The midland journal. (Rising Sun, Md.) 1885-1947, 1918-12-06
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department OF agriculture
speak from accurate and first-hand information
in making the statement that there has not been
from the beginning, is there now, any set
purpose or desire to fix cotton prices There has
not been from the beginning, nor is there now, the
belief among those in responsibility that price
liking will be necessary war measure-cer-
tainly it never was contemplated, nor could 1t be
justified on any other basis. 1t has been con-
sidered only possible necessity, dependent
upon the information to be gathered.
"But there are several reasons for a cotton in
quiry.
"In the first place, there have been marked
fluctuations many times during the last few
months, and more or less since the beginning of
the European war, without justifying economic
reasons. Repeatedly the market has risen more
than hundred points and reacted as much or
more within few hours. There have been vio-
lent breaks, reminding one of the slump at the
outbreak Of the war, and in no single case has
the movement been justified by any real fact of
trade Importance All such irrational fluctuations
are extremely hurtful to producers and legitimate
traders and manufacturers
"In the second place, often and almost con-
tinuously during the last few months contract
quotations have been out of normal relation to
spot quotations-and generally have tended to de-
press TO discount the trade value Of real cotton.
I'm the third place, the prices Of cotton goods
have been advancing for four years out of all
proportion to the prices of cotton. Contrary to
popular impression outside of the cotton belt cot
ton prices are not out of line with prices Of other
staple commodities. For instance, on July i, 1914,
the average price of wheat to the farmer was
769 cents; on September 1, 1918, under govern
ment control, 1t was $2.O5-an increase of 167 per
cent, On the same dates the prices of cotton were
12.4 and 1922 cents--an increase Of 100 per cent
The average increase on farm products has not
been so great, but the average of manufactured
products Except those regulated under war pow
ers) has been as great or greater One OF the
most interesting comparisons is found in the price
Of cotton goods. I quote from Bradstreets.
Wholesale Prices of Cotton Goods.
Aug ,sg. /. Aug Jug l, Avg ,Sss l.
s snf E1s sSeetnr 1oston OTIS 1855 .2Os75
Gnghams, AmOsfeag. Staple (BostOn,.. .oe7S lo 22o
Here are increases of from 261 to 1888 per cent.
"In the fourth place, it developed few weeks
ago that there is rather a scant supply of cot
ton of the grade of middiing of 1-inch to 1 1-16-
inch staple and an abundance Of low-grade cotton
on the one hand and extra staple (such as Ari-
iona, Georgia and Florida Sea Island) on the
other. The European countries were in the mar
ket for the small supply of middling and the
SPECTATORS were contracting for it, while the
producers of low-grade and extra-stape cottons
found few buyers. The cotton market was out OF
Joint Several months ago the department of ag-
riculture foresaw this precise situation and urged
the modification Of war goods specifications In
order to increase consumption or low-grade cot
tons, but it takes a long time to readjust COM
mercial and manufacturing customs because all
men are prone to maintain habits, and spinners
are averse to mourning trouble or reducing profits.
"But when the new crop began to come to
market the war Industries board deemed 1t neces-
sary to take some action for adjustment.
chairman Baruch of the war industries board
did me the honor to consult me. in the absence
of Secretary Houston about the details OF the
mis- 10 Ind decided to adopt by constituting
committee of inquiry and committee OF distribu-
ton. For quarter of century have given
more or less study to the economic aspects of cot
ton, and cannot recall time when the cotton
farmer was injured by the revelation OF the
whole truth about cotton supply and demand. ne