The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-25
Peanut Growers. Exchange Con
tracts for Cleaning Peanuts.

SaniZatlon began MONDAY, iNdTcH
goth. when the Suffolk Peanut Co..
the oldest peanut plant here IN
Suffolk and one Of the three lars-
estin this country, started on its
contract with the Peanut Grow
ers' Exchange to clean large por-
ton of the peanuts held by this as
sociation Of more than 5000 grow
or members in Virginia and North
Carolina. The announcement that
this association had perfected ar
rangements with this large cleaning
plant 70 clean the bulk of the S00,-
900 bags Of peanuts held by it on
a milling basis is generally inter
preted here in Suffolk, the largest
peanut market in the world, as the
most significant event in tho his
tory Of the peanut industry in
America.
This arrangement for the clean
ing of peanuts by the Peanut
Growers Exchange is in accord
ancc with the provision of the
growers contract, which binds each
signer 10 sell his peanuts through
the exchange for a period OF sew
en- years. On account OF the late
ness in getting a sufficient number
of signers to represent 80 per
cent Of the peanuts grown in these
two states so as to complete their
organization, and also on account
of the promise of an unprecedent-
ed short peanut crop at the time OF
| beginning operations, the board OF
directors of the exchange decided
! that during this first year they
would cooperate with these estab~
| !ished cleaners by selling the pea
nuts Of it's members to them in
stead of trying to establish its own
selling agencies. However, it sooH
developed according to the conf
Dental reports Of more than one
third the exchanges own members
! that the total production OF pea
nuts in these two states for 1921
was from one-fourth TO one-tl1ira
larger than in 1920. and that a
considerable portion of these pea
nuts were Of such poor grade as to
be classed as shelling stock. AS
the result Of this increased produc-
ton and the low price. of all vese--
table oils, prices on peanuts drop
ped a few days after the first OF
! ferings Of the new crop from 25
to so per cent less than the prices
prevailing at the end of the. FIr-.
! ginia peanut year in Octboer. But
/ for the fact that the growers eX-
change refused to sell any pea
! nuts at the prevailing low prices
and withheld from the market its
holdings of 500, 900 bags, the gen
eral concensus Of opinion among
the business and professional IN
! terests of this section is that the
price Of peanuts would probably
have gone decidedly lower.
Another strong factor to keep the
prices Of peanuts from going still
lower has been the duty Of three
cents a pound on peanuts provid-
ed for in the emergency tariff and
still in force, though the bears on
the peanut market have made full
use of the uncertainty surrounding
tthe action of congress as to the
permanent tariff bill. now pending
and which provides for q. tariff of
three cents on unshelled and four
cents on .shelled peanuts. The one
saving feature Of this unfortunate
situation has been the recent ad-
vance in the price Of vegetable oils,
which has caused a large quantity
OF low grade peanuts to be sold
for oil instead Of for candy and
peanut butter. Through arrange
nents perfected by Manager 7. n.
Birdsong of the Peanut Growers
Exchange. the cleaners nave Soid
their entire output OF No. 2 and NO.
8 Virginia shelled peanuts. for the
next six months at prices from one
half to one cent a pound higher
than those prevailing before the
recent advance in hogs followed by
a corresponding advance IN all
vegetable oils.
However as these lower grades
have advanced in price. the higher
grades Of the Virginia peanuts, con-
trary to all prccedents, have not
only not advanced. but have actual
" declined to where variety and size
differentiations have been wholly
obIiteratcd. As the result OF this
most singular development, Jum-
bos. the largest size Of the unshell-
! ed peanuts, and which for sever
al years past have sold at from so
TO 100 per cent higher than Fancys,
which are the second size Of the ull-
shcllcd cleaned peanuts, are now
being offered 10 the trade at the
same price in the dumfounding
quotations: '.Jumbos or Fancys,
6 ID cents a pound, take Your
choice The conditions which
!, have brought about this breaking
down of all accepted standards for
grade and variety which have pre-
vailed since the beginning Of the
peanut industry in America. have
played a big part IN prompting the
peanut growers through their or
ganization 20 take definite steps ii
this time to have the peanuts of
+ it's members cleaned and sold under
it's own trademark and brands.
Plans are already on foot for the
sale OF $250.00Q of Preferred Stock
/ in order to Sive the exchange the
necessary additional workins capi-
/ tai 20 enable it to carry on these