This is my working hypothesis - the way I see it as of this moment!! 
looking for male line Cotten/on desc. to take part http://cottondna.family.nf/ 

from Clipping from the Montgomery Herald, Troy NC, 26 April 1956.
of address by Colonel Jeffrey F Stanback at unveiling of Cotton Markers in Stanley County NC 1956:
  "The first of the Cottons in this section of the state was James Cotton who came down the Valley of Virginia some time before the Revolution, and settled on the east bank of the Yadkin River . . .Caruthers says he [James Cotton] was 'a man of more intelligence than any other in the region and very influential among the Scotch and Regulators.' Mr. Cotton owned some 40 farms from Cumberland to present Stanley county. He maintained an ordinary [or tavern] at his home, a grist mill, ferry, distillery and other improvements. His home was on a very high bluff overlooking the river. James Cotton Sr was one of the five Anson county judges of the county court, he was the county surveyor, tax lister, commissioner of weights and measures and was appointed county register in the early seventies.
   "Governor Josiah Martin appointed James Cotton a lieutenant colonel of the Loyal Militia of the British Forces early in 1776. He raised, equipped and fed some 500 men mostly out of his own funds for which he was never reimbursed by the British Crown and only received a small pittance for his personal and real estate losses by the Patriots. Colonel Cotton marched his Anson county troops to Moore's Creek bridge but arrived late and was not involved in the fighting. He was able to escape and finally returned home where he kept a small guard for awhile. Later he was ordered to Hillsborough but released. Before he reached home new orders for his arrest were issued and Colonel James Moore sent after him with three companies. Cotton had to hide out and nearly starved. He finally escaped and fled to Florida. He later went to New York and never returned home, so far as has been found.
    "The Patriots burned Colonel Cotton's home, mill and barns. His family had to seek refuge with friends. His wife was finally allowed to rent from some of the property of her husband for the benefit of the children. She soon died and Thomas, James, and a sister Margaret were bound out to be raised, learn a trade and for schooling.
    "Although their father was an active Loyalist and suffered great personal losses because of his beliefs, James and Thomas Cotton joined the Patriots' Army as soon as they were able to bear arms.
    "According to state records of North Carolina by an Act of 1777, the lands of James Cotton, Sr. were declared confiscated and directed to be sold. The General Assembly took note that James and Thomas Cotton who "Have all times since they became of age to act for themselves, behaved as good and faithful citizens and on occasions exerted themselves in the defense of their state and liberties thereof, and whereas justice and humanity forbid the involving of innocent and deserving with the guilty, be it enacted, etc---all real estate and personal property of James Cotton be returned to Thomas and James Cotton.". . .
  included in Peggy H Gregory's "Cotten Picking"

"The early deeds to Col. James Cotton list him as a resident of Augusta Co, VA."[JFStanback] 
Forced to leave the country leaving his family behind as he remained loyal to the crown during the revolution. His wife Margaret died ca 1778 and James married in England ca 1779 Ann Hall.
She was the daughter of Robert Hall, minister in Arnsby, Leicestershire, England. 
 Col. James Cotton died 22 Dec 1785 in Jamaica, British West Indies with will.

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e-mail from Marla Webb - found some information that you might be interested in regarding James Cotton the loyalist.  I have a Leonard Cotton as his father. He came early to settle in America.  He is mention in the will of his father; Thomas Cotton of Hampstead, Middlesex County in England.  Thomas Cotton's wife was Bridget Hoar. Her father was Leonard Hoar and her mother was Alica Lisle. Here the copy of the will:

Thomas Cotton, of Pond Street, Hampstead, in the County of Middlesex, gentleman, 9 May, 1730, proved 11 August, 1730, by Bridget Cotton, his widow, and Thomas Cotton, his son. To dear wife MTM Bridgett Cotton, who for many years has been a dear and tender wife to me and a faithful partner with me in all my joys and sorrows of life and a tender mother to all my dear children, &c. I appoint her executrix, in conjunction with my son Thomas Cotton, as soon as he shall become of age, which will be, God willing, on the 20 July next ensuing. To wife I give and bequeath whatever money, bonds, leases or estates that yet belong unto me in any wise upon the death of our dear Honoured mother, MTM Bridgett TJ. Slier, late of Boston in New England, left in trust with the Honoured Judge I Sewal or others. At her decease all my effects, &c. to be equally divided between our two dear children Thomas Cotton and Alicia Cotton. For, as our eldest son Mr Leonard Cotton wherever he at present is has long ago received from me far above the property of worldly goods I had to bestow upon my children, I only give him ten pounds.

(Thomas Cotton was a minister)

This comes from the Genealogical gleanings in England, Volume 1 by Henry Fitz-Gilbert Water, New England Historic Genealogical Society.

Also from notes in the New York Genealogical and biographical record, Volume 30 comes this information

Leonard Cotton in Newburyport after 1700, moving to Virginia about 1739.

I have found records for his son ,if he is his son, the Loyalist James Cotton in the Scotch Irish records being a teacher in Virginia.  And then transporting to Anson County North Carolina.

Well that is what I wanted to share with you.  I guess it would be a good idea to find the original or microfilmed original will of the Thomas Cotton.  All the names of the James Cotton loyalist family seem to fit in with the names of this family. Marla 

Children of James Cotton and wife Margaret:
1. Thomas Cotton 1762 - 1832 Montgomery Co NC
            buried near Uwharrie, Montgomery Co NC --- Served in the Militia during Revolutionary War
     married ca 1784 Anne Boleyn ca 1767 - ca 1839 Montgomery Co NC
             name also spelt Bowlin, Bolin, etc
2. James Cotton ca 1762 - he had issue
 [he was the County Surveyor of Montgomery Co in 1792. In 1790 census he is shown married with a son. He is said to have lived later in Chatham Co and maybe died in Stanley Co NC. His grave is beside his brother's in Montgomery Co NC] Served in the Militia during Revolutionary War
3. Margaret Cotton nfi

Children of James Cotton and wife Ann Hall
1. Mary Cotton ca 1780 England -
2. another child born bef 1784 move to Jamaica and dead bef July 1786
3. third child  ca 1786 -
 Ann was big with child when she asked that her husband's pension be restored. 

Thomas Cotton 1762 - 1832 | his parents
& ca 1784 Anne Boleyn ca 1767 - ca 1839 | her parents
of Montgomery Co NC

Thomas Cotton served in the NC Militia during the American Revolution.

Children of Thomas Cotton and Anne Boleyn:
1. James Cotton
2. Rev. John C Cotton ca 1803 - 1852  Clinton, Hinds, MS dsp about the age of 50
               left siblings large land holdings in TX
3. Rachel Cotton
     married Lingurn Birkhead
4. Alicia Cotton d. 1852 Freedon, Harrison Co TX
      married Mr. Loftin
5. Margaret Cotton d. 1836 MS
6. Lucinda Cotton
       married Mr Harris?
7. Thomas Leonard Cotton 13 July 1798 - 27 Jan 1872 Montgomery Co NC
       married 12 Dec 1826 Letha Coggin 2 Sep 1805 - 11 July 1873 Mont. Co NC
8. Matilda Granbury Cotton 21[4] Feb 1802 NC - 26 Sept 1873 Gregg Co TX
       married Amite Co, MS 7 Dec 1823 Job Taylor 25 Feb 1802 -
                   ancestors of Priscilla Clay  
9. William H Cotton 6 Aug 1818 NC - 1889 Fairfield, Freestone TX
            was a Mason, a dry goods clerk and Constable in Fairfield TX
       married Mary Holand? 5 May 1823 MS [or LA] - 3 Oct 1899 Fairfield TX