The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-04-08
1~~
GOVERNOR ALLEN AND
THE COTTON GROWERS,
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To The News Scimitar:
GoN. Allen, of Kansas, has made the
charge that the movement to reduce the
acreage to be planted to cotton is an
effort TO- trade on the misery Of the
world, This Is Il very severe accuse
ton, and It Is obvious that 1t was made
without any serious Investigation. He
also states II to be his belief that the
movement Is not In the interest Of the
growers, but In the interest Of those who
nave been specializing in spot cotton. 1t
IL Just as obvious that this statement
also has been made without any serious
effort to find out the truth. This Is
really the most charitable Interpretation
that can be placed upon what he has
said.
The writer happens to have Just COM
pleted an extended investigation into
the financial position Of the unsold por-
ton of the crop and by whom It Ia
held. The opinion is practically unani-
nous throughout the cotton belt among
those Of the interior who nave the
most intimate knowledge of the matter,
that by far the larger part of the cot
ton is carried by the producers, This
was really forecast in many conversa-
lions the writer had with bankers
throughout the South in the early part
OF 1918.
1t was evident then that the produc-
ers would have to carry all the crop
not required for immediate use, the
bankers making it plain that while
there would be plenty of money to fl
nance all cotton moving into immediate
consumption, there would be none for
speculation, either in cotton or any
thing else, In view of the e%Xtraordi-
nary hazards surrounding the cotton
business, az well as all other kinds OF
business, 1t hardly looks reasonable, It
must be admitted, that extended spec
ulation In spot cotton Is probable,
The fact Is, what Gov. Allen has said
about speculation In cotton is an old.
old story. At some time almost every
year, during the last SIX years partio-
ularly, n report has gained currency
that the banks were loaded down with
loans OF cotton, whose liquidation was
about to be enforced, and that spot cot
ton was on the verge OF a drastic and
a possibly disastrous decline. For in
stance In the early months of the year
1915, when the South was carrying more
cotton, and very much more, than II is
carrying now, such n story was started,
but this prophecy was never fulfilled,
just as the prophecies In other
years were never fulfilled, The
records make 1t clear that this talk
about speculation IN spot cotton is
ganda put out to dislodge the spot
holders, There ia always some specula-
ton In spot cotton, 1t IL true, but 1t Ia
safe TO say It Ia now as 1t has always
been, incidental and u|nimportant,
Gov. Aliens initiative, either In eco
Monies or ethics, Is, after all, only a
matter OF passing Importance, even II
1t he important at all, He has, how
ever, incidentally raised questions re-
garding the economic life OF a very
large body Of people that are Of over
shadowing concern, not only TO the PEG
pie OF the South hut the people Of the
whole nation as well, So It seems an
opportune time 10 review the records,
especially those records whose high au-
thority promises 10 throw a light on the
current discussion that will be illumi-
mating and instructive,
What the governor Of Kansas has
said Is typical OF the criticisms to which
the W have been subjected evei
since the price passed - cents In the
upward trend. In every instance, &C
far as the writer has observed, II was
plain that the critics knew nothing OF
the conditions under which cotton haC
to he grown In the past nor Of tho
conditions under which It must be
grown now. They did not seem to real
ize that 1t was the miserable shack II
which the laborer lived, the coarse tooC
upon his table, and the coarse clothe;
upon his hack; in other words, that il
was the wretched ~privations OF his life
that made 10-cent cotton possible. Hat
the cotton lahorer got n living out o
cotton only one-half as good as prscti'
: Cally everybody else got out Of II, wit
!, did not do any Of the work to produce
It, the price would have been Is cents
to so cents per pound long. before IN
war. The records make Il perfect,
!, clear that II would have taken such
! price to pay for such q scale Of living
| A calculation conforming TO the sim
piest rules Of bookkeeping will demon
) strate that based upon the curren
, price OF the commodities consumed II
, the production Of cotton, and allowing
{ the lahorer no better living than $50 4
$7b per month will buy, the farmer
would lose, at the prevailing price o
{ October contracts, approximately on
! billion dollars on the crop TO be grow
this year should 1t be as much as ID,
00O,0 900 bales. Reputable records, bot
nublic and private, fully sustain Thu!