120 CIRCULAR 10 0, U. S. DEPARTMENT OF AGRICULTURE 



Soundness of the financing of green tobacco under the cooperative marketing 

 system was proved. 



Existence of the association seems to have increased prices to nonmembers 

 at least. Many growers, as a result of the operation of the association, have 

 learned to watch more closely the economic factors involved in tobacco prices. 



Many growers were shown the need of diversification of crops and many 

 were encouraged to try it. 



Experiences gained in the organization and operation of the association will 

 serve as a guide and warning in any future cooperative movements, since many 

 farmers have learned, at least to some extent, the principles, possibilities, limi- 

 tations, and difficulties of cooperative tobacco marketing. 



The people have become better acquainted with the abuses and inequities of 

 the auction-floor system, and the interest and solicitude of many townspeople 

 have been awakened to the plight of the tobacco growers. 



The tri-State association was responsible for much of the enactment of legis- 

 lation favorable to cooperative marketing in Virginia, North Carolina, and South 

 Carolina. 



Some of the members have found a bond of brotherhood for a common eco- 

 nomic cause. 



Evidences of another cooperative movement among the tobacco growers will 

 undoubtedly result in fewer abuses and better prices on the loose-leaf floor 

 than if no cooperative had ever existed. 



HARMFUL EFFECTS OF THE ASSOCIATION 



All the effects of the existence and failure of the association were 

 not beneficial. The following are some of the harmful effects : 



Many farmers were embarrassed financially by the delay in paying their 

 contracted debts either through the fault of the association or through their 

 own because they expected high prices. 



Its failure created a pessimistic feeling as to the future of farming and of 

 cooperative tobacco marketing in some areas. 



Its existence stimulated the production of tobacco in other areas thus adding 

 to the total supply. 



Many loyal members in some communities have become antagonized against 

 the nonmembers or contract violators, and vice versa, creating a division of 

 sentiment among the tobacco growers. 



Stocks of tobacco held by the association at the time of receivership, and 

 after, may act to depress tobacco prices as long as these stocks remain unsold. 



Some business enterprises, as stores and banks, have been embarrassed 

 because of their loans to members on the security of participation certificates. 



FUTURE ORGANIZATION 



One of the most commendable things in connection with the 

 Tobacco Growers' Cooperative Association was the loyalty, zeal, and 

 untiring efforts on the part of many of its members, directors, and 

 officials, and other proponents of cooperative marketing. Many of 

 the members were loyal in the face of certain loss and defeat. Many 

 of the directors and officials unselfishly gave all of their available 

 time and effort to make the association a success. Advocates of 

 cooperative marketing who were in no financial way connected with 

 the association and who received no salary or other compensation 

 gave their efforts solely to improve the economic conditions of the 

 farmers of their States. 



With these and many other men still believing in the principles 

 of cooperative marketing, it seems inevitable that the cooperative 

 marketing of tobacco will in time return to the tri-State area. A 

 new T organization should benefit by the experience of the past. It 

 should be on a different organization and operating basis and should 

 develop a somewhat different relationship with tobacco manufac- 



