The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-09-14
COTTON OUTLOOK
PLEASES HARRIS
THINKS CROP WILL BE BELOW
ELEVEN MILLIONS.
Says Federal Reserve Board Re-
sponsible for Slump in
Price.
The State, 10th.

encouraged over the outlook for the
sale of cotton. He attended the
Montgomery conference, and thinks
taat things were set in motion there
that will aelp the South. He ad-
vances several reasons therefor. The
crop has a beautiful appearance IN
some sections, he says, but it is oil
weed, and the insects seem more rav
enous than evcc. There IS no hope
for larger crop tha2 last years,
even with perfect weather conditions.
No matter how iaig.l cotton Will go,
there will be from 100000 to 1.0o0,-
600 bales left in the 1ields, FOR the
high price of ginning and the low
grades will make it improbable to
pick the humble bee and dogtail. In
statement Commissioner Harris
says:
"a little less than year ago DR..
John A. Todd and other English ez-
perts, attending the world's cotton
conference in New Orleans, insisted
that the world needed a 100000
bale American crop in 1920. That
statement was repeated over and
over again when they went back to
England. They said that there was a
world cotton famine already in sight
Fifteen Million Needed.
"They begged the South to raise
100000 bales this year. A few
weeks ago Dr.. Todd made the dolor-
Gus statsmentSi 20 Manchester paper
that the South had failed this year
and would not for many years raise
a crop of 15,oW,0oo
.sMy estiraate is that the crop this
year viii Be 4,250, 900 short Of the
15,ooo,ooo that would be needed.
..Just 80 days ago cotton sold for
AZ cents. Today the same cotton IS
quoted at around 29 cents. 1t is a
fact that the world realizes that we
have q famine in the raw material
and the world realizes that the con-
sumption of cotton will be greater
next year than this year. We know
that cotton goods have not decreased
in selling price. Cotton shirts that
once sold for s1.5o are now bringing
$3.50 to SIS each, and the amount OF
cotton in them by weight is worth
about 10 cents more than formerly
What is Wrong?
$50 there is something radically
wrong? What is it? There is no
cause for it in the world but the
drastic defation processes OF the fea-
eral reserve board. This has made it
possible for the cotton buyers in Eu-
rope and in this country. The bear
gamblers are using the opportunity
thus created and are driving cotton
nrices down below the cost of pro-
duction.
.lsThere is no doubt that the action
of the federal reserve board is re-
sponsible for the great slump in cot
ton. This has been pointed out very
clearly by the editor of The Manu-
facturers Record and by Senator
Owen of Oklahoma, who was one OF
the authors of the law creating the
board.
ssThe SPECTATORS have planned
we'll ahead and are expecting the
farmers to do the same thing they
have been doing for the last 4o years
to rush at least three-fourths OF
the cotton on the market in the hrs1
three or four months when prices
have been forced to low level by
the eagerness of the farmers to cash
in and get rid of their debts. Then,
after the farmers have liquidated at
prices below the cost of production,
the bear gamblers who then have the
cotton in their possession, advance
the prices and acquire a marvellous
profit at the expense of the man who
has worked several months in the
wear to make the raw product.
"Rut. with the intelligence and the
information that the farmers now
have, I do not believe they will fall
into the trap and do the same old
thing. For this is the most over esti-
mated crop that l have known In 40
years observation.
Condition of Present Crop.
''In my article on cotton last week
I stated that 65.5 would be nearer
(Hont;n,,a6 oo Popa \