Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-09-10
BARUCH WILL EXPLAIN
COTTON PRICE ORDER
on Announcement OF War In
duStricS Board Chairman.
SOUTHERN SENATOR'S pANickr
Demand Explanation for Issuing OF
Statement That Led to Frcnzicd
Selling, Because II Was Misunder-
stood.

WASliINGTON. September 9.-Bcr-
nard NJ. Baruch. chairman OF the War
industries Board, w!ll appear before
the Committee on Agriculture of the
Senate tomorrow afternoon 10 explain
his announcement about stnbiliZing the
price OF cotton which caused the pre-
cipitate, slump in tho cotton market
last Thursday.
The authorized announcement by Mr..
i'aruch. as chairman OF the War In
dunuicS board. was made public late
a" me af,"rnoon. after the market had
nos q, ana was sencraiiy Interpreted
"a" '.'ctn-"S ,hat the price of cotton
Wou - .I%cd. The following morning
th' t.iiEc., wnich mad been exceptions
ANY Sr"nS ou snort crop report, was
Iio""cd a. the opening with selling or
ucrS. anu coi.un tooH almost "A record
drop OF s22.2' baic Tor October con-
tracts. II was reported In market cir
c!es that Il harvest had been r.aped
the opening OF ,he market, or at its
close The nigh, before.
Almost IA panic Mas created among
the cotton Growers OF the South 4
result OF the order. and the depression
WAS 50 great that President wilson
personally corrected the prevailing
impression that the price Of cotton was
TO be fixed in a telegram 10 an editor
Of southern newspaper
In the ncantIn. southern Senators
ana Congrcssincn, under pressure from
their constituents. had been making
diligent inquiry TO lind out the plans
OF the War Industries Board. and
mcnt issued explanatory OF the first,
in which he declared that the appoint
mcnt OF committee to investigate the
cotton situation and study the prob
lem OF its d!strtOutiOn did not by any
means Indicate It pr!cc-iiNinE program.
The statement came too late, how
ever to stem the ar-pailic ana TO
save the losses OF tile holders Of spot
cotton who had been caught in the
downward drive and had sold at the
declining prices.
Mr. Baruch could not appear before
the committee to-day, due TO other
engagements and Senator Ellison
smith OF South Carolina. called on
Mr. Baruch AT tn" War Industries
Board. Mr.. Baruch also gave Senator
present intention OF fixing the price
OF cotton ana that future action would
depend largely upon The report OF the
committee which he is TO name. The
chief study OF the committees. he said,
would De- the distribution of the cot
ton produced tn the United states and
upon which much war work at home
and abroad Is solely dependent
Senator Smith said to-day that Il
real price -!iNins program FOR cotton
cial disaster tor the South, and that
4 would have a serious effect upon
the finances Of The nation. Last year
two-tE!rdS OF the cotton crop Was eN
ported and brought into The United
States $1,000. 100000 in gold. This
serve law, stands for 81. 1000. 900 in
currency and a credit basis OF $4,000
100000, according To Senator Smith.
II the South Is facing pr!cc-nNing
program and low prices for cotton. IL
Viii cause panicky conditions and VIII
nave serious effect upon tho next
Liberty loan. for which the campaign
viii start in TWO weeks.