Evening star., 1919-05-10
DEEMS SET COTTON
PRICE UNPOPULAR
David Lawrence Says
South Believes Theory
{. Unsound.
BIG LOSSES SUSTAINED
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
NEW ORLEANS. La. May 9.-Out
west they still harhor sort of feeling
that the south was better treated be
cause the price of cotton was not fixed.
as was the case with wheat What
does the south think about it. especially
since cotton has fluctuated recently be-
low the figure at which it might have
been definitely held by the government?
Even though hindsight is better than
foresight and the cotton producers here
might now be benefiting from fixed
price. the opinion of liberal-minded folk
in this section is that the same argu-
ment made againat price-hxing at the
time the controversy was at it's height
holds good now-economically unsound
them therefore economically unsound
now.
Task Too Great.
In the first place. having had little
experience with the government man
agement of such things as the war risk
bureau and allotments to soldiers. there
isn't much confidence here that Wash
ington could have handled so comph-
Gated a problem as compensation for
cotton. Every bale may have dtner-
ent weight and there are at least a hum
dred different grades of different values,
Probably the biggest department ever
created in the government would have
had to be set up to handle the clerical
TO telling when the cotton grower would
have got his money. Out west where
diversified farming has been developed
TO an intense degree, the dependence on
wheat Is relatively not Is great as the
dependence here on cotton.
The south has been living for years
now in a. sort of economic helpless
ness because money to pay for the
cotton crop has been needed so badly
each year that control of the market
has been largely a control of the
credits. and this has been accomplish
ed by other sections of this country
or European traders. Oniy when the
new banking system cane Into bsing
under the Wilson administration did
the south begin to see its emanci-
patton from the foreign yoke. but the
European war upset things great
deal and the people of the United
States generally have no idea of the
losses which were occasioned in the
first two years of the war when the
British EMBARGO and biocftade ineV.-
tably curtailed shipments and caused
cotton to drop below 10 cents. In
contrast to this situation 1t is pointed
out that the wheat growers have not
suffered such great Losses. Nata;.ii%.
when the market began to rise the
south saw its opportunity to recoup
losses and didn't want to see the price
fixed.
Price Fixing Sound If Crop Short.
On the other hand, the cotton men
here believe the price of wheat was
fixed for entirely different as reasons
here. Wheat was scarce. but cotton
was plentiful. X is still contended
that price fixing was economically
sound when applied TO commoclt!
in which there was shortage. but
unsound with reference to articles OK
which a plethora existed. but ship
ping was scarce.
Again, naen who are not themselves
interested in cotton assure me that
the amount per acre which the cotton
grower has been able to get Is much
less considering his toll and labor
than that which the wheat producer
gets even at $2.20 wheat. For ex-
ample, the south in response to the
government appeal planted the sec.
ond largest acreage in the-history of
this country. Weather conditions
caused much. loss. And; tf cost the
south Just as much to raise its small
crop as IL did to plant the big crop.
To some extent this wae relieved by
the higher prices. but the south does
not feel that it got anything extra.
ordinary in the way of money out OF
the war. In fact, just now. it thinks
the west got much the better of it.
with a price of $3.50 for wheat. when
the figures might have been much be-
10" tnat II IQo government h6o AloS
forestalled such a possibility by
guaranteeing the crop for two years.
South Has Learned.
No. the south far from feeling that
Il got better treatment than the west.
rather thinks the shoe is on the other
foot. But the south learned some
lessons during the war taken from
the brother wheat growers expert
ence; first, the farmer has seen the
Importance of using some of his acre
age to produce foodstufrs: second. in
stead of having the government or
any other intermediary agency fix
prices. the farmer himself will now
regulate the supply. thus he will reg
ulate the price. And the unused acre
age will be put to other uses for the
production Of necessities of life which
viii reduce the cost of living to him
and therefore the cost of growing the
cotton.
Would Have Treaty Ratified.
The south is very anxious to have
the treaty OF peace ratinen.
The cities which I have visited since
the official summaries were made
public seemed to think the document
a good compromise among the allies
and stern Judgment upon Germany,
but proclamation Of peace Is wanted
also because OF the hope that 1t will
epcSullS IclQEu pTc-"dG CoHultlOHS OIL
commerce. This region is anxious to
trade directly with Europe, first with
the neutral countries and later with
the central powers. During the war
buying commissions have represented
Italy. France and England. The
British through their control of i'm
port licenses and shipping have been
able TO control the amount of cotton
that could be sent abroad. A combi-
nation of these foreign commissions
has meant virtually a single buyer
Now the south wants to get into the
open market again and establish direct
contact with the purchasers. Peace
cannot come too soon to suit the
south. And as for discrimination in
favor of this section and against the
west. comparison of the farmers
books in the south and the earnings
of the producers of $2.20 wheat would
answer the question mathematically
copyright. 1918, by y. Y. Evening Post Inc
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