The Leader, enterprise and press. (Fitzgerald, Ga.) 1915-1921, 1917-10-08
EFFORT TO Use EMBARGO
TO Lower COTTON Price
HAS RESULTED IN FAlLORI
Cotton VIII Sell At Twenty-Five Cents a Pound
II Farmers Demand The Price, Says
Senator Hol1e Smith

the same thing, and they rushed to
sell cotton not yet picked. The result
was inevitable. The price fell.
Cotton was quoted around 70 cents
pound when the embargo was an
nounced. 1t sold off steadily until it
fell below 19 cents pound. 1t began
to look as if the men who raised the
cotton were to be compelled to accept
even smaller price for their product,
Notwithstanding that cotton at rs
cents per pound is cheap as compared
to the war prices of wool, wheat,
corn, sugar and other necessities.
The public, including the farmers,
accepted the statement of the manipu-
lators that the embargo was RESPONSE
bic for the fall in the price The
profteers waxed richer and richer at
the expense of the public's credulity
until 1t began to look as if there was
no bottom in sight for the price OF
cotton.
1t was logical enough for the public
to suppose that cotton was worth
much less than it had been selling
for II the market for 100000 bales
was to be shut off by the government
embargo. 1t was logical to deduce.
this being the case, that there would
be an overproduction
Senator Hoke Smith was the first
to call attention TO the deception be-
ing practised by the market manipu-
lators to depress the price of cotton.
1t is noteworthy that when the Geor-
gian arose in his place in the senate
and exposed the fallacy of the belief
that the embargo would affect $1,000
600 bales cotton was selling for be-
tween l8 and 10 cents a pound. If is
gratifying to observe that today. fol-
lowing the expose inaugurated bv Mr.
Smith, cotton again is steadily advan-
cling in price. The public understands
now that the available supply of cot
ton in sight is far less than the GER
| tain demand 1t understands also
that even at Is cents a pound the
parity between cotton and other me-
cessities, including wool, does not bear
an equitable relation. Cotton is far
too cheap, relatively.
In inviting the senate's attention to
the situation, Senator Smith showed
| first, that the embargo cannot posi-
bly, affect as many as 100000 bales of
cotton, and the chances are that it
Will affect none, since the embargo
contemplates only that no cotton
shall reach our enemies. It permits
continued export of cotton ito mem
trails contiguous to Germany under
such restrictions as make it certain
that none of the cotton thus exported
shall reach either Germany, Austria
or Turkey.
Senator Smith pointed out, more
over, that the American embargo as
to cotton simply relieves our allv.
Great Britain, Of duty she hereto
| fore has performed with respect to
the Southern product. He detailed at
length the methods heretofore used
by Great Britain in restricting the use
of cotton in the neutral countries CON
tiguous to Germany and displayed an
intimate acquaintance with every
phase OF the cotton situation from the
beginning OF the war to date, includ-
ing the use to which all cotton ex.
ported to Germany, Austria and neu-
trail nations has been put.
The Georgian showed, in addition.
that the world supply OF cotton is far
short of the anticipated demand.
Senator Hoke Smith was seen at
his home today, and asked for a
brief statement about the cotton stu
alton, every development of which
he has followed closely. He said:
The effort to use the embargo as
a means to lower the price of cotton
has been exposed and broken down.
"The trade fully understands that
during the past three years the world
consumption of cotton has exceeded
production 100000 bales, and that
the demand for our cotton during the
coming year will exceed production
and supply more than 100000 bales.
Compared with prices at which
wheat, wool, corn and other products
are selling, 80 cents a pound for cot.
ton would not be high.
Farmers will sell their cotton this
year for over 20 cents pound if they
appreciate the situation and demand
| the price,