The commonwealth. (Greenwood, Miss.) 1896-1923, 1916-05-26
SENATORS VIEWS AS TO HIGH PRICE
OF COTTON.

OC COllON.
Washington, May 20 Senator John Sharp
Of South Carolina, two of the largest cotton planters
in the National Congress-, discussed today for The
Commercial Appeal the high price of cotton with
to conditions indicated by spot and future
at the close yesterday in the leading do
mestic markets. Their comment was inspired by
the effort OF a few editors in the east to discredlt
those Southern senators and representatives who a
year or so ago urged upon the secretary of the
treasury to aid in some practical plan to shield the
OF the staple against the then threatened
disastrous effects of the European war. One editor
in particular concluded his criticism today with this
jab:
Comparing the predictions of those days with
the prices of today, one wonders just what certain
states must think of their statecraft that
represents 1t in Washington"
Senator Smith attributed the high price of cot
ton chiefly to two things. First, the trade mis-
represented and misled the producers as to the de-
mand for their staple; also that under the federal
reserve act many cotton farmers availed themselves
OF the privilege of storing their cotton and borrow
ing money on it at a reasonable rate of interest.
Second, the trade" now realizes that the demand
for cotton will exceed the stock OH hand. Senator
Smith also suggested that the trade" had given
credence to the recent peace rumors and felt that
hostlllies in Europe were about to cease.
Senator Williams does not even see a glimmer
OF peace in Europe, but believes that the horrible
war will go on until one Of the strong beligerent
powers at least is made to suffer much more than it
has endured up to this time. He also predicts that
l1HG1E VIII u d SISut all III lii price OF COtfOn WIN
the coming OF peace: Continuing Senator Williams
said:
The present price of cotton, which is IS cents
at Memphis, (and | take Memphis because it is a fair
the pessimists prophesied. This is due to the fact
that there was last year a small crop compared with
the demand. 1t is due. in the second place, to GER
tain increased demand for war purposes. Just how
many bales of cotton have been used and are now
being used daily in the manufacture of high expl J,
sives we do not know, and probably never will
know accurately, but a vast of amount it. Such cot
ton as LAS in Germany before her markets were
closed was nearly all used for war purposes. The
allies have used an immense quantity OF it.
One curious feature about the market is almost
inexplicable; for weeks and weeks now cotton has
been higher at Memphis and at Houston, and at
other interior points, than at New Orleans. On
very many days Of the time it was higher at Mem
phis than in New York. l think this Indicates the
only disturbing element in the situation. Nearly al
the cotton sent to New Orleans and other seaports
was for export. The lack of shipping facilities tc
carry it across the waters gave the bears an advan-
tage locally. If the ship purchase bill had been
passed when It was before the last Congress this
difficulty, ! think, would have been obviated, anC
the usual difference OF price in favor Of the export
towns would have been maintained.
Cotton tumbled soon after the war broke on
because the mastery of the seas was in dispute;
German cruisers were still at large, and it was by nc
means certain that shipments could be protected
from them. After the main transoceanic highways
had been cleared of danger and the allies had come
into complete complete command of the seas, the
most disturbing element, fear of destruction of car
goes and consequent enormous rates of marine in
sDrance, disappeared although there still remained
the fact that there was q paucity of ships owing no
only to the absence from the traffic of the German
and Austrian tonnage, but owing to the fact that sc
much of the British and French and afterward tn
italian tonnage was taken by the several allied gov
ernhsents, either for transport and other war pur
poses, or for allied governmental purposes.
Our law permitting the government of tn
United States to insure against war risk also helped
to steady and improve things.
There has been nowhere, except in German,
! and Austria, that decrease of cotton manufacture
which was anticipated by the prophets of evil. I'm
less the Southern people are very foolish and ru1
wild because of the high prices and unduly increase
their acreage, We have the best reason to hope TO
good things.
Il think that with the coming of peace, othe1
things remaining as they are, there will be a sligh
fall in the price of cotton, perhaps not Immediately
but soon. IN this OPINION however, | do not seen
to be joined by very many"