Imperial Valley press., 1920-05-12
COTTON COSTS Of
PRODUCTION RISE
TO 50 CTS. POUND
W. ". Morrison in Weekly
Letter GiUes Latest NeUs;
Declares Cost is N0lU Close to
5OCentS Pound.
Bx ". ". MORRISON

NEW ORLEANS, La, May 12.-
The financial independence of the
producer has, at length, placed his
mental attitude among the more i'm
portant factors that finally determine |
the price of cotton. Hence, it seems |
we'll to keep in touch with how he is
viewing current events and what
these views forecast as to the future.
What will it cost to grow the crop
of American cotton this year? This
question is now uppermost in the
minds Of the growers. There never
was time in the history of cotton
production when it so vitally con-
cerned civilization as it does today.
Obvious world conditions make it so.
1t costs now $45 per month to feed
one plow animal Labor costs some
thing more than s100 per month and
the supply is uncertain and inefficient
even at that. Planting seed costs from
$3.50 to $3.50 per ton and the quality
I is Indifferent. In fact, every item
that enters into the cost of production
/ is higher than was ever known before.
| Based on the average yield of the
last FIVE years, the price Of these
items indivate a cost Of something
| like so cents per pound. The reac-
tionary speculative element will hard
ly believe this, nor is it likely to. be
believed by. large section of the
spinning industry in this country
and in England. especially those OF
the industry who follow the lead of
such economists as Prof. J. A. Todd,
who recently stated that it cost %
cents per pound to grow the crop OF
1919, and, incidentally, embarrassed
US by not offering a single. vestige OF
evidence to support his statement. al
though it involved matter OF the
most serious Importance.
However, what these reactionaries
and these alien economists, and their
followers, thing as to the cost of
growing the crop is wholly unimpor-
tant, and it has been so for quite a
long time. Thousands of farmers.
merchants and bankers-the real
builders of the South--believe that
the cost of production this year will
be so cents per pound and more. Their
view, and their view alone, is impor-
tant. For the history of recent years
makes it evident that whatever they
conclude as to the cost will definitely
determine the course of prices, and
not the conclusion Of reactionaries
either at home or abroad.
The producers know all about the
big profits made by the mills in this
country and in England. While they
are more acutely alive to what this
crop is going to cost than ever before
they are just as much alive to the diff
ference between what they are re-
ceiving for their cotton and what they
are paying for it when they buy it
back in the shape of the manufactured
product 1t is quite the practice now
for the farmer who buys piece OF
cotton goods to weigh it and figure
out just what percentage this differ
ence emounts to. The result is often
electrifying and is frequently the sub
iect of the widest comment.
Whenever money gets tight among
the speculative interests in the largo
centers and rates go up. the South is
now participating very largely in the
loans extended to relieve such sltua
tions. In view of the fact that these
lloans are made from surplus above