New-York tribune., 1918-06-02

III was equally large in the 1914'15
season. But under present conditions
this great surplus might weigh so
heavily upon the market as to carry
prices down to g point dangerously
close to the cost of production, and
this would be unfortunate.
But what is the cost Of production? i?
The average cost of producing a pound
of cotton in 1918 was 1928 cents,
as ascertained by the Watkins Cotton
Statistical Bureau, which made an ex-
haustive investigation of the subject.
Since that crop was harvested the
value of nearly everything that enters
into the cost of making cotton has ad-
vanced-labor, for instance, is fully
twice as Highland, if it cost 1923
cents pound last year, the cost of
production this year will no doubt be
at least Is per cent higher, or from ID
TO l5 cents per pound. The average
price paid to the planter for the crop
of 1917-18 was 27h cents. or 1922
cents more than cost Of production
II 271s cents is realized for the COM
Ing crop, with the cost of production
at 14h cents, the difference would be
13 cents; if the crop sold for 25 cents
1t would be 1880 cents, or about 70
per cent above the cosxof production.
1t would, therefore, appear that not
less than rs cents a pound for the
191S-19 crop would be no more than
reasonable. And why not, if the man
ufacturer may realize such enormous
profits, often much higher than 100
per cent? Here are some illustrations
OF prohts mentioned in recent issue
OF "The Textile World Journal:
Print cloths, TX to 7% yards to the
pound, 1871 cents per yard, s1.o1 per
pound.
Colored goods, yards to the pound,
21h cents per yard, $1o71 per
pound.
Sheeting, a yards to the pound, 21
cents per yard, "a cents per pound.
When cotton was selling at Is cents
a pound sheeting of the above descrip-
tlon was selling at from 6 to z cents
per yard.
And more than this, the prices of
cotton goods, at least civilian goods
are continually advancing, whereas the
price of cotton on the New York Ex-
change JAS been gradually declining;
Tor instance, last week bleached mus
Inns advanced 2 cents yard and
brown sheetings and print cloths to
the high prices for the year On the
New York Cotton Exchange there was
decline last week of $40 a bale or
old crop months, and of S7.55 to SS
on new crop deliveries. Thus the re-
latlon between the price of the manu-
factured product and the raw materia
is continually widening The truth Is
there is no relation between the two
The Prospects
Of Fixed Prices
1t is this very condition that ha:
caused the government to intervene
to prevent profiteering" and t.
stabilize the prices of goods that ar.
being manufactured for the use O.
the army. The price fixing of wal
goods is now under consideration b,
the War Industries Board, and, if i
is extended to civilian goods, such
action would no doubt be welcomed
by the people, particularly the work
ing classes. In this connection the
action of the convention of the Ma
tional Association of Cotton Manufac
turers, recently held in New York City
is highly commendable. Resolution:
were passed pledging all of the as
sociation's resources to the mobiliza
ton and organization necessary fol
the successful prosecution of the war
and cheerfully accepting control ane
price-tixing of their products ii tn,