Imperial Valley press., 1920-11-13
GOT TON
81 I UA I ION
BLAME TO
ENGLISH
Los Angeles Cotton Expert
Gives Four Fundamental
Reasons for Present Dis
location of the Gotten
Market.
Especial to The Press.)

NOpecldl 10 Inc freSS.)
DOUGLAS, Arizona, Nov. 13.-
J. Day, recognized as the lead
ing financial authority on cotton in
the Southwest and on the Pacific
Coast, and vice-president of the
First National Bank of Los Ange-
les, in an address before the Ari-
zOna Bankers convention today,
discussed the cotton situation as it
affects Arizona, New Mexico, Cal
ifOrnia and the Imperial Valley
south of the American line.
AS Mr.. Day is chairman of the
clearing house committee OF Los An
geles bankers which is financing the
present cotton crop, his discussion OF
the present situation in cotton is Of
particular interest. Mr.. Day said in
part:
"The fundamental causes for the
dislocation Of the cotton market are
(1) the readjustment problems with
in the United States; (2) Japan's
financial troubles; (3) the inability
of European countries to purchase
their usual amounts of raw cotton,
and (4) the failure of British buyers
who are able to purchase cotton to
place orders.
British traders are far-seeing in
dividuals, who have been educated
in the habit of working together.
am wondering if theFfailure of Great
Britain to come heavily into the
market at this time, Notwithstanding
her recent coal strike, is not a
clever move on her part? / am also
wondering why British controlled
Egyptian cotton should be shipped to
the United States this season? 1t
looks little too much like Garry
ing coal to New Castle" to be ac-
cepted strictly on it's face as legiti-
mate effort on the part of Egyptian
cotton grower to market his goods.
"In view of what we have recently
done in trying to cooperate with
England, it would seem only fair
that in her dealings with us, a
proper spirit of reciprocity should
prevail.
with the possible exception of
wool, the price of no commodity has
shown such rapid decline during
the present season, as has the price
of cotton; and from the South cornes
the claim that more than $500,000, 900
will be lost to the sc.,on growers,
under present market conditions.
Cotton, like Banquo's ghost, will
not down; and while we need not eX-
pect to receive war time prices for
the staple, we may expect an in
creased demand as conditions become
more nearly normal and the present
stocks of goods are reduced. The
world will need every bale of cotton
that has been grown and the future
demand will in all probability ex-
ceed the increase in production.
"The decline in prices is not sur
prising when considered in the light
of present conditions; and had the
market been governed -n;irely by
the law of supply and demand, the
situation would be much more
healthy and satisfactory one.
"There is remedy for the present
condition, and while we may not be
able to effect an Immediate cure
we can greatly anc permanently
strengthen the position of the cottor
industry by establishing in the near
future a system of bonded ware
houses as provided under the Federal
Warehouse act, and our present ware
houses, wharfing and shipping com.
panies should Immediately qualify Sc
that their receipts for cotton il
storage or in transit would meet the
requirements of the Federal Reserve
act and thereby form basis fol
credit extension.
'In addition to the building up O,
the cotton market here, there will b,
established throughout the district
cottonseed oil mills and other grea
industries handling the by-product
Hof cotton, with the result that ther
will develop in our own midst an in
: dustry that will prove to be one o
the greatest factors in the CONNER
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