Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-14
COTTON DECLINE
LAIDON FAILURE
I TOSIGN TREATY

The failure of the United States
senate to ratify the peace treaty. is
one of the main factors responsible
for the drop in the price of cotton,
according to William G. McAdoo,
formerly secretary of the treasury,
in letter written by him to j. S.
Wannamaker, president of the Amer
lean Cotton association, and given
out in Atlanta by HarVie Jordan, ma
tional secretary Of the association
Mr.. McAdoo's letter to Mr.. Wan
namaker is as follows:
October 5. 1920.
My Dear Mr.. Wannamaker:
l confirm the telegram / sent you yes
terday as follows:
ANSWER to your letters has been
delayed on account of absence and
pressure of many engagements. Nam
deeply concerned about the disquieting
conditions you describe and wish I had
power to intelligently assist in cor
resting them. I am under engagement
to leave on 18th or 18th inst, for an
extended speaking trip under auspices
of national committee, which will take
me to the Pacific coast and back.
These arrangements cannot now be
changed and force me to give up all
my own business and everything else
until November 2. 1 shall be glad to
do anything in my power but, having
no longer any authority, I do not see
what, as private citizen, 1 can ac-
complish."
feel deeply concerned about the pros
perity of the farmers and producers of
the south and l am greatly distressed to
learn that the cotton market is again in
such a demoralized condition, and that the
cotton producers are facing such serious
losses as those you indicate. While no
single cause is responsible for this con-
dition. nevertheless 1 do feel that the
failure of the senate to ratify the peace
treaty and to set in motion, far as this
country is concerned the provisions Of that
treaty and to make the United States an
active particjpa ting member of the League
Of Nations, has had a very serious effect
upon our export trade, especially on our
export trade in cotton and other products
of the soil.
Central European Situation y
Revival Of industry in Europe, especially
in the central powers, which would have
opened up large markets for our cotton
and other supplies, was dependent upon
the prompt ratification Of the treaty, and
tion in the exchange situation would have
been greatly relieved also by the prompt
ratification of the treaty, with a resulting
advantage to American commerce.
The deplorable situation has resulted
from the partisan attitude of the Republi-
can majority in the senate, and is n very
large contributing factor in producing a
cotton situation this year which is, in many
respects, analogous to that which faced
the country after the outbreak of the Euro
pean war in 1914.
The necessity Of extending foreign credits
50 as to enable these foreign countries to
buy our products has been imperative all
along, but no organized effort along that
line appears to have been made. The Edge
bill, passed by the last congress, was q
wholly unsatisfactory and ineffective rem.
edy. A very strong and powerful credit
organization should have been effected a
long time ago, and 1 am sorry that the
original plan for the creation of an export
cotton association with a capital Of $780,
DOC, 900 or more, which was under con
sideration in the south more, than a year
ago, was not perfected.
Declining Export Trade
Our declining export trade is not q sur
prise to anyone who has any sort
Of comprehensive view of our stua-
tion, and has looked even a short way into
The reaction of all these things upon
our domestic situation has been unfavor-
able, and 1 fear will be more unfavorable
as time goes on.
I have no doubt that the della ton policy
in the present distressing situation in the
south, but it would be mistake to assume
that it is the only one. 1 have been ont
If public office so long, and have been
confirming myself. as You know, to the
practice of my profession so exclusively,
that am not able to form a definite judg-
ment either as to all of the causes which
have led to the present condition of af-
fairs, or to be able to offer any satisfac-
tory judgment as to what the proper remedy
may be, but you know, of course, that
while I was in office 1 felt always that
every reasonable assistance in the way of
credit should be extended to the farmers
during the crop moving and crop marketing
season, to enable them to dispose of their
crops in an orderly manner, SO that they
could have the fullest opportunity to re,
ceire reasonable prices instead of being
forced to sell under pressure and at unnec-
essary sacrifices.
| note what you say about the proposed
organization of an export corporation
presume this is substantially the
same suggestion as that which was put
forward in the spring of 1919. l should
think that such an export corporation would
be of great value, if organized along
the right lines and sufficiently capitalized.
but your difficulty is to get it organized
in time to meet the emergency which is
now upon you. shall be very happy,
the way of advice, or counsel, which is
freely at your service and without charge.
AS l said in my telegram. / am obliged
to leave on the 18th and 18th inst. for a
speaking trip, which will take me to the
Pacific coast and back. 1 do not return
until November 2, but after that date I
shall be very glad to render any service in
my power.
With all good wishes, 1 am
Cordially yours.
(Signed) VIM. G.. McADOO.
j.. s. Wannamaker, Esq, President American
Cotton Association, st. Matthews, S. c.