COOPERATIVE MARKETING OF COTTON oF 
bers during its first two years, amounting with interest to $860,000, 
and for placing its advance fund on a revolving basis. Some of 
the other associations are considering also the plan of maintaining 
their reserves on a revolving basis rather than of holding the ac- 
cumulated amounts during the life of the organization. 
In its four years of operation the Staple Cotton Cooperative Asso- 
ciation has accumulated reserves of over $1,800,000, made up of 
$1,552,258 in its so-called advance fund and $270,144 in a contingent 
fund. At the close of the 1923-24 season the Texas association had 
reserves amounting to $487,614; the Oklahoma association about 
$219,200; and the Georgia association $177,253. Although the 
amounts are not yetas largeas are desirable in most associations, they 
have been of decided value in financing operations and in strengthen- 
ing the positions of the associations with the trade and with credit 
organizations. 
ORDERLY MARKETING 
The principle adopted by the cotton cooperatives in distributing 
their sales more or less evenly throughout the year rather than in 
concentrating them in the fall months has been called “orderly 
marketing” by them. Through adherence to this principle it is the 
purpose of the associations to (1) reduce the volume of early selling 
and thereby eliminate or minimize any unsatisfactory results of the 
practice known as “dumping,” (2) stabilize prices by selling at such 
times and in such quantities as cotton is needed in consumptive 
channels, and (3) obtain a price for their members which will 
be approximately the average price for the year. 
It is generally known that cotton farmers, acting individually, 
market the bulk of their crop in a short period of time. Based on 
a 10-year average, 1912-1922, it is estimated that they sell 12.8 per 
cent of the crop in September; 21.2 per cent in October; 19.4 per 
cent in November; and 14.2 per cent in December; or a total of 67.6 
per cent of the crop in four months. This concentration of sales 
between September and December, inclusive, has been made neces- 
sary to a considerable extent by the growers’ financial obligations. 
Sales of “distress” cotton are made regardless of the fact that the 
supply offered is in excess of immediate mill requirements and re- 
gardless of prevailing prices. 
American mills buy throughout the year, but their heaviest buying 
occurs from September to January. A number of large mills pur- 
chase half of their supply in the harvest months, and some purchase 
their entire supply at this time. Although a few mills may buy for 
immediate delivery, as a rule they do not carry a large quantity of 
cotton on hand, but purchase “on call” for shipment in designated 
months. 
Sales by farmers of a larger quantity of cotton than is desired in 
consumptive channels means that purchasers of the excess must 
assume the carrying risks and expense. The cost of the service ren- 
dered by the trade is necessarily a factor in the price. Storing and 
holding cotton does not necessarily result in profits, but there are 
always definite costs. The cooperative associations in their market- 
ing program assume as producers the expense and risks which have 
been assumed by the trade under other methods. 
