The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-06-15
RIVERS DISCUSSES
COTTON SITUATION
WAREHOUSE COMMISSIONER
TALKS OF PLANS TO RAISE
PRICE OF STAPLE AND PROS.
PECTS IN FOREIGN TRADE
FRIENDLY RELATIONS WITH
EUROPE NECESSARY.


tions on the cotton situation and his
trip to New York several days ago:
~ have been asked several times
lately, since my trip to New York,
to give to the public the information
which was obtained at the cotton
consultation meeting at that time,
and also my personal impressions re-
garding the future prices of spot
cotton. 1t would certainly have ap-
peared to the casual observer at the
meeting that every interest concern
ed, growers, financiers, manufactur-
ers, spectators and exporters, all of
whom were represented, were anx-
ious, for the prices to be higher-even
going so far as to say that the higher
the price OF the raw product the
more profit they made in dealing
with the market, because Of the
greater volume of business that was
done on an easy market over the
kind which we have at present,
which is very much restricted.
'T was still further convinced that
my position concerning the market
for cotton, which I have so often
stated and which gave out and was
published in the early part of the
fall of 1920, is correct. That is, un-
til congress makes peace with the
countries which we are tentatively
at war with, and thereby establish
mutual trade relations between the
United States and the countries of
Middle Europe, which are the largest
export customers Of this country in
cotton; and until some basis is estab-
lished whereby the rates Of foreign
exchange in relation to values of
medium or currency are made near
er par than now, or at least nearer
some equitable basis than at present
we need not expect the volume of
cotton exported to increase very per-
ceptibly.
$40 other words, cotton which is
bought from American dealers at a
low price in our money would cost
the foreign dealer entirely too much
in the medium or currency of the
country to which it would be ex-
ported. These people are expecting
the United States government to
make peace with their countries and
thereby increase the purchasing
power of their money. Consequently
they will not stock up on material
which, when such peace is made, and
mutual trade relations so establish
ed, would represent an inflated
value; but rather they would buy
from hand to mouth as their imme"
diate needs demand. This, Of course,
makes slow restricted export de-
mand. Our domestic trade is in very
much the same condition on account
of this foreign policy. Nobody knows
or can calculate with any amount Of
accuracy what the price Of cotton,
either in its raw state or manu-
factured will be, so the cotton manu-
facturer in this country only buys
raw cotton enough to keep his plant
going and for his near future needs.
This unsettled condition has kept
the bull speculator out of the mark
cts, or restricted him in his opera
tions. These things in my opinion,
are why the price Of cotton does not
advance, and why it has been impos-
sible to handle cotton in any great
amount since last September.
"The things that would boost the
price, in my opinion, are as I have
said before the establishment of
peaceful mutual trade relations, so
that our coutry can deal with the
countries, with which we are tenta-
lively at war, which hope to see
consummated before long and the as
surance to the cotton trade that a
large crop this year will not be
made; and to my opinion, the easier
financing, by reason of the change
of policy, of the federal reserve bank
concerning rediscount rates to q
standard, rather than progressive
rate, which has been the practice