Middletown transcript. [volume] (Middletown, Del.) 1868-current, 1918-12-07

I speak from accurate and first-hand Information
In making the statement that there has not been
from the beginning, nor 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
fixing will be necessary as a war measure-cer-
tainly 1t never was contemplated. nor could 1t be
justified, on any other basis. It has been con-
Ridered only a possible necessity, dependent
upon the information to be gathered
But there are several reasons for q cotton in
quiry.
I'm 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 4 hundred points and reacted MS much
more within few hours. There have been vio-
lent breaks reminding one Of the slump at the
outbreak Of the war, and In single case has
the movement been justified by any real fact of
trade Importance All such irrational fluctuations
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
"In the third place. the prices 0 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
prices not out of line with prices of other
staple commodities. For instance, July l, 1914,
the average price Of wheat to the farmer was
100 cents; September I, 1918, under govern
ment control, It was $2.O5-an increase of 1877 per
cent On the same dates the prices of cotton
1914 and 32.2 cents--an increase of 100 per cent.
The average increase on farm products has not
been great, but the average IF manufactured
products Except those regulated under war pow
ers) has been 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.
KIND 4 isIs T. A 1877. = A 1s's T.
stands u' shestins Boston o735 55 .2os75
Ginghams Amosfeag. Staple lBoston). .o67s 10 .22o
"Here are increases of from 261 to 1888 per cent
I'm the fourth place. it developed few weeks
ago that there is rather scant supply Of cot
ton Of the grade Of middling Of 1-inch TO 1-16-
inch staple, and an abundance Of lowgrade cotton
on the one hand and extra staple (such Ari-
zona Georgia and Florida Sea Island) the
other The European countries were in the mar
ket for the small supply of middling and the
SPECTATORS contracting for it, while the
producers Of low-grade and extra-staple cOttOns
found few buyers. Tn cotton market was out Of
Joint Several mantsn ago the department: Of ag-
ricuture fOresaw this precise situation and urged
the modification of war goods specifications in
order to increase consumption of l0wgrade cot
tons, but it takes long time to readjust COM
mercial and manufacturing customs, because all
men are prone to maintain habits and spinners
are averse to mourning trouble 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
plan he had decided to adopt by constituting a
committee of inquiry and committee Of distribu-
tion For a quarter of a 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. He