SERVICES IN COTTON MARKETING 29 
pressing have their effect on cotton marketing. The tariff and other 
rules governing the importation of cotton may greatly affect the 
industry or a part of it. 
With the multiplicity of pests affecting the growing of cotton, 
Congress deemed it desirable to have stringent laws governing the 
fumigation of raw cotton or cotton waste. A cotton merchant, 
for example, who is importing types of cotton, or is receiving re- 
turning types which he has previously sent out, must receive such 
cotton through fumigation plants established at certain ports for 
the purpose. 
Satisfactory regulatory measures must supply needs that can not 
well be served otherwise. They must be definite, easily understood, 
and fair. They must be enforced impartially and intelligently. 
FINANCING COTTON MARKETING 
Credit is an important factor in the production and marketing 
of cotton. It is required for the processing and moving of cotton 
through the channels of trade and in carrying supplies from season 
to season. 
FINANCING THE PROCESSING AND MOVEMENT 
The movement of cotton requires two types of financing. The first 
relates to the financing of ginning, transporting, classing, and ware- 
housing. Lack of adequate finance to build and equip the plants may 
affect seriously the efficiency of cotton marketing. The readiness 
with which finances may be obtained to build gins, warehouses, and 
compresses depends more on business conditions in general than on 
conditions in the cotton industry alone. 
In most cases the ginner buys the cottonseed from the farmer. 
The value of the seed varies greatly, but runs from about $15 for 
the 1,000 pounds to as high as $25 or $30. The cost of ginning a 
bale may be as low as $4 in one section and as high as $8 in another. 
The seed more than pays for the cost of ginning, but if the farmer 
does not sell the seed he must pay the ginning costs in some other 
way. The ginner may grant credit until the cotton is sold, or the 
farmer may borrow the money if he does not have it and can get 
credit. 
Gin and warehouse services are usually paid for in cash on the spot, 
though payment is not always required until the cotton is sold. 
From the time the cotton leaves the farmer's hands in the local 
market the costs of performing the necessary services are paid 
directly by either the buyer or the seller. Freight must be paid at 
the time cotton is billed or immediately upon arrival, but insurance 
premiums are usually required in advance. Storage may be paid 
in advance, monthly, or at the time the cotton is sold. Such charges 
are customarily paid out of money borrowed on cotton. 
FINANCING THE PURCHASE 
The amount of money required to finance the purchase of cotton 
is large. The crop of 1923 sold for about $1,500,000,000. The length 
of time required to deliver cotton from the local market to the 
