The Elk Mountain pilot., 1918-12-05


speak from accurate and frst-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, is there now. the
belief among those in responsibility that price
fixing will be necessary measure-cer-
tainly II never contemplated could II be
justified on any other basis. 1t has been
sidered only ns possible necessity. dependent
upon the information to be gathered.
"But there are several reasons for n cotton in
nuiry.
I'm the first place, there have bssa marked
fluctuations many times during ~ last few
months and more 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 vo-
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 puce 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 10 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 tse prices OF cotton. Contrary to
popular Impression outside OF the cotton belt. cot
ton prices not out of line with prices OF other
staple commodities For instance, on July j, 1914.
the average price Of wheat to the farmer was
7o.0 cents; September l. 1913 under govern
nsnt control, II was $2.O5-an increase Of 1877 per
cent. On the same dates the prices OF cotton were
12.4 and 32.2 cents-an Increase of 100 per cent
The average increase on farm products has not
been great. hut the average of manufactured
products Except those regulated under pow
erB) has been great greater. One Of the
most Interesting comparisons is found in the price
cf cotton goods. l quote from Bradstreets.
Wholesale Pr,ess Of Cotton Goods
..A .: Il Ss!, ! .ss III: l. - vi. :,
"a: ssa.as ss;sss .s.:.. sss.so. Sas iss s1s
sisssass. Anosie.s st.pl. ,Bo.,on,.. oe71 rs a2s
.Here are increases of from 2e1 to sss per cent.
sIn the fourth place. 1t developed few weeks
ago that there Is rather scant supply Of cot
ton Of the grade Of mlddling Of 1-inch to 1-16-
inch staple, and an abundance Of low-grade cotton
On the one hand and extra staple (such as Ari-
soma Georgia and Florida Sea Island) on the
other The European countries were in the mar
ket for the small supply of midding and the
SPECTATORS were contracting for 1t, while the
producers of lOw-grade and extra-stape cottOns
lound few buyers. The cotton market was out of
soint. Several months ago the department of ag-
-tculture foresaw this precise situation and urged
the modification of war goods specifications in
order to increase consumption of lOw-grade cot
toms but II takes long time to readjust COM
mercial and manufacturing customs, because all
men are prone to maintain habits, and spinners
are to incurring trouble or reducing profits.
sBut when the crop began to come to
Aprket the war Industries board deemed 1t neces-
1aty to take some action for adjustment.
"Chairmnn Baruch OF the war industries board
~ me the honor to consult me, in the absence
4pf Secretary Houston, about the details of the
r3asa, he had decided to adopt by constituting
suunmittce of inquiry and committee of distribu-
ys0m. For a qunrter OF century have given
6&ose less study to the economic aspects of cot
q n, md c. mot recall time when the cotton
:t.ss-,er was injured by the revelation Of the
8holc truth nbout cotton supply and demand He
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