Evening star., 1920-03-14
1914.
Big Jump In Six Months,

crease in price of these yarns from
June, 1914. to June. 1919, is some
what gradual" he says, but that
from from June. 1918. to December. 1919.
there is in every case a violent jump
OF more than 100 per cent in the short
space of six months. In the same six
months raw cotton advanced only
about Is per cent and wages, the prin-
cipal other item in the cost of produc-
ing cotton yarns. not. more than Is
per cent.
"A hosiery manufacturer showed q
few days ago bill for No. 70, one
lily. combed yarns at 81 per pound
The profiteering in cotton yarns is
country. 1t is being practiced by all
the textile mills and fostered by the
American Spinning Association.
"A president of a bank made this
statement the other day: -
"A client Of our bank. owner Of a
spinning mill. showed me a statement
for the month cf January. 1920, that
W made $50 ,000ahat month on a capt.
talization of $2se, e,000.' The same bank.
q reported a statement by q manu-
ncturer made q week or % ago to
the effect that q cotton mill that does
not make b6ck Its Investment in six
months Is poorly managed. He also
sid that prices Of raw cotton are not
e factor or even consideration be-
c$use the margin OF profit IL DO great
- IL uOI uculSu tn8I IhS BOluu9I8
profiteered and made big money dur
ing the war. but these profits within
tho last six months are simply enor-
NOUS"
End Not Yet Reached.
Representative Tilson gives another
example for the purpose of showing
that 1.-The end Is not yet"
The Old Dominion Trust Company
OF Richmond. va-." he says, sent out
. circular few days ago Offering a
new issue Of tx per cent cumulative
sinking fund preferred stock in a Ger
tain North Carolina cotton mill hav-
ing nearly $4,000 spindles. It is stated
ceding years the average net earnings
Of the mill had been q little more than
$450,000 per annum, this sum being
two and one-hAlf times the dividend
feQuirementA The most interesting
part Of the circular II the following
statement:
{" Net earnings for the year 1890. based
On the present cost Of cotton and manu-
featuring. are conservat1vely estimated
- be over 81 ,000. 900 per annum, or over
saght times the dividend requirements.
Had the company had the benefit Of
tho new capital now going into the
treasury (S1, ,50OO00) the earnings would
hsys averaged $375.000 for the past four
years, or three times the dividend re-
Qufrements'
"Pronteering is not An accident:
1sather Is 1t simply = malevolent mani
1A0tation Of sirdid human nature. 1t
cannot be said to be the cause Of the ab-
A1Emally high cost Of living. though the
Ause Of the one furnishes opportunity
for the other.
The basic cause Of the high cost of
living q that production failed for sew
efAl reasons to keep pace with consump-
ton during the war period, while at the
same time great monetary imitation took
p1Ace BY reason Of the enormous expend-
ft1mes incident to the war. The former
RUafly contracted the supply Of neces-
6aSy commodities, while the latter inor-
dtnately increased the demand.
Diseases Remedy.
The Inevitable consequence 10 just
yAat - zee going on all around US. No
INV or regulation can control It No
governmental action can prevent 1t.
1lAgrant instances OF prohteering may
be dealt with and punished. but no ap-
prociable effect upon the cost Of living
= can be produced BY such means.
Tho only real remedy is to remove
tho cause. This can be done only by in
creasing the supply or by lessening the
demand, or by both, which, reduced to
the lowest terms, means produce more
and spend less. II this principle were
adopted at once and followed out indi-
vidually. industrially and in the carrying
on Of the government itself. We should
soon be on the high road toward grad
ual recovery from the awful financial
and economic debauch through which
We have been passing"