New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-15
No Cotton VaIorization.

WHY should the United States government va
or,ze cotton as is projected in the proposed sienu
mont n the war revenue bill, any more than s'ooAS
and bondsg As reason for the purchase or COTTON
nv tho government It is urged that war crisis III
d creat industry affecting a large section EXISTS
,d that the suffering II the price Of cotton Is nov
,,o,,.,toed will be enormous. The cotton crop mas
heen raised with the usual European deln"uu III
,,o,r That demand has been largely cut off by
,bo war Therefore. It is argued the government
should lend its credit in aid OF the COTTON pro
ducer In the same way the European market Ior
American stocks and bonds has been destroyed
Millions Of dollars I'm shares MATT on the other s'ue
In be DUMPED here a. soon as the opportunity J."
so,l them exists The interests arected arc even
vsster than those Of the cotton growers panic
might spring from the mishsndling OF this sl'ua-
,,on II the government should buy the cotton
which Europe won't absorb. why should II not also
huv the stocks which Europe won't holdF
The South is. OF course, deserving Of the fullest
svnnatbv IN this emergency And the utmost that
may safely be done for its relief should be done
II could not foresee the war, and It's prosperity IS
,vrapDed up I'm the marketing of It's cotton at
,.ipe rricc It's loss will be the nations loss TOR
fine uroerority Of all sections Of the country IS In
evtricably related. and section cannot sun It
without the rest in some degree feeling the conSe
oaeuces Of its misfortune. And in the present crlt
,,al situation II will he to the advantage OF the
whole country that the shocks and dislocations or
industry existing anywhere and everywhere as n
result of the war shall be reduced as much as
possible.
Rut when We have said all this we are very far
nor,4c oh Orfl0
upon dangerous experiments IN the use Of Its credit
or its currency for the benefit of any Industry OF
ou industries suffering from the war. This pro
uosed government purchase OF cotton is essentially
nothing but the valorization scheme that Brazil
trad with unfortunate results I'm the case Of coffee
We can see no prospect in IT but loss for the gov
ernroett and weakening Of its position in regard
90 similar paternastic devices that will bring on
.eyarer losses in the future We have faith that
tho Government. II II should lose by holding Eu-
ropes supply Of cotton until Europe was ready TO
take # would ever be able TO throw its losses back
ON the Southern states by taxation. A popular
government does not work that way Nor have we
any confidence in the proposed government imlta-
ton Of planting next year, by which production
could be kept down, so that next years crop and
This wears surplus would be readily absorbed. The
limitation would be hard to enforce And II the
government I'm one instance stood ready to finance
the cotton crop the natural pressure upon the
rlanter 10 reduce the acreage next year would be
removed The South would look to the nation to
helm II again If production was not curtailed sufi-
GENTLY and II the European war lasted longer than
was calculated or If the prostration Of the Euro
uean market surpassed expectations.
There will be real gain to the South II II
ms not to depend TO the extent It now does upon
cotton It will not learn this lesson If the national
government stands ready to guarantee It against
loss while II continues TO plunge upon this single
staple It will he best that the relief Of the South
should be left her banks and 10 Individual enter
prise. These ire already making progress In meet
ing the situation Any government assumption Of
the task will mean dangerous misuse of the ma
tlons credit or impairment Of It's currency Ant
the abuse will not end with the present emergency
The pressure for government aid to producers dis
appointed about prices will not end with the war