Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-21
The Great Cotton Gamble.

The great cotton speculation. to which
Secretary Wilson called attention 50 forci-
bly, yesterday in the course of an interview
with Star reporter. is of much more
serious consequence than the average cit
izen is likely to appreciate. Few individ-
uals in this part of the country are directly
affected by this gigantic gamble The re-
tail price of manufactured cotton Is as yet
but slightly increased by the closing OF
the mills. and few II any neighboring IN
terests are thus far touched by the throw
ing of thousands of men out of employment.
Yet such condition as that to which the
Secretary applies the force of his condem-
ration must eventually affect every indus
trial enterprise. The whole tone Of the ma
tionaI financial condition is lowered by so
serious a disturbance and the welfare of
the countrys export trade is menaced
The trouble arises from the ability of
few men to corner the visible supply of raw
cotton. They accomplished this In the
spring. and in consequence sent the price OF
that commodity soaring beyond the range
of profitable manufacture. AS Secretary
Wilson points out. the manufacturers can
not as easily manipulate the market for the
finished product as can the cotton brok-
ers that for the unmade material. and
they nave Deen COIHpeiltu III Scil-uCiOhSo
TO do two things. first close their mills
and check production in order to avoid the
purchase of costly raw material. second to
sell out their holdings Of raw cotton to take
advantage of the unnaturally high prices.
No blame can well be laid at the doors of
these men. who have merely obeyed the
law of the market and have sold where
they could to their best advantage Even
how hnId m n q
material they could not profitably continue
to manufacture it. The closing of the mills
had to follow the abnormal rise.
The chief sufferers by the corner are the
workers in the cotton mills. Next to them
are the consumers of cheap cotton stuffs. to
whom these goods a necessity in almost
the same degree as food. Next are the cot
ton producers. who have made no extra
profits from this corner and who will find
the market in a state of collapse when their
next crop comes. From all these classes
flow losses to every trade with which they
have dealings. Beyond this range OF dis
tuIbance is. however. an even more serious
one, affecting the interests of the American
exporters, who are already finding Europe
active in an effort to supplant the American
raw and manufactured cotton with their
own Secretary Wilson clearly indicates
the danger which lies in this direction, as
disclosed by the activities of foreign grow
ers and even government agents. 1t will be
a serious blow to our export trade If the
United States were through the selfish folly
OF few spectators to lose command Of the
worlds cotton market.
At present there Is no specific remedy in
statute law for such disturbances of the
economic conditions. corner in any nee
essary of life is condemned by the common
law, but the agencies for applying this
remedy are not quickly or easily available.
The corner is comparable with that of a
season or 50 ago in beef. but as the legal
phases of that experience demonstrated
there is urgent need of more direct means
of checking the gambling enterprises of
those who juggie the prices OF great COM
modites. The public can at present only
rest in the hope that the market will soon
take one of it's characteristic turns and
swOOping downward squeeze the financial
life out of the men who have played with
the welfare of thousands of others and the
trade prestige of the country.