Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1918-12-07

speak from accurate and irsthand 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 It never was contemplated. nor could 1t be
Justified, on any other basis. It has been con-
ssdersd only as a ppssiblei 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 justifyng economic
reasons Repeatedly the market has risen more
than hundred points and reacted much or
more within few hours There have been vio-
lent breaks reminding Of the slump at the
outbreak of the war, and In no single case has
movement been justified by any real fact Of
trade Importance. All such irrational fluctuations
are extremely hurtful to producers and legitimate
traders and manufacturers.
I'm the second place, often and almost con-
tnuously 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 l. 1914,
the average price of wheat to the farmer was
1853 cents; on September l. 1918, under govern
ment control, 1t was $2O5-an Increase OF 1877 per
cent. On the same dates the prices of cotton were
l2.4 and 1922 cents--an Increase Of 100 per cent.
The average increase on farm products has not
been great but the average Of 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.
w.. Avg 1s;a l. A SsI7 l. A ,s;sl J.
Print cloths e4s geston, soSszs soos s, soda ,s7,
esham asosssas Staple Sss B 3
Here are increases of from 2e1 to 1888 per cent.
I'm the fourth place, 1t developed few weeks
ago that there is rather scant supply of cot
ton of the grade Of middling of 1inch TO lie
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 We're in the mar
ket for the small supply of middling and the
spectators were contracting for 1t, 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-
rculture foresaw this precise situation and urged
the modification of war goods specifications in
order to increase consumption of low-grade cot
TONS but 1t 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 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 industries board
did the honor to consult me, In the absence
of Secretary Houston, about the details Of the
plan he had decided to adopt by constituting
committee of inquiry and committee OF distribu-
ton For quarter of century have given
or less study to the economic aspects of cot
ton and cannot recall time when the cotton
farmer injured by the revelation Of the
whole truth about cotton supply and demand He