The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-09-02
EXPLORATION DISCOURAGED
To BREAK DOWN PRICES
Official Statements that Expectation
sf'Fsrm Products Was Discouraged
in Order to- Deflate Prices

I
Manufacturers Record. =
"Ws. wrote President Wilson in the
early fall, of 1919 and forwarded to
hiinsa resolution passed by a conven-
ton of aronnd three thousand people
held; at New Orleans, composed of
leadisg farmers, merchants, bankers
and business men throughout the en-
t;rs,cotten belt; and asked him if there
was any pessibility-of a deAation pol
icy being PVT into effect, urging that
definite Information be given con-
cerning exports. An examination of
history brought to light the fact that
there was always imitation during
wars, due, to nder-production, to de-
structioR Of commodities, and due to
the fact that the governments, them
selves, took steps to initiate during
wars for the purpose of carrying on
said wars. It, was our understanding
that the economists and fnanciers
who were responsible for the adoption
Of. the plans for the raising of finan-
ees through the sales of bonds were
unanimously agreed that following
the world war it would be absolutely
necessary to pass through long Pc
Rod of imitation as result ofsthe world
war and the vast ;amounE Of bonds
hoated for financing same.
1--WE requested this information as
we fully realized the disastrous effect
artificial defation would have upon
agriculture and commerce; that, as it
was necessary for us to incur all Of
the expenses for the production Of
coIton before; it could be marketed,
q defatien. policy or the closing Of
exports would spell the absolute cer-
tainty Of imposing heavy. losses upon
the producers; and we had positively
determined, regardless of the fact
that we had; been urged: to produce
fifteen million bales Of American cot
ton, as there would be pressing de-
nand for this cotton, to drasticly re-
duce, cotton production, unless we
could be positively assured that there
would be no defation policy and that
the means for expectation of our cot
ton to Europe would be furnished.
.@:"A reply to his request convinced
as that there was no danger Of a de-
2ation policy; thai the War Finance
corporation had created fors the
Mrpese Of furnishing the means of
exporting products to Europe and
sEst same would function for one
year after the ratification of peace.
HpMsyef, please keep this in mind.
IEthe; latter port Of March,, 1929, the
following spring, Secretary Treasurer;
Houston wrote me in answer to the
former letter I had sent to the presi-
dent months before, stating that they
We're opposed to the expectation Of
American products as it would result
III maintaining present high prices
and such prices were subsidizing the
American farmer. Immediately upon
receipt Of this letter, we made every
possible effort to make direct sale
pf cotton, ,reahzinz that as sixty-foar
per cent Of the American cotton crop
iN exported, it was absolutely neces-
ssry To- continue the active exporta-
tien of same for the protection of the
agricultural producer and the various
allied friendly interests. As result
of concentrated efforts and a large
sxpenditure Of funds we had prac-
tisally completed all details for the
sale Of three hundred thousand bales
OF cotton at a basis of forty cents +.
Ss b.; american ports for strict low
ufddaing.; The matter Of Hsposing
Of low grade cotton was Of especial
aaysntage to the American producer,
as. only the cream Of the cotton crop
had been purchased since 1914, Ger
many and Central Europe, the main
epuntries consuming low grades, hay
ing been shut entirely out of the mar
ksts.
The sale of this cotton was condi-
tionsd upon the financing of same
Though the War Finance corpora
ton. At the last minute Secretary
Houston, over our protest, removed
tie War Finance corporation. Real
ling the fearful losses that this would
bring to agriculture and commerce
nationwide, we solicited the coopera-
tion of representatives from agricul--
tural states. With. the assistance and
cooperation of leading senators and
congressman, ve appeared before
Secretary Houston, and representa-
tiyes of agriculture from practically