The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-19
what Is the solution Of the Cotton
problcmp

Public attention must be increasingly
focused on the distressed situation IN
cotton hv tho efforts 1T southern SenG-
tors and Representatives to prevent an
adjournment Of Congress unless or until
some Governmental action Is taken
looking tn the effective relief Of the
cotton growers.
There are other lines II industry and
trade which are suffering from the Ia
ropenn war. and IL would be a miStak"
to allow the cotton problem to monopo-
lie public notice hut the cotton prob.
lem is undoubtedly serious.
The South has this year raised al
most If not altogether the largest CROP
OF cotton in It's history. lts prosperity
is very largely dependent on finding
market for this staple. and II would
not be- oversating the fact 10 say that
the war has deprived the South Of fully
third the immediate market foi
cotton which It would otherwise have
enioyed. 1t is estimated that on a.
count Of the size Of the crop and IN"
loss OF foreign markets there Is II sur
plus Of perhaps five million bales for
which no present consumptive demand
appears As result the price of spot
cotton has fallen under seven cent? a
pound. or far below the ten cent lcvc!
which the South contends IS approx
mately the cost of production under
establis shed conditions
Ii is not surprising that the South,
holding the ideals which 1t ent"rtninS
about the cotton exchanges aud the
deslrability Of ahollshing them, should
address violent appeals To the Govern
ment for uneconOmic assistance at this
iuncture. but the violence of It's appeal
has diverted energies from the right
line Of action.
Precedents which Secretary MCADOo
has done most to create have returned
10 plague the Administration in tn" sit
uation in which cotton now finds Itself.
Representative HENRY Of Texas. who IS
the most aggressive Of the campaignerS
for the adoption Of pernlciouS courses
Ivy the Government to deal with tn"
distressed cotton grower, has shrewdly
invoked Mr.. MCADoo's handling Of GOV
vertlsement which Mr.. MCADoo has
Given of the Treasury as II protector
Of prosperity.
While the buy bale movement Is
an interesting incident OF the cotton
crisis II has never from the beginning
held ont any promise Of being reaI
solution OF the cotton problem. on any
{, a, In
latlvr shifting of heavy load, certain
to interfere sooner or later with th'
natural reimbursement of prices
The campaign for the purchase OF
cotton goods has II much better eco
nomic basis in that whatever tends I,
promote the consumption Of cotton by
manufacturers tends to a restoration q
the market which the cotton grower
needs Also It recognizes the spinner
interest M well ms the growers, r.
the extent that Il supplies an arIihcia
stimulus ii might In the end bccom
troublesome.
More is to be said in behalf of tn
plan adopted AT IA conference Of hanl;
ers in St Louis and approved in prin
cple by the Federal Reserve Boar
for the formation Of Sl1uWN,un
banking pool to be employed in iinanl
ing the apparent surplus Of cottp
through loans II would seem TIA
this project would he most useful rs -
auxiliary 10 the reopcniug of the cot
ton exchanges, rs II would guarantee
financial provision for the accommod
ton Of large purchases for future dc
livery, Otherwise It is open 10 cri,
cism ms scheme for tn" yalurizatio
of cotton by private enterprise, whlc
can only he considered as somewh0
less dangerous than Government VA
orization would be.
So far also there is no evidence thG
the South Is at all enthusiastic oy,
the plan Of the bankers which cunlrn
plates six cents pound as the ioa'
able value of cotton, What the go
ton grower is after is not bank loa,
based on business Judgment rs to VIII
cotton may be worth for credit pu
poses, Judgment which expresses /
self In the suggestion OF six cents
pound. This looks 10 him like pcsgI
cotton a. low price when he wan
70 nave II begged At n high price,
he Is all for the relief which Cover
ment may bc persuaded by polite
pressure to extend to him.
Accordingly the chief proposals {
spiut'on OF the cotton problem whi
have cmanated from IN" South ha
bnen those contained in Compression
bills for the Government purchase
cotton or Government loans upon il
directly through banks or directly
the issuance of currency from [
Treasury. The reasons why the &C