The Birmingham age-herald., 1921-01-04
THOMPSONSEESA
 BRIGHTER OUTLOOK
 IN COTTON MARKET
Warehouse Handling to Carry Sales Over a TWelve-Month Period, Sustaining Price
 on Need Basis


 the American Cotton association. Ala bama division, senses a brighter pros- pect for the advance of cotton prices and fo rmore orderly marketing of the product.
 The association is conducting sys- tematic campaign for the increase of warehouse facilities so that marketing may be conducted oyer a 12-month pe- riod, and Mir. Tohmpson believes, is sue ceeding in its effort to have the cotton acreage red1ced 50 per cent this year. He believes much good has come from the organization of the several export corporations and declares that cotton is now in strong hands in the south Speaking of the situation and opera i tions of the American Cotton associa- tion, MT. Thompson said:
 Tt is interesting to know that the cotton mill inventories are lower com paratively than ever before; that dry goods jobbers and spot cotton firms are short and. may sooner than is looked | for be forced to cover. It may take the actual performance of actual cotton acreage reduction to convince the mill interests and spectators that the cot ton growers are in earnest.
 "The effect of the several export cor porations that are now being whipped l into form under the Edge act and the educational campaign now going on | throughout the 14 cotton-growing I states for 50 per cent reduction in | the 1921 cotton crop may pretty soon 1 be a deciding factor in the rapid ad- vance of cotton.
 "A big programme of diversification 1 is being worked vt by the American Cotton association for 1921. We are preparing to put before the farmers definite programme for planting acre age curtailed to cotton in certain other crops that will be more profitable than cotton has been or promises to be. In this campaign we will be assisted by such institutions as Auburn, the de- rartment of agriculture, the Interna- tional Harvester company and the many Federal government agencies. "The most important permanent con- structive work of the association for the next 12 months will be through warehouse commission to get in touch with every community in Alabama not now supplied with adequate warehouse facilities: To furnish plans for the building and to render every necessary
  NEED OF WAREHOUSES ''The lack of warehouse facilities is one of the most serious handicaps to the orderly marketing of cotton. The fluctuatior of cotton in one day would build an adequate warehousing system throughout Alabama-and yet we have gone on for 50 years suffering from country damage to the extent, some years, of $75,000,000 in the south. Cotton often fluctuates $10 per bale
 in one day, while sS per bale will build 1 the warehouse.
 ? WASTE FROM EXPOSURE 1 When we have completed our ware house system, there will then be | worked out a definite plan for the l regular and orderly marketing of the 1 cotton crop over a period of 12 months This cannot be done until we have the l cotton in the warehouses where it can
 be functioned through the federal warehouses with the local bank and | the federal reserve system. Today pos sibly 200, ,000 bales of cotton are lying out of doors in Alabama and as con- sequence will possibly take $20 per bale damage-an aggregate of $4,oo0,- l 900! This waste, if conserved one year, would afford the money to build suf- I ficient warehouses to store Alabamas s cotton.
 1 SMALLER COTTON BALES sThe American Cotton association is also working for high density gin compression, the lack of which entails ! loss. some years, of as much as $160,- 1 900, ,000 in it's many notifications. Tens of thousands of cars are used through out the season uselessly because of the l great bulkiness of the plantation bale | package. These cars should be con- served for the use of other industries. This one economy would go long way toward solving the car shortage prob
 lem we have heard so much about COMPLETING ORGANIZATION The American Cotton association
 has. accomplished a great deal in the reform of the handling of cotton in the | short period of Its existence. One of | the most important - the bringing about the bonding of about 50 per cent of the warehouses in the state under 1 the federal warehouse act.
 The association secured the pass ] age, in the last session of the legis- lature bill providing for uniform
 classification of cotton. according to l the United States standard
 1 We have not touched the hem of the garment of service as yet; we have just begun. We are now engaged
 in completing the organization in the
 
 other year of hard work to accomplish. We have organizations as matter of course in every county; but not com plete and working everywhere.
 1 The association is composed of l bankers. merchants and farmers and it | will be mighty force for good in the
 south by bringing about reforms in the marketing and handling of the staple l that will guarantee the producer a req 1 sonable profit. That will mean a happy and prosperous south!
 "The experience sof 1914 and 1920 1 when cotton was put on the tobaggan demoralized business all over the south and business generally will not revive until cotton begins to move and 1 it will not begin to move until those who require it are willing to pay the cost of production plus reasonable profit and carrying charges
 BANKERS HELPING
 Cotton Is now in strong hands in l the south and I might say willing
 hands for there has never been time when the banker has shown a greater l willingness to stand by the farmer [ than now when he has said to the 1 farmer in effect. This is going D be a long fight for commercial righteous ness and we approve the watchword of the American Cotton association which is to Spend and be spent. This great cause shall not fail for it is the
 cause of mankind'--and indeed it is. In the extreme rural sections of the
 south. there is much poverty because 1 of this one crop system. and the busi-