The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-08-13
BOYCOTT DECLARED AGAINST
FARMER AND HIS PRODUCT
Continued From Page g.

contracts nave SOLD, WIN Ine uInloSI
abandon and in complete disregard
of the cost of production or of any
other economic phase, cotton which
they have not in possession, which Is
not yet made and which they vii have
to buy. The bull speculator has been
dehorned and the bear speculator Is.
running amuck. They have sold fu-
ture deliveries to a discount of from
8 1-2 to II cents per pound under
spot prices. They are in consequence
of this selling orgy short up to the
neck, and the farmer has the cotton
necessary for the fulfilment of these
contracts.
This. is not all. The entire cotton
good. merchandising and manufacture
ing trade is speculating on the shor'
side of the market. AS items of the
price depression propaganda VIC are
told that the retail merchants are not
buying goods, that the jobbers are
cancelling contracts with the mills
and that the mills are shutting down
or curtai1ing production and are not
buying new supplies.
Although these reports are to ar
extent true, yet the reason for this
holding of, and the consequences
thereof are significant. Nobody buys
on declining market. These inter
ests are holding off purchases not
because they do not expect to need
new supplies but because they ex-
pect by postponement to buy them
cheaper. They are all gambling upon
the inability of the market to with
stand the new crop pressure and up
on the incapacity of the farmer to
survive the boycott which has been
declared against him and his pro-
duct.
The whole world is therefore spec
ulating on the short side of cotton
and cotton goods. Of course, If in
the new order of things the world ex-
poets to go naked and discontinue US
ing cotton goods, then these specula-
tors are reasonably safe. This, how
ever, is an unlikely contingen-
cy. This is sure, that when the fu-
ture contracts mature, when the
shelves of the retailer are empty,
when the wholesale merchant is with
out contracts with the mills and when
the mills are bare of supplies, some
body will have to buy. With the re-
tail and wholesale merchants clamor-
ing for goods, and with the contract
shorts and the short spinners compet7
ing in the spot market for the raw
material, the cotton situation Will
take on an entirely different aspect.
This demand must come and the
longer it is delayed the more avid
will it be. Then the cotton farmer,
by handling his business with Judg-
ment, will be in a position to force
prices to level which will give hin3
his rightful profit. The only chance
for a contrary conclusion is that the
producer of cotton shall sit supinely
by and permit these contract, cotton
and. cotton goods shorts to take his
product away from him at prices fix
ed by themselves. This the Southern
cotton farmer will not do. He has
demonstrated his courage and his
ability to withstand these raids and
he will do it again.
But we are told that the load OF
low unsaleable cotton which the
banks are carrying will make it I'M
possible for these institutions to fl
nance any holding or gradual mar
keting movement for the new crop.
answer that the banks of the South
Are strong and that the bankers Will
not permit the greatest asset OF the
South to be slaughtered for lack OF
the necessary finances. l say, fur
thermore, that the new crop can'
without any financial strain, be hello
and marketed At remunerative prices
by following the entirely feasible
and economic plan to be hereinafter
outlined.
Acute Deterioration Probable.
Let it be remembered that the new
crop is by no means made at this
time, as confidence short sellers
seem to believe. The change from
the desperate crop situation of two
months ago to the comparative prom
ise of the present day has caused an
ovoroarated reaction in the minds OF