Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-07-18

being cheaper and quite SatlSfact-
Dry. In fact. he showed also that
cotton was not used extensively any
where for powder manufacturing
but that cotton linters were in more
general use.
AS soon as the cotton embargo
was ordered the same men who al:
vocated an embargo on the ground
of patriotism began the circulation
Of false claims that the embargo
cut off a market for four million
bales and these claims naturally
hammered down the price of cotton.
The fact was. that after the Brit
ish order of March 1. 1915, Great
Britain virtually blockaded all neu-
trail ports and strictly limited the
quantity of cotton to be shipped.
Great Britain permitted only 100000
bales annually to go to Switzerland,
Holland, Denmark. Norway and SWe-
den and required this cotton to be
shipped to a local company. partly
Differed by Englishmen. who saw
to it that none of the cotton left
the country to which it was shipped.
Regardless of these facts, how
ever. selfish interests in September
1917, were using the claim that
market for four million bales had
been cut off by the embargo and
were beating down the price here.
On September 13. 1917. Senator
Hoke Smith reviewed the entire sit
uation in a speech in the senate,
tracing developments from the out
break of the world war and snow
ing the ,fallacy of the claim rela-
tive to the embargo'S effect. He
also reviewed the situation as af-
fecting supply and demand and deg
clared the supply would be 7O0.OOO
bales less than the consumption the
year previous. 1916.
Government Threatens Price Fixing
The cotton controversy was taken
up by other senators and was dis
cussed by the Georgia senator in
northern newspapers. The scheme
to depress the price of the staple
was so vigorously attacked that
it was broken down and cotton ad-
vanced in the fall of 1917.
The situation remained fairly sat
isfactory to the cotton producers un-
til the fall of 1918. The price had
reached between 35 and 40 cents
per pound. About this time the
War Industries board. with the ap-
prevail of the administration. ap-
pointed a special committee TO
desirability and the Feasibility OF
a sterilization of the prices OF cot
ton"
The War Industries board that
sit may be a part of this commit
tees duty to recommend baSlc
price OIL COIIOus H. dlICL 411NNhGAsoSA
ton it is found necessary. fair
price will be fixed" The board also
declared that 1.-The demand for high
grade cotton is out of proport1on
to the available supply. ana the
fact that the government, through
early agreements with ITS az a1lles'
must act as a general buyer Tor al
lied purchases, makes it necessary
to secure some basis Of distribution
of all grades Of cotton.
This threat to create a single
purchasing agency and to NIX or
stabilize" the price Of the product
inevitably had the effect of bear
ing down the price of cotton. Ru-.
mors and expectation in some quar-.
tiers were that basic price Of
twenty to twenty-five cents would
be fixed by announcement OF the
creation of a common purchasing
agency to handle all exports OF cot
ton. 1t was realized that although
no government board or committee
had authority in law actually to
fix prices and compel sales there
at. creation of a common purchasing
agency for allied purchases new
ertheless would shape the cotton
market and control the price.
Senator Smith and a committee OF
southern senators called upon the
presider. to protest the stabilize;
ton" program and interference With
the. law Of supply and demand: ne
Georgia senator accumulated hSureS
from various sections OF the s1lth
showing that in some instances be-
cause Of high labor costs and other
expenses it had cost the farmer thir-
ty cents per pound to produce his
cotton and that no price below thlr-
ty-five cents could be justified. Mean
while cotton was steadily dropping
in price and there was widespread
announcement. The price broke 10
about % cents per pound, and the
stabilizating committee, of course,
could not have justified a price low
err than that to which the agitation
had forced down the market The
committee was subsequently as
banded without carrying through its
Next Fight on Embargo
About this time, the latter part or
November, 1918, Senator Smith re-
newed his labors with the war trade
board. He found such regulations
had been thrown about the eXporta-
ton of cotton that shipment was re-
stricted alomst everywhere except
to England and France, and France
had her own restrictions in addition.
On November 10, Senator Hoke
Smith offered a senate resolution
directing the war trade board to eX-
plain to the senate the restrlctlons
placed on cotton shipments. Inc
next day he appeared in person, be-
fore the board and discussed those
restrictions. AS a. result of the dis
cussion and before the resolution
came up in the senate, the war trade
board amended it's regulations ana
broadened the markets for cotton
abroad.
From that time forward Senator
Smith hammered at the war trade
board for additional notifications OF
embargo restrictions. Finally, dur
ing the latter part of May and early
June all the markets were opened up
except those of Germany proper,
Switzerland, Holland, Denmark, Nor
way and Sweden. With respect to
the five latter countries, the restric-
lions were liberalized to permit cot
ton in any quantity to be sent to
these markets, but it was required
that the cotton be not re-sh1pped
into Germany.
Last fall Senator Smith wrote and
Tn+oy;ov of tho r 3A's II