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"Untie From Wall Street "Before We Tie To You”
J. K. Eubanks. Georgia business
agent of the Farmers’ Union, was in
Atlanta recently, having come direct
from Birmingham, where he attended
the meeting said to have been called
by bankers and spinners with the view
of organizing a cotton warehouse
movement.
“We were invited to this meeting,"
stated Mr. Eubanks, “in order that we
might hear this question discussed.
Our Alabama state business agent, P.
F. Parker, was there, and also a few
other Farmers’ Union representatives.
“The announcement has gone out,”
continued Mr. Eubanks, “that a plan
was agreed upon at this meeting, and
that it had the endorsement of both
the Farmers’ Union and the Southern
Cotton Association. Nothing could be
further from the truth. Alabama State
Agent Parker has already sent out a
denial of the statement, making it
clear that the Farmers’ Union has not
endorsed the plan promulgated.
Jordan and Hoadley.
“I may as well be frank,” said State
Agent Eubanks, “and say that as soon
as we got to Birmingham, we found
that the meeting was all cocked and
primed by the Southern Cotton Asso
ciation. The invitation wo received
came not from it, but from others, the
Southern Cotton Association evidently
fearnig to take the lead in the move
ment on account of its odorous con
nection with Mr. Hoadley, of Wall
street. So we were invited by others,
but wo did not take the bait. From
all we could see, one end of the fish
ing pole was in Wall street, and we
have no doubt that Speculator Hoad
ley was eagerly feeling for tremors at
the handle end to see whether or not
the nibbiers at the other end of the
line meant business.
Too Close to Wall Street.
“We must make it plain now that
we cannot and will not co-operate with
the Southern Cotton Association, as
long as it is officered by men as close
to Wall street as are some of its pres
ent head officers. Less than six
months ago Mr. Hoadley, in an inter
view, boldly made the statement that
he was kept constantly in touch with
cotton development in the South by
almost daily communication with Pres
ident Harvie Jordan —that Mr. Jordan
let him know ‘just what was going on,’
etc. That came only a short while
after the time when the Southern Cot
ton Association endeavored to force
the Farmers’ Union to make a stand
for 10-cent cotton for last season. We
would not do it, but made a straight
out fight for 11-cent cotton, and large
ly as the results of our efforts most
of the last year’s crop has sold at
nearer 11 cents than 10 cents. If we
had agreed to 10-cent cotton, not one
bale of cotton in the South would have
brought more than that figure.
May Be Loaded.
“As to the Birmingham warehouse
movement, a plan was proposed by
this convention to establish a cotton
exchange for handling warehouse re
ceipts, closing contracts on them in
stead of spot cotton. Our plan is for
the Farmers’ Union to deal only in
spot cotton, and to sell direct to the
spinner. We are establishing ware
houses throughout the South, and at
the present rate of increase it will not
be long before our warehouses arc
available to the entire cotton belt. But
we propose to retain the identity of
a bale of cotton from the gin to the
spinner, giving the producer the bene
fit to be so derive d. It seems to mo
this scheme to handle paper only,
losing the identity of the bale of cot
ton is a scheme of speculation pure
and simple. It may work all right in
some instances, and In other Instances
Says Farmers' Union to the Southern Cotton As
sociation. Fubanks Considers S. C. A.
Leaders in “Bad League.
ROBERT TOOMBS ;i!
i
I ’ i!
\ SAM W. SMALL ft
• t!
• t!
( Sing ye bold peans to the Spartan band ft
! That died unconquer’d at Thermopylae, ft
! Or any else who, since that day, i!
• Have battl’d to save Freedom to their land: $
J Yet let us not forget the valiant stand ft
II Our fathers made against Oppression's sway
j When the mad North swept Justice from her way ft
i And fought to crush our rights with ruthless hand! ft
y. ft
K ft
Then stood forth Robert Toombs, the flaming soul, ft
| Master of forum, senate, or the field, ft
J To serve his Mother State with knightly zeal! !|j
j Now when that State again beats her long roll, ft
i And calls her sons to bear her sov’reign shield, ft
! Let us like him be ready, true and leal ! ft
? ::
it may be loaded at both ends and in
the middle.
“As soon as we struck what we
thought to be’ the bottom of the Bir
mingham movement, w T e politely with
drew and notified them that we would
have nothing to do with it.
Fears Southern Cotton Association.
“If the Southern Cotton Association
only knew it, it is working actual in
jury to the farmers of the South by its
constant alignment with Wall street,
and with the spinning interest. When
ever you hear of the farmers of the
South tying up with the speculators
of Wall street and with the spinning
interests, which naturally w r ant low
priced cotton, right then and there you
may be prepared to look for a new
period of low-priced cotton. We have
forced high-priced cotton by our inde
pendent and organized effort. We pro
pose to be just and reasonable with
the spinners, and not to extort a penny
from them by charging more for our
cotton than its actual worth.
“But the time has passed when they
can get our cotton at a penny’s less
value than it is actually worth, and
likewise the time has passed when the
Wall street speculator can beat down
our cotton and enable the markets of
the world to buy it at less than its
true value.
“This thing has been done by the
Farmers’ Union, and, despite come of
the highest officers of the Southern
Cotton Association —and having done
this much ,we do not propose to tie
up any further with the Southern Cot
ton Association until it unties itself
from Wall street and the spinners.”
Why Farmers’ Union Did Not Approve.
At a recent meeting of agricultural
organizations, representatives of spin
ners and bankers in Birmingham. Na
tional Farmers’ Union Business Agen%
P. F. Parker, of Alabama, made clear,
WATSON’S WEEKLY JEFFERSONIAN.
in a statement, why the Farmers’
Union was not ready to join in the
cotton warehouse receipt movement
inaugurated at that meeting.
An exact reproduction of the state
ment made by him, as setting forth
the attitude of the Farmers’ Union, is
as follows:
“There appears a radical difference
of opinion on one vital point. The
Farmers’ Educational and Co-operative
I nion has gone on record as favoring
a plan of procedure that will preserve
the identity of the sale of cotton from
the time it takes shape at the gin until
it loses its form at the mill, and to
that end we are building warehouses
for the purpose of properly protecting
the cotton. We are devising plans by
which we can keep correct record of
each package from the gin through
the warehouse and along all its meand
erings until its final destination is
reached at the mill where its form
is to be changed.
“Our reason for this will become ap
parent as you think over the situation.
We want the farmers to take pride in
putting and keeping his product in
marketable condition. We want him
to become anxious to place his name
on each bale, just as does the manu
facturer of every merltoriius article
of commerce. We understand that
certain manufactured articles have be
come standard because of the pride
taken in perfecting and maintaining
the quality of the goods. We also find
that certain largo commercial and
banking interests have been built up
and maintained by painstaking exact
ness in working out the details of busi
ness. This we propose to do through
our warehouses.
“That the spinner will agree with us
there can be no doubt, as what he
wants is actual cotton. This he is sure
to get if he deals with the farmer di-
rect. We are sure he can no more
spin a negotiable receipt than he can
a paper contract. Therefore, all he
wants to know is that the farmer that
produces the cotton, the warehouse
man that weighs it, the cotton union
or exchange that transfers the title
are each responsible for their share
in the process of transfer, and the
point the banker should be vitally in
terested in is that it is actual cotton
and not paper contracts that he is
risking his money on. The Farmers’
Union proposes to actually meet these
conditions by absolutely refusing to
part company with the cotton until
the price agreed upon by the National
Union has been reached.
“We are told that this cannot be
done, because of the economic law of
supply and demand, and there are peo
ple so short-sighted as to think that
we hope to abrogate that law. Our
purpose is to enforce the law of sup.
ply and demand in fixing the price.
We will first fully consider the actual
demand in view of the probable sup
ply and then fix an equitable price,
based upon supply and demand, legiti
mately coupled with the cost of pro
duction. When this is done we shall
maintain the price by regulating the
supply to the demand. This can he
done only by our being in position to
take care of the so-called distressed
cotton and prevent its being dumped
on the market. Here is the first place
we see for the banker to legitimately
enter the proposition. If he will fur
nish us cheap money on actual cotton,
allowing us to retain ownership until
our prices are reached or we get ready
to sell he can co-operate with us. The
next place the banker can help us is
in handling bills of lading. Here,
again, the banker is interested in our
preserving the identity of our cotton
and not letting it be swallowed up
by a bill of lading that, like a certifi
cate or paper contract, may be a fake.
“The spinner is very much inter
ested at this point. He wants the
banker to be absolutely sure that the
bills of lading represent actual cotton,
definitely described and actually on
board the cars. To know this he not
only wants the number, grade and
weight of each package, but he also
wants the car initials and number.
“Gentlemen, in view of these facts
and the further fact the speculator
and market manipulator more fully
understands the processes of juggling
with certificates and paper contracts
than does the actual farmer, we would
respectfully suggest that the putting
on foot of this proposed exchange be
deferred until a more thorough equip
ment of the machinery of warehousing
and grading is perfected and a more
definite understanding with the spin
ners is reached on a question of a di
rect deal. Hoping that our position
has been made sufficiently clear and
that you may intelligently compre
hend just where we are, we thank you
for the privilege of thus presenting our
views.” <
<.
A CLEAN SENATOR. >
Senator John T. Morgan, of Ala
bama, occasionally writes magazine
articles which involve a great deal of
research, but he uniformly refuses to
accept pay for them. In the course
of his public career he has been of
fered innumerable railroad passes, but
never accepted any, either for himself
or any member of his family. Though
over 80 years old. he thinks nothing
of working half the night. The sena
tor never haunts the departments look
ing for jobs for constituents. Os mod
erate means when he entered the Sen
ate, he is now a poor man, having lit
tle or nothing but his salary.
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