The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-01-08
WANNAMAKER PLANS
MANY WAREHOUSES;
SOLUTION OF COTTON PROBLEM
LIES IN STORAGE FACILITIES.
Warehouse Certificates Backed by
States Guarantee Almost
as Good as Currency.

st. Matthews, Jan. 3-Following
is an article given out by President
J. Skottowe Wannamaker Of the
American Cotton Association:
There is in. the world today cnlY
one commodity superior to cotton
gold. No stocks or bonds or any I. rm
of securities have such world wide
market as cotton. Nothing can. be
so, readily sold in so many markets
at very small concessi n from the
market price. Nothing can be imma-
diately sold for near or distant fu-
ture delivery on so many exchanges
in so many countries as cotton. Two
guarantees are necessary and cotton
will so n take its rightful place as
the best collateral in existence. The
lender wants to be sure, first,
the bales are where the warehouse re-
ceipts says they are; second, that they
are of the grade stated in the cer-
tificate. Then he will lend the roney
gladly.
Cotton should be warehOused i'm
nnediately after ginning, either IN a
warehouse under Ferderal superyiB-
ion orState supervision; it sh uld be:
graded IVA government grader. This
renders it absolutely bankable- as
secure as gold, 1t is liquid; can be
converted into e2sn at any time.
Not NatHSal Depot.
New York is not a>natural cotton
depot. 1t is only naturally INK
in the chain of domestic apd forelgn
transportation, largely the latter. new
York is not near any spinning SSnter
and is far from the cotton planNS~
tions.
1t is only as a result Of conditi ms
existing in '69 that the New York
Exchange was established. It has
been proven often this year, IL indeedl
such proof was needed, that Ne
York is not a natural storage place
fered to New York except as the re-
suit of inflated prices and the great
est necessity to have it delivered ON
contracts. Cotton in the South today
is bringing far higher price than
colt n in New York.
AS a result of conditions that exist
today and that have existed for years.
cotton is absolutely the football or
the gamblers; the bear gambler
kicking the ball ninety-nine times
to one kick by the bull. AS result
the producer pays the penalty and
the manipulation and gambler reap
the harvest.
Future are Developed.
About six years after the War Be-
tween the States when the poverty
and bankruptcy Of the Southern
States made them entirely dependent
up n the financial accommodations
New York could furnish to the mer-
chants OF the cotton producing States
So as to enable them to extend cie
in the way of goods to the producer
trading on the exchange C tton fu-
lures was developed. At that time hu
little cotton was grown in Te.
none at all in Oklahoma, then the In
dian territory. the largest portion OF
the cotton crop being produced in
THE Atlantic States from Virginia,
south, where it was shipped to Eu-
rope via the ports of N rfolk, Sa-
yannah and Charleston.
In those days the South was help
less. it had no voice in the framing
Of either its commercial or political
life. The government of the South
was in the hands 100000 slaves,
under the leadership of the carpet
bagger. the South was bankrupt. To
exist it must produce cotton, it was
only theirs to do or die. In those
days there were but few cotton mills
in the South; the entire southern
C assumption of cotton in 1871 vas.
abuot 81 900 bales, it was not there
fore d. fficult for New York to attract
re- onabiy large stock of cotton
from comparatively nearby territory
and she naturally became an import
ant and legitimate tton market.
Cotton ut New York.
On February 20, 1880, when New
YORK was Gbout at its zenith as q
real cotton market, the cotton held
w the warehouse there was 294 ,449'
bales, or aboat 81 per cent OF the
crop~ot that seas n, which IS ST
$4,000 bales. On the. 1Hl ~ SoSsRk
Der, 1919, the wareh of Nv
York contained only GS033 bales, ox
43.100 of l per cent of this years
probable commercial crop Cf II ,008s-
600 bales. The reason for this reduc-
tion in the stock carried is that the
cotton mills that have been built
sints 1880 in the territory that was
formerly Tributary 10 New York con-
sumo nearly all the colt n that is
raised there and can afford to pay
far more for it than it would return
ii delivered on the future contracts
that are bought and sold in such
enormous volume f the New York
Cotton Exchange.
In its raw form, including the seed
the worlds present cotton crop is now
worth at least 5000 per bale, or about
three and half billi dollars. II
its manufactured form its value is
about tripled and would approximate
L IL