Arizona republican., 1920-03-05
W0RLD'S COTTON DEMAND GREATER
 THAN SUPPLY, IS OPINION
Prof. John A. Todd of Eng land, Reviews Situation There Will Be Scarcity When Consumption Be comes Normal

The world wants more cotton than is poduced today. This is the opinion of Professor John 4. Todd. the noted British cottnn expert. expressed in review of the worlds cotton market in a letter to J. Skottowe Wannamaker. president of the American Cotton Growers association.
 MT. Wannamaker, in turn. in a letter t ocotton producers. features Professor Todd's analysis of the cotton situation.
 We hear much on exchange says MT. Wannamaker in his letter. Tt is consistently played up in the press, used for the purpose of depressing the price of cotton, written about. talked about and exaggerated. The producer, under the organization of the American Cotton Association, has the situation in hand if he will realize the true con ditions
 "A letter from Professor John A Todd. the great English expert. re- ceived by me today, gives an insight into the true situation. It reads in part as follows:
 '"The difficulty of the rate Of ex- change is perhaps the most serious feature at present. That will also right itself, partially, at least, as soon as European production begins to recover. In the meantime, it must be remem- bered that the rate Of exchange cuts both ways. If, for example, the Ger man spinner loses heavily on his inn ports of cotton, he gains just as heav- fly on his exports of cotton goods. and on a much larger total sum. because the value of the imported material is only part of the value of the finished article when labor and other manufac- turing costs have been added to it.
 The German producer for some time to come will be in the paradoXical position of being able to sell his goods abroad al prices far below the cost of owing 10 the condition of the eN- change A similar illustration in an other section occurred in America last month when~ it was found that the American spinner could import Egyptian cotton at a price about ten cents lower per pound than he was paying for similar cotton grown in America owing to the rate of eX- change.
 Unlimited Demand.
 The quantity of cotton goods the world wants may be described as unlimited. Europe and Asia are bare of cotton goods of all kinds. High wages in all lines in industrial countries and high prices for raw ma terial in these countries which produce them. combined with the high price Of silver in the east, means an increased spending power on the part of these classes and those countries which have always been the larger users of cot ton goods.
 Tt must be remembered that cot ton is still the cheapest textile avail able, both for clothing and many other purposes. and the experience Of every salesman in the trade just now is that he could sell many times more goods than his mills could produce. Tn 1r ton for the next five or ten years is threatened Pre-war records for all the principal crops are hardly likely to be broken, if they are even cached.
 Tn the case of the American crop in .ome to look upon fifteen million bales as about the average, a figure which has twice been substantially exceeded In the future that figure must be taken as maximum and the average is more likely to be between welve and fourteen million bales Even before the war we had begun to ative increase of one mszlion bales per lnnum. So far from obtaining that. we are now going to have in all prob ability reduced crops
 The result will be a. scarcity which will become increasingly serious as he world s capacity to consume re turns to normal. To resume the pre- var rate of increase of consumption will be impossible because the cotton will not be there, and for this state of affairs there is no immediate remedy There is need now of a campaign for sreater economy in the consumption Of cotton. We have been so long accUs- omed to cheap cotton that we think nothing of throwing away an article hat is only half worn out or that night, with a little trouble, form the aw material of something else.
 Tn the same way, economy will be Q lecessary in the direction of making