Arizona republican., 1917-04-18
COTTON MEN TO
 AID GOVERNMENT
(By w. w. Morrison, of Hermann &
 Wolff

The government has made it plain that no exorbitant profits will be paid This should not convey the impression that there is any doubt about the patriotism of the railroads, the labor unions, the banking, manufacturing and commercial interests of the coun- try, or about those engaged in agri- cultural pursuits. The patriotism of all these citizens has been established beyond question. As it relates to our section, we are perfectly confident | that every bale of cotton in the south today and all that may be grown the coming season, would be sacrificed without reservation should the de- fense of the nation demand it.
 This attitude of the government, however, is apt to be construed as a menace to bushes prosperity if it's true status is not fully understood. The nations economic efficiency is an item of the very first importance in national preparedness. It is generally accepted that this efficiency can only be main tained on a profit earning basis. The government indicates it's full recogni- tion of this principle by making allow ance for a reasonable profit in all of it's contracts. While this forecast that | the cost of production will be carefully | investigated, it also forecasts that the prosperity of all firms having transac- tions with the government will be carefully considered.
 | As it relates to cotton, the detailed figures given in our letter of March IF indicate that the cost of growing cotton today is about double what it was when prices were from 10 to F cents. Or in other words, 20 to 25 nDte lN 1~lr profit on the present cost of produc- tion. It is evident that the govern ment is taking this view, as it's agents | only few days ago gave out the statement, that the purchasing power of bale of cotton at the time prices were 12 cents was greater than the purchasing power is now with prices at 20 cents.
 After all, war contracts will absorb comparatively little of the supply ! There will be many million bales whose price will be fixed without the | intervention of the government. Fixing this price will be distinctly an issue l between the producer and the spinner | The trend towards the raw material sharing more largely in the profits of the manufactured product, can be ex- pected to continue. The war is not
 
 | any material way. It is obvious how : ever that the war will give. the public more intimate knowledge of the cost of manufacturing the raw material | While it may appear somewhat para 1 doXical we believe this information will in the end conserve the interest of both the producer and the spinner | That exports are falling off, that there may be more than enough cotton to go around and what will become of the surplus, continues to be dis cussed. All this is neutralized by the ability of the south to carry the sur. plus. In fact. the producing interests fully realize that they may be called upon to do this at any time, and are fully prepared to meet it. They realize too. that our entering the war points to a great shortage when the war ends | They are also financially equipped ant can be expected to largely share il the profits commensurate with sucf a shortage. The records certainly support this view, and emphasize tn, importance of taking it into all oul calculations
 A program of economy affectins
 every detail of individual and publi,
 life can be expected It will sharpl,
 react on luxuries. It is not likely
 however, to affect staple necessities
 unless the price shows an unreason
 able profit on the primal cost of pro
 duction. The producers of food ant
 cotton have no right to expect more
 We do not believe that they do 4
 material decline in cotton seems i'm
 probable, therefore, unless there is like decline in food products, labor an, live stock which definitely enters int what if cOSt f0 QrOw
 Summed up, events indicate no bur
 densome surplus while the war lasts
 They do indicate an acute shortag
 when it ends.