Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-08-28
SEES CALAMITY
IF COTTON BEARS
ARE SUCCESSFUL

Declaring that the south is facing
a calamity; that the cotton situation
threatens to become even worse than
in 1914; that commercial slavery is
in prospect for the southern states
unless drastic measures are taken
to prevent it, J. S. Wannamaker, pres
ident of the American Cotton asso-
citation, on Thursday gave out a
statement in which he called upon
all cotton producers to cooperate in
the effort to foil the bear movement
in the cotton market.
At the convention of the associa-
ton to be held September 1-3 in
Montgomery, Ala, Mr.. Wannamaker
improvement of cotton situation:
These plans include the formation of
"a cotton export corporation, the re-
tirement of rs per cent OF the pres
ent crop, reduction of cotton acreage
in 1921, increased production of food
and feed crops, cooperative market
ing, steps to prevent the importa-
ton of Oriental oils, to prevent the
gathering of off-grade cotton, leg1S-
lation to insure the classification of
cotton, according to the American
standard, establishment of a mini
mum price for cotton and cottonseed.
Mr.. Wannamaker's explanation of
the situation and of some of the rem
edies he proposes, follows:
1.-The south is face to face with
calamity; conditions even lar worse
than prevailed in 1914. AS result
of the thorough organization of bear
and spot gamblers, backed by power
full vested intereSteS in America and
abroad, the price of cotton is being
steadily hammered down, regardless
of the fact that there is an enormous
increased demand for raw cotton and
regardless of the fact that the mat
ter of adequate supply of raw cotton
is of the most serious concern to the
world today. Prices have been ham
mered far below the cost of produc-
the cost of production confirms the
statement of the government that the
growing crop is the most costly
ever produced. This combination is
boasting that they will force prices
to Is cents per pound. This, in the
face of the above conditions. and
following a period when the mills
have made unbodly earnings, is un-
thinkable. However, it only requires
an ounce of common sense to realize
that this is not an idle threat, but
is the result of an organized com.
bination, and that it will be carried
into effect and force unless the south
can defend itself. Thousands of let
tiers and kilograms are porting into
headquarters, offering various solu-
tionS. Some of these are practical
some impractical.
Each of the states has been re-
quested to call a state convention
to consider:
corporation for the purpose of
which is to be paid for in cotton. I
shall ask that million bales of cot
ton be subscribed in the stock of
this corporation and that each of
the cotton-p@oducing states take It's
proportionate share. AS an. illus
proximately one-twelfth Of the cot
ton crop. South Cardinals share of
this stock would therefore be be-
tween $4,000 and $4,000 bales Of cot
ton. Central Europe is in desperate
need of cotton and this is the only
ton into central Europe. Every bale
of cotton we remove from the mar
ket will increase the value of the
remaining cotton and in furnishing
central Europe with raw cotton we
will enable them to enter our mar
ket in combination against the COM
bine which is now killing us.
Il shall ask the cotton belt to re-
tire Is per cent of the growing crop,
in the following manner: Each state,
will retire it's proportionate share of
the growing crop. My plan for re-
firing this cotton from the market is
as follows: The producer is to
warehouse this cotton and turn the
warehouse receipt over to a bank to
be designated by the officials of the
American Cotton association in each
state, said bank to give to the pro-
Queer a trust receipt, said trust re-
ceipt being redeemable in July, 1921.
SO that under no condition will it be
possible to sell the cotton before
July, 1921; the bank issuing the trust
receipt to discount same for the
producer in the same proportion he
would. make a loan on the cotton.
This will enable US to easily retire
from the market 25 per cent of the
best grades of cotton which is des-
peratelY needed by the Morldn