The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-04-23
Facts About the Reported Effort to Fix Cotton Prices
by CLARENCE OUSIIEY.

: Der 1e.
The work of the committee on cot
ton distribution fell broadly into four
classes which may be briefly charac-
terized as follows
First: Corporation with the cotton
committee in it's investigation and con-
sideration OF the question of price-fix-
ing.
Second Broadening the channels OF
distribution and use of the grades OF
! cotton below middling.
Immediately after it's appointment
tire committee commenced negotiations
with representatives. OF foreign gov
ernments for the purpose of concluding
agreements respecting the distribution
of grades of cotton below middling. At
the signing of the armistice satisfac-
tory arrangements had been made with
all interested countries, and In most
cases they had actually begun to pur-
chase agreed proportions of the lower
grades which have hung so heavily on
tho market during the past year.
The purchasing departments OF our
/ own government had both by contract
and through a rigid system OF inspec-
ton unwittingly enforced tho use of
much higher grades and qualities in
the production of goods for govern
ment requirements than was necessary
: from the standpoint of strength. SER
viceability and suitability for tho pur-
poses intended. On October rs the dis
| tribution committee secured an agree
ment with all of the purchasing agen-
| cies of the government which vas an
| nounced on November to correct this
| condition. and TO bring about more
normal request for the producers low
grades.
Third; On November fs Mr.. Brand. as
chairman of the committee on cotton
distribution, prohibited short selling of
contracts for both foreign and specu
| lative account on the New Orleans and
/ tho New York Cotton exchanges dur
! ing the period of transition from war
! to peace conditions
/ Armistice day. November II, was de-
! clared "a holiday on both exchanges. On
! Novem Der Il the market opened high
| err, advancing to S2a.29 for Decem Der.
| Immediately there set in wave OF sell
| ing which produced a decline OF two
cents a pound A greater decline would
! have occurred. but upon the recom-
mendation OF the two committees both
/ exchanges had instituted rules limit
| ing the daily fluctuations to that
| amount The market would have gone
/ lower beyond a doubt. In view OF all
| of the facts the prohibition of short
1 selling was made. and II Is generally
| believed by those who are best in
! formed that this action OF the commit
| tee saved cotton from "A disaster
| Fourth: After the signing of the
| armistice the committee worked for
| the removal. as far as practicable. Of
! all restrictions on exportatiou Of cot
| ton TO all but enemy countries. for an
| increase Of tonnage. for the transport
| tation OF cotton, for the re-establish-
! ment OF the issuance of through export
| bills of iading. and for the restoration
| OF normal conditions in the market for
/ extra staple Gotten.
1
| tivities were in the distinct interest OF
! the producer. nor have they ceased
| wholly tosthe present day.
! | do not believe that any depart
! ment OF government has sought ito
| force down the price of cotton to
! twenty-five cents" / know the de-
partment of agriculture has not On
the contrary the department of agri-
! culture, through the office OF the chief
or extension for the South and through
other field agencies in the South, has
consistently warned farmers against
an increased production OF cotton. has
called their attention to the fact that
the acreage of 1913. under normal con-
ditions. will probably produce two or
threG million bales more In 1919 than
Z in 1918. because of the 1918 drought in
Texas and Oklahoma, and has urged
them to increase their food and feed
supplies with the full knowledge that
4
plies would be at the expense OF cot
ton acreage. Bearing in mind the car
ry-over OF more than three million
bales in the last season, observing
throughout the winter and spring tho
poor prospect for pre-war consumption
OF cotton by Central Europe for some
time to come, the department has been
soiicitious lest normal acreage and
normal yield of cotton in 1919 in
crease the carry-over to tho point Of
constituting burdensome surplus
which might cause cotton to decline
below the cost OF production. These
facts have been repeatedly set forth
in bulletins, in newspaper articles, in
public addresses and by county agents
In nearly every agricultural county in
the South Therefore. 1t is grossly un-
fair, and to any wel1-informed man II
is ridiculous. to say that the secretary
OF agriculture or the department of
agriculture or any one connected with
the department has been party to
An effort ito force down the price Of
cotton to twenty-five cents.~
] was among those most positive
late in the fall and throughout the
winter and early spring In calling at
tentions to the poor prospect for cot
ton consumption in Sentral Europe for
some time to come on account OF the
disorganized industrial conditions and
the demoralized political and social
conditions. For calling attention to
these facts. which some enthusiastic
cotton producers were slow to realize,
have been rebuked at times. but I
am now indicated in the sefious ef-
fort throughout the South upon the
part OF business men as we'll a. OF