ee 
49 BULLETIN 1392, U. S. DEPARTMENT OF AGRICULTURE 
poses. An example of the other type is the Texas Cotton Growers’ | 
Finance Corporation, which confines its activity to taking up mort-. 
gages where the security is ample and where the mortgagee would 
force the sale of the cotton in other channels. In Georgia four dis- 
trict corporations have been formed for production credit, the capital 
stock of three being owned by farmers, and in the fourth by farmers 
and banks. A fifth corporation, in which the stock is owned exclu- 
sively by the association, has been organized to finance the delivery 
of mortgaged crops. 
In entering the field of production credit, through these subsidiary 
or accessory corporations the associations propose to make credit 
available through the intermediate-credit banks only in instances 
where local bank facilities are inadequate or where the banks for 
other reasons do not supply the needs of their members for inter- 
mediate credit. 
SELLING 
Each association, with the exceptions previously mentioned, has a 
sales department or division, with an experienced cotton salesman in 
immediate charge. The practice of maintaining sales agents and 
brokerage connections in different markets and the extent of this 
representation varies in the different organizations. Some have their 
own agents and representatives in both domestic and foreign spin- 
ners’ markets, although the 13 associations affiliated with the Ameri- 
can Cotton Growers’ Exchange, with one exception, use in part or 
exclusively the foreign offices and representatives maintained by the 
exchange. Some use its sales service not only abroad but in all 
domestic markets outside of the States in which they are located. 
Membership in the exchange makes its general sales service avail- 
able, but does not restrict the member to its use. At the present time 
the member association may sell all, a part, or none of its cotton 
through the exchange. If cotton is offered through the exchange, — 
bids are obtained from buyers and transmitted to the association, its 
confirmation in turn being transmitted to the buyer. In any case 
the association has the privilege of naming the price at which its 
cotton is to be offered or of rejecting any bids obtained by the ex- 
change. When sales are made the individual association assumes 
full responsibility and handles directly shipments, billings, and any 
claims for adjustments. 
Cotton is sold on sample, on type, and on description. Buyers 
may visit the headquarters of the association and purchase any quan- 
tity after inspecting bale or type samples; they may inspect sam-_ 
ples sent to spinners’ markets and make their purchase by mail, tele- 
graph, or cable; or they may buy on description without samples. 
The sale on type is most extensively used, the type samples repre- 
senting a grade, staple length, and character of cotton, but no par- 
ticular bales. 
Sales are made for immediate delivery or for delivery in desig- 
nated months. The agreement regarding each sale, especially those 
for forward delivery, describes the kind and quantity of cotton, the 
month or months of delivery, the futures market and the futures 
month on which the price is to be based, the “on” or “off” to be 
allowed, the party who has the right to call the time the price is to 
