The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1920-04-07
ADVANCE
IN COTTON PRICE
Wannamakcr Sees Bright Future for

Farmers.
"The producers are learning the
marketing end of production and it |
would seem that they are apt schol-
ars,' says j. Skottowe Wannamakcr,
president Of the American Cotton as
sociation.
NAM Of them arc accepting the op
por,unity oficrcd them TO sell their
cotton for October and December de-
livery at a price far above what they
can buy October and December cot
ton on the exchanges. This oppor
tunity has been offered from European
sources. Europe is intensely uneasy
over the nw cotton situation.
"Roalizins Tie enormous increase in
the requirements Of raw cotton to fill
the pressing demands for the mana-
factured product at enormous profits,
the shrewd European trader has de-
hence he is covering his wants by
paying to the American producer a
price enormously above October and
December quotations the producer to
assure himself Of the absolute certain
ty Of handsome profit, Immediately
upon selling to his European cousin,
purchases the same amount Of cotton
for October or December delivery up
on the New York exchange and these
transactions are now making these
sales, but in addition certain export
crs are making large comments. One
OF the leading exporters Of the South
makes the following comment:
Myself and fricnds last season
sold an enormous amount Of long
staple cotton at around 40 cents per
pound and failed to hedge It and as a
result We reapcd Il loss that vas cnor-
nous. The opportunity offers today
different from anything ] have expert
no question, but that it offers safe
sound business and the absolute Ger
tainty Of enormous profits. Under no
conditions would sell bale Of cot
ton today without Immediately rcbuy-
ing it on the exchange, we are facing
Il enormous demand for raw cotton
and marked and almost complete
change in the cotton industry and
there is no question, but that as n
result Of the sales that have already
been made and the demand for raw
cotton for fall delivery and the sales
OF the same and the repurchasing Of
the same on the exchange, a startling
bullish effect will be had on prices this
fall. We are facing the absolute i'm
possibility OF producing large crop
| in 1920. The season is starting from
| five to six weeks late and there is a
great scarcity of labor and shortage
| in planting seed; the absolute GER
tainty, with favorable seasons OF only
a normal crop and with adverse sea-
sons the certainty Of an extremely
short crop and under these conditions
| the actual cotton bought on the New
York exchange under these contracts
| is bound to show a handsome profit
this fall, as future cotton Is far below
a parity with spots, and as a result Of
! the conditions named 50 chances out
Of 100 futures this fall will show a
big premium over nine chances over
spots. 1t is my candid judgment that
spot cotton will be called for on these
contracts when they mature this fall.
One thing Is absolutely certain, based
upon supply and demand and the price
OF tho manufactured product and the
cost OF producing cotton under exist
ing conditions we are facing the cer-
tainty Of far higher prices for spot
cotton this fall than prevail today"
at will not be possible even under
ideal conditions to raise another large
cotton crop this year and cotton will
sell higher than it has since the Con-
fcdcrate war.
! "Undcr the leadership OF the Amer
lean Cotton association, sufficient
warehouses are being constructed in