Arizona republican., 1920-10-15

Cotton growers throughout the en- tire cotton belt not only in the south' but the southwest as well. have been asking their association and every one else. What is the matter with the cot ton market2" and What is the cause of the present situation?" and When win we get a fair price for cottonf
 Tho Arizoha American- Egyptian Cotton Growers association CArlzona- California division of the American Cotton Associationl takes great pleas urc in submitting for publication thru out the southwest the following state ment Issued under date of Oct. ( by Col W. R. Thompson of New Orleans. Colonel Thompson is the head Of the firm of cotton factors Of ". B. Thomp- son & CO. in whose care the associa- ton is shipping large amounts or cot- ton anu securing adequate loans TOT the members. a proven friend or the cotton growers.
 Speaking of present prices offered for cotton. Colonel Thompson says: "Of course these figures arc absurd Although lt is true that certain fear crazed producers in some section have been stampcded into selling some good grade cotton on the present ruinous basis, still there have been no sales Of the lower grades upon which bona fide market quotations could be based These alleged quotations do not re- fleet the real value of cotton. but they do illustrate the extent Co which sin. ister forces have hammered down th' price. and are indicative of the com. picte ruin which win engulf the cot ton producers and tho cotton soutl unless tho slaughter is arrested. It Il high time that we should recover ou . wits and marshall our forces into mil itant activity.
 "The cotton situation ia serious. is very serious The forces arraye' arainst the cotton producing industr and other agricultural interests of th south. are powerful and seem to be de tcrmined Co prcstrate this loyal an hitherto prosperous section.
 "Dut wo must not be dismayed D the strength of our adversaries noi over awcd by tho fact that federal an thority has facilitated the success c their assaults.
 with duo respect for authority. bu in obedience to what I believe to b tho demands of duty and truth. nalS the statement that tho predominant factor in the vast misfortune that ha befallcn the cotton producers and tn \. cotton producing interests is the finan #clal policy of the United states gov #Enment as the same has been form /|nd and administered by the fed #N 1nseve board and by the preser A sfr Of the treasury. who is als ~ HM|&f Of said board.
 #&sarve System Fine
 I#| /&/ reserve system is one ( thA#. #||#flcient. fl not the mos benef|&|2 &shcy ever created by cor gress
 'Tt hn4 Been the financial life save Of the country. But this estimate doe not preclude us from crlticizing the ad ministration of the system by any pal tlcular board.
 "Furthermore. the federal reser' board, in one of its recent monthly r' ports. nas stated that the downwai tendency Of prices is not to be ox plained by reference to any one eau or set of cau-es. but Co a complex factors This is quite true. We by ! means blame the federal reserve boa solely Tor the present situation. b we do contend that the dominant fa tor in tho devastating so-called con plcx of factors is this same board.
 Mistaken and Unjust
 "We contend. first, that the belat and almost frantic effort of the fe eral reserve board 70 reduce the hl cost of living by n summary assal on the prices of all commodities VI a tragic mistake. and secondly. ' contend that tho persistent attac made by the reserve board and fhc SC retary of the treasury upon he pric of tho necessary products of agrict ture and their repeated predictions th tho prices of these products would lower and still lower. was ln unm igated wrong.
 "Thc rates were elevated for purpose of curtailing speculation a curbing cxtravagance. Speculation tho constructive side of the mari has been killed, and buyers frighten into frightenedeinactivity. speculati on the destructive side. on the sh' selling side. encouraged by the tre of events and cmboldened by the at tude ard the prognostications of ' reserve board. has run rampant a unafraid.
 Pirates Enriched
 "As the result the pirates of SD, ulation have been enriched by | earned profits while the legitimate T. ducer and owner of commodities stood helpless while his property shr cled in his hand. Extravagance may may not have been curbed. but the bi den of the interest rate has fallen.