New-York tribune., 1918-11-17
Tonnage Scarcity Only OBJ
stacle to Tremendous
Foreign Buying
Aim to Clothe Europe
Charles J. Brand Defends
Stopping Speculative
Short Sales
(SpeciM Dispatch to The Tribune


WASHINGTON, Nov. 16.--After two
weeks of chaos in the cotton situation
the outlook begins to be encouraging
from the Washington point of view,
whether the observer be a government
official involved in the solution OF the
problem or whether he be a represen-
tative of the producers. The War In
dustries Board, the Shipping Board and
the War Trade Board are observers OF
the former class, and members of Con-
gress from the cotton states are of the
! latter class.
Following the prohibition of specu-
lative short selling orders by the cot
ton distribution committee of the War
Industries Board on Wednesday, the
unofficial Congressional cotton commit
tee met on Thursday to canvass the
situation. The committee found itself
in agreement with the position OF the
War Industries Board that barring the
element of transportation the economic
situation is most auspicious for cotton.
The Southern view is that if free play
of demand can be brought about, cot
ton will naturally rise to 35 to 4o
, cents to the producer, which 1t is MAIN
| tanned will only be fair price for this
crop. estimated at II 100000 bales with
a potential demand of about 14,OoO,000
bales. For the purpose of removing
the artificial restrictions that now
/ stand between demand and supply, sub
committees we're appointed to take up
/ the matters of shipping and of export
licenses from the War Trade Board.
These committees have already met
with much encouragement. The war
Trade Board is disposed to consider
that in the handling Of the new trade
problems, the facilitation of cotton ex-
ports is of the greatest possible I'M
portance to America as we'll as to Eu-
rope.
More Cotton for Neutrals
1t is of the utmost Importance to the
! United States to have the normal in
dustrial life resumed in Europe at the
earliest possible moment, and ample
supplies of raw cotton for the spindles
of Europe will contribute to that end
more rapidly, perhaps, than ample sup
plies of any other raw material Of
manufacture. 1t is possible now to
| allow the neutrals more cotton than
was allocated to them during the war.
| wb inc wanted
100000 bales, received export licenses
/ for $1,000 only, for fear the Germans
would surreptitiously benefit from
larger shipments. AS a matter of fact
Sweden got none, but now she can be
permitted to try to get 100000 bales
if the shipping can be found. Eng
lands returning soldiers will soon
make Manchester's cotton mills hum.
AS soon as the peace treaty is signed,
which the cotton Congressman maintain
will be within ninety days, the Central
! Empires will rush to get cotton.
The committee chat is dealing with
the shipping question is trying to get
the restrictions on shipping removed
in such a way that the owners of tramp
steamers will be permitted to take
cargoes wherever they can get them
to pay. The Shipping Control Com
mittee is inclined to give much weight
to the argument that Europe needs to
be clothed as we'll as fed and that the
l., Ia%t,
! ing will tend to put it in position to
pay for its food. Therefore a large
percentage of the transports will carry
cotton ont heir voyages to Europe, and
liberal part of the vessels that are
to be released from war uses, such as
the nitrate carriers and the cargo yes
sells that have been carrying munitions
to Europe, will be assigned to cotton.
When peace is formally declared con-
siderable Austrian and German tonnage
will be available, and then there is the
fact that American shipyards are now
turning out ships at the rate of 4OO,-
600 tons a month
Reviewing the foregoing facts this
afternoon, Senator Hoke Smith, of
Georgia, told The Tribune that. re-
mem bering that the major part of the
cotton year will remain after the peace
| treaty is signed, he was convinced
that, if the crop is not rushed to mar
ket, the farmers will get close to
forty cents. incidentally, Senator
Smith insisted that the cotton men had
been consistent throughout the war,
that neither in 1914 nor in 1917 did
they want guaranteed price for cot
ton, and that they did not want gov
ernment price assistance now All
they want, he said, is free play of
natural economic forces.
Why Short Selling Was Stopped
Charles j. Brand, chief of the Bureau
of Markets Of the Department of Ae-
riculture, who is chairman of the cot
ton distribution committee, took prac-
tlcally the same view of the cotton
situation as Senator Smith, and agreed
with the Senator that with untram-
melled trade and shipping facilities
the economic situation pointed TO
higher prices for cotton and he is
confident that there will be soon
| tremendous outlet for Americas short
crop.
Mr.. Brand stands pat on his com.
mittee's action in cutting off short
selling, saying that whatever may be
the facts nS tr tho "a: ~, tl.,4