate can see that it is an impos-
sibility to maintain prices near the
cost of production and attempt 10 sell
The next several crops as fast as gain
erer. All agree prices must be mann
tanned to prevent bankruptcy as the
crop has been very expensive "
make.
MANY farmers are in debt TO banks
and merchants who need their money
They would like to collect their debts
as fast as cotton is gathered ana the
farmers would like to pay. But we
have a condition confronting us which
Is no theory or dream. 1t is the re-
sult of a world war, and we must not
feel that because hostilities have
ceasad normal conditions have re-
turned. They have not and will not
for several years. and we all hope
that so far as prices of cotton are
concerned they never will.
The last Legislature OF Texas en-
acted some wise laws which will en-
able those in debt to meet their oo-
LEGATIONS without selling their cotton
and without throwing the banks IN
n strain or danger. In the past there
,,as M law in Texas whereby ware
houses and cotton yards must issue
negotiable warehouse receipts. or re-
ceipts which would pass from one
person to another, because of the
guarantee of the State behind it,
The Weights and Measures law
provides that every person weighins
for the public must give bond TO the
State for correct weighing. The Uni
form Warehouse receipt act provides
that If a farmer takes his cotton &c
a cotton yard or warehouse ana calls
for a negotiable receipt, the manager
OF such yard or house must issue MN
such receipt which must state th'
weight and grade of the bale OF cot
ton. Bond is also required to be Civ
en- the State that the bale has beef
correctly graded and will be protect
ed from damage or loss. This la'
places a bonded weigher and grade
in every market place in the state
Thus a small bank can make loan
to farmers on cotton and If 1t get
overloaded, the receipts can be pass
| ed on to the Reserve Bank or othe
| large banks, trust companies, or III
| dividuals who have money to loan o
the safest of collateral. This Shout
| he of special advantage to the cour
try bank, since the Comptroller ma
ruled that Section 5000 OF the Ma
| tional Banking Laws will be strictl
enforced, which prohibits ban
from loaning more than 10 per Ger
of its capital and surplus to one pei
- 80. sirp, Tho hanks deposits ca