Arizona republican., 1919-12-14
SURPLUS IF T|NO MILLION BALES
 TOBE STORED FUR HIGHER PRICES

worthless as they are already rotting in the bolls.
 Cotton in Oklahoma and Arkansas is extremely late and the bolls were just cracking. Crops in these two states will be enormously reduced as a great deal of the cotton will never open on account of weather conditions.
 We canvassed the situation with ex- pert oil mill people. producers, busi- ness men, including bankers, farmers, merchants, and they confirm the above statements. There is not a possibility of the present crop yielding over 9,437,- 900 bales of cotton. Of this amount, even should the rains at once cease, in the west, there will not be in excess of 6,O0O,00O bales of tenderable cotton on New York contracts. Cotton buyers are pulling the staple of cotton throughout the length and breadth of the belt paying premium for all cotton that pulls one inch staple or more, it being absolutely necessary to substitute short staple cotton for long staple, the sup ply of which has been exhausted.
 History repeats itself, and commer cial history is no exception to this Cotton sold after war between the states for s1.50 and S2 per pound. TO what extent will history repeat it. self before the 1920 crop goes on the market? The price will be far above any price that cotton has brought since the commencement of the world war. Cotton sold at present prices IS being sacrificed for a mess of pottage. The experts of the American Cotton association. after a careful investiga- ton of supply and demand, the price | nf tha rn1 Inf TrnHr1nt nriRa of other commodities, have unani- mously recommended that the asso- l citation retire two million bales of ! good grade cotton from the present | crop. The plans which were recom- | mended and which have been adopted | call on the membership of each state | to voluntarily transfer to designated banks warehouse receipts for speci- | fled amounts of good grade cotton. This cotton is to be held in trust until such time as the association decides that prices justify the cotton being placed upon the market It is the unanimous decision of these experts that based upon supply and demand and the price of the manufactured product that the price for cotton should be far above present prices and that by adopting this method the price of cotton will be stabilized at a price Something like the intrinsic value based upon supply and demand and the cost of production. It is also the unanimous decision of these experts that on account of the enormous de- mand for raw cotton and the great shortage of same that it will not neces. sary to carry this cotton longer thar the summer of 1920.
 RaCDnnua- ous sections of the belt show a ready compliance on the part of the mem bership of the association. Each statt is urged to report the amount of cot ton set aside under this arrangement to the president of the American Cot ton association. The amount of cot ton already pledged indicates that this plan will not only be fully approved but that an amount far in excess 0 the amount requested will be takeI entirely off of the market.
 For the first time in 100 years tn, cotton producers have evolved plan and made the necessary arrangement for handling their product, carryini their surplus in such a manner tha cotton will sell for it's intrinsic value that the cotton producer will be place, in a position to name the price for hi
 product. Under this plan there is n
 possibility of the cotton being removes
 from the market being placed bacl on the market unti lthe time agree upon by the association. The variou
 states show considerable rivalry i
 their efforts to be the first to go owe
 the top in the amount of cotton [
 be set aside. It is the intention c the association in full years to carr
 surplus cotton into lean years. How
 ever, an exception will be made thi
 wear on account of the great shortags