COOPERATIVE MARKETING OF COTTON 29 
A study of the distribution of sales by months by the several asso- 
--clations indicate that, contrary to public opinion, they market a 
rather large proportion of their receipts in the fall months. The 
figures in Table 3 show that in the period from September to De- 
cember, inclusive, the Texas association sold 23.1 per cent of its total 
1922-23 sales, and 44.7 per cent in the 1923-24 season. In the 1922-23 
season, during the same period, the Alabama association sold 19.2 
per cent, the Arkansas association 27.9 per cent, and the Oklahoma 
association 52.3 per cent. In the four years of its operation the 
Staple Cotton Cooperative Association has sold on an average over 
40 per cent of its cotton in the same period. 
The amount of early selling by the cooperatives indicates that, 
instead of holding cotton until after the so-called “ dumping” period, 
they consider it advisable to dispose of a substantial part of their 
receipts by the last of December. Although a number of factors 
influence their sales policy, their action in selling in the fall suggests 
that the actual effect of “dumping” is not as serious as it is gen- 
erally presumed to be. According to popular belief, the rapid mar- 
keting of the crop by farmers creates an excess over consumptive 
demands and a congestion that results in a seriously depressed price. 
If this is true, the plan of orderly marketing to relieve congestion 
and prevent the attendant price slump, other things being equal, 
should cause the associations to reduce the volume of their early 
sales; if not true, their present practice may be desirable. 
Without attempting in this discussion to measure the exact in- 
fluence of rapid marketing, or “ dumping,” it can be stated that the 
best figures available do not substantiate the common belief that a 
serious price decline occurs simultaneously with heavy marketing in 
the fall, and that there is an upswing when the movement ceases. 
A study of seasonal and annual average prices of New York futures 
and middling spots for the 20-year period, 1904-05 to 1923-24, 
although showing some advantage in the annual average, does not 
demonstrate the regularity and seriousness of an “autumnal dip.” 
A study of the average prices received by farmers on the first of 
each month since 1913-14 indicates no positive price advantage to 
farmers who consistently hold their cotton until after December. 
In order to carry out their orderly marketing program to the 
extent of stabilizing the cotton market, the associations need to 
control a much larger proportion of the crop. For price-making 
purposes the supply may be said to include the current crop, the 
carry-over from the preceding crop, and the anticipated size of the 
next crop. Prices are based on world supply and demand. Inas- 
much as the associations control only approximately 10 per cent of 
the American crop, and propose to market this more or less evenly 
within a period of 12 months, they are not in a position to exert a 
materially stabilizing influence on the base price. 
They have, however, been successful in carrying out their orderly 
marketing program as far as their own membership is concerned, 
(1) by reducing to some extent the volume of early selling by their 
members, (2) by stabilizing the market for their members through 
pooling and the intelligent distribution of sales, and (3) by obtain- 
ing for their members the approximate average price of the year. 
By operating annual pools and distributing sales throughout the 
