The Camden chronicle. (Camden, S.C.) 1888-1981, October 08, 1920, Image 5
>gether
The South is now lacing another serious situation. The
Ijfce of cotton has declined so rapidly that all those interested
jfi this staple are confronted with vast losses? At this moment
cotton is selling below the cost of production, With seed at $20
to $30, cheaper cotton and tighter money, what is to become of
the South ? It is in a great crisis like this, however, that we must
exert ourselves to greater effort, and take some action that will
turn the tide away from low prices and disaster to higher prices
and a fair return for the work and effort put into our cotton
crops. Now is the time to sit steady in the boat. Because cot
ton is the life blood of trade in many states, and affects millions
of people, thousands of businesses of all kindb, there is great
! difficulty in obtaining concerted action that will benefit
the cotton producer and others interested in the staple. But
the time has now come, when Southern business men must
stand together. Bankers, merchants, farmers, professional
f men, manufacturers, laborers ? every person living in the
| South must give his moral support to the various efforts now
being undertaken by cotton interests to see that the cotton
farmers and others interested receive their due. The producer
of the 1920 crop must get back enough money to reimburse him
for it's cost. The price of cotton must be advanced or the
whole South will suffer. You can do your share.
STOP SELLING? HOLD YOUR COTTON?
DON'T SELL A BALE UNLESS NECESSARY.
Don't sell a bale of your cotton unless absolutely necessary
to meet pressing obligations, and then sell only off grades.
The trouble wifrh most rot, ton producers ? is that they bring all
of their cotton in at one time and are so anxious to see ready
money that they sacrifice the larger profits the future will
bring them to get immediate cash. Any man selling cotton at
present prices is selling it below cost of production. Wait!
Dont sell ! Get the cost of production and something over. The
U. S. Department of Agriculture reported the cost of producing
the- 19 IX crop was approximately 28c per pound, bulk line cost
(this averaging all grades) . It has estimated that the 1919
crop cost one-third more. We all know that the 1920 crop is
the most expensive ever made^therefore, anyone can guess the
minimum cost of the 1920 crop.
If the law of supply and demand were permitted to func
tion. cotton would be selling today^ at a price far above the
cost of production and the matter of a sufficient supply of cot
ton would be the most serious concern of the cotton consuming
industry. Both agricultural and commercial life of the
South is in jeopardy as a result of existing conditions.
After short crops for several years and with the 1920
crop only a fair one, if not a short one, and with much low
jrrado cotton carried ' over from 1919 and previous seasons,
there is no over supply of cotton. Because of this fact there
has been no inflation of the price of cotton. Since there has
been no inflation or enhancement of the price forced up by
speculation, there can then be no legitimate deflation. In other
words, it is not with cotton as it is with silk. Japanese specula
tors in silk forced the price up to. from $20 to $24 per pound
when there was an enormous supply of this commodity in China
an" Japan. The price of silk has no*w come down to $1 and $5
?Jecaust* ihe speculative balloon ? has been punctured. Hut the
price i.j cotton-has been a logical one caused by the scarcity of
lhe commodity and the high cost of producing it, and the same
Mtua?i<.r. , . x ists today. Therefore, when the law of supply and
! becomes operative the price of cotton Avill surely go to
?? hijrh. r level.
i ho government estimate came out yesterday but do
'ftf i ? . ? ? ?
affect your stand in the matter of holding yourcot
.*??? attention to it whether bullish or bearish. Simply
? niton for your price. Also remember that the Ameri
u;i Association *has recommended to set aside 25 per
(en;- fl- ^e best grades from the growing crop, removing that
n ?'* !. irom the market until next May, June and July, unless
ren,li:;, rative price is offered. This means the orderly
'?ikt -t.r.jr nf crr)p on basis of one-twelfth each month.
YOU CAN BORROW THE MONEY.
THE FEDERAL RESERVE BANKS ARE HELPING.
misunderstndinE has prevailed about the attitude of
*pec f ^oserve Rank system. The bear manipulators and
Prel ' ' ?rS arC senc**n? ou^ many false reports to create the im
*tric 1011 ^oans on c?tton warehouse receipts would be re
lr (( ?rtnd that growers who owed money would be forced to
si if their cotton. Governor M. R. Welborn, of the Atlanta Fed
< raj Reserve Bank, said recently:
"VVe are advising our member banks in reply to their in
quiries, that they need have no fear that the Federal Reserve
?at)k will not function properfy and accommodate it's mem
ber banks ^n re-discounting their customers' notes secured by
cotton, for the orderly marketing of the cotton crop.
"We are following our custom of the past in accepting
from member banks notes of merchants and cotton shippers for
90 days secured by cotton, up to 80 per cent, of its market
value, properly warehoused and insured ; and notes by farmers,
secured by cotton up to 80 per cent, of its market value, insur
ed and properly stored, having a maturity within six months."
In a strong and forceful address delivered by Governor
Ramsey of the Dallas Reserve Bank before the cotton conven
tion of the American Cotton Association at Montgomery, Ala.,
September 3, he took practically the same position as Governor
Welborn.
In addition to these, Gov. W. P. G. Harding, of the Federal
Reserve Board at Washington, has issued' similar statements
guaranteeing that loans to farmers would be ample to enable a
slow and orderly movement of the crops to market.
Don't be afraid to ask the banks to loan yofl money on
your cotton. If you have a few bales to market, instead of sell
ing them take them down to a warehouse and get a warehouse
receipt, then borrow money from your bank or merchant on
this warehouse receipt. ?Borrow ' money to hold your cotton.
Don't sacrifice it. .
DON'T DUMP YOUR COTTON ON THE MARKET
NOW TO FORCE THE PRICE LOWER.
The price decline at present is due not so much to the lack
of banking facilities as it is to the headlong effort on the part
of the grower to sell his product quickly regardless of price or
value. It is foolish to become panicky and sell out way below
the cost of production. Of xxaurse, those 4ntere#ted in seeing
lower prices, or in making money on the decline of cotton, are
doing all they can to spread broadcast rumors to the effect
that cotton is going to the bow-wows. Don't be frightened by
any such propaganda. Hold on to your cotton and you will get
your price.
ADOPT THE PLAN OF "ORDERLY MARKETING"
SELL ONE-TWELFTH OF YOUR CROP PER MONTH.
In the first three months of the marketing season 70 per
cent, of the cotton passes out of the hands of the producers.
This is the reason why the price goes dowij in the beginning of
thfe seasoji and advances after the holidays. If every pro
ducer of cotton would tell one-twelfth of his cotton every
month of the year, he would get a better price for it. In other
words, await the demand and then supply the cotton as needed.
Don't be rushed into selling your cotton now. This is a fatal
mistake. Producers of cotton should learn how to store cotton
and borrow 80 per cent, to 90 per cent, of the value of the
warehouse rceipts and then sell it when the market can absorb
it-with the resulting advantage to themselves.
BACK UP THE AMERICAN COTTON ASSOCIATION.
This great association is the only organization taking con
certed action to help the cotton farmer and those interested in
cotton. It is.apparent to every thinking man that the bearish
elements are trying to hammer down the price. They are
working the same old g&me of running the price down so that
they can buy in cheap and when the world realizes that
cotton is scarce, cotton will go up again. The American Cot
ton Association is in the fight to prevent this game of trimming
the farmer. You should back it up to the limit. Every cotton
interest in the South should stand squarely behind this associa
tion. which is the greatest thing organized in the South since
the civil war. With the full aid and co-operation of cotton in
terests it will break the strangle hold of the speculative ele
ments and will see that the producers receive a just and fair
return. Every local branch of the American Cotton Associa
tion should have 100 percent, membership. If your are not
already a member join your local branch today. Get behind
the movement ? help save the South.
PLEASE REPRINT.
While this advertising is appearing in many Southern
metropolitan newspapers and is being circulated broadcast,
yet it can only reach a small proportion of the people. I am,
therefore, asking that every merchant, banker, or cotton pro
ducer who .sees this will endeavor to have it copied or re-print
ed and circulated among the people with whom he does busi
ness, and also have it re-produced in his local daily or county .
weekly, Pay for it yourself if necessary. The expense will be
small. It means much to you individually, youfr county and
the entire South that the message conveyed here be brought
home to every .man, woman and child in the South. ? -
T1IEO. V. WENSEL, President.
Rumble & Wensel Co., Natchez, Miss. Former chairman of
the Cotton Publicity Committee of the campaigns of 1916
and 1919; president of the Adams County Mississippi
Local Branch, American Cotton Association.
NOTICE
This advertisement is appearing in leading Southern news
papers. Several other advertisements will also appear. This ?
advertising is being underwritten and paid for by my firm,
Rumble & Wensel Co., of Natchez, Miss. I am doing this to
further the work of the American Cotton Association, the only '
friend cotton has had in the past two months. If you believe
this publicity ought to be carried on and are willing to help in
it, communicate at once with Theo. V. Wensel, Natchez, Miss.
1
RECOMMENDED PRICE BY THE AMERICAN COT
TON ASSOCIATION.
Cotton, basis middling. 40c per pound with an increase of
1c per month after November 1, 1920. ?
Cotton seed, $60 per ton, or one ton of seed for one ton of
7 per cent. meal. v
That was the report of the Committee on Cotton Acreage
and price Recommendation.
The American Cotton Association meeting, Montgomery,
Ala., Septembr 3, 1920.
IS THIS CAMPAIGN TO HELP SAVE tHE SOUTH
WORTH WHILE?
If we, only stand together and cotton sells for lc a pound
higher price that means (based on a 12,000,000 bale crop)
$60,000,000 ; if a 2c pound advance, $120,000,000; 5c pound,
$300,000,000; 10c pound, $600,000,000: if an advance of 20c
per pound, (or say to 40c per pound), that means the stupend
ous sum of One Billion Two Hundred Million Dollars, yet at 40c
per pound we are only getting the cost of production, (if tha%).
UNTIL COTTON BRINGS A PROFITABLfe PRICE TO
THE GROWER
Every line of manufacturing in the South will be limited
in its development until cotton brings a profitable price to the
grower. Every educational advancement of the South will be
lessened in its efficiency until cotton brings a profitable price
to the grower.
Every religious activity of home missions and foreign mis
sions will be limited iT^fc* work and its power to raise money
for the extension of the gospel throughout the world until
cotton brings a profitable price to the grower.
Every country school and every country church will con
tinue as at present, inefficient, inadequate to the work it is
trying to do, occupying as in most cases some wretched build
ing, unfit for the purpose, until cotton brings a profitable, price
to the grower.
? RICHARRD II. EDMONDS, Manufacturers Record.
JUST WORK AND WAIT.
I here is no market for cotton now. The buyers are not in
the market. The spinners are not in the market. BUT THERE
WILL BE A MARKET FOR COTTON. THE MILI.S WILL
COME IN AND SO WILL THE BUYERS.
Do not get stampeded. The thing to do now, then, is to
pick the crop and when the demand does come, don't dump it
all on the market at once. Hold the. cotton, not for a big price
when the demand does come, but try to be in shape so you can
be able to secure for it something like, its value as measured by
cost of production. I
Take your eyes off the future and spot board for a few '
days. We are not attempting to say what the market will be,
but certainly this is time neither to ? offer Or sell. The cot
ton mills are out of the market. Wait until they come in.
? From Memphis Commercial Appeal.
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