The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1921-06-29
PLANS TO CARRY
SURPLUS COTTON

Secretary OF Commerce Gives Views to
Senate Committee Outlining Posi-.
tiOn Of Administration as to Eco.
nOmic Distress Being Felt by Farm
ers.
Washington, June 25.-Efrorts are
being made by the administration TO
mobilize banking credits for carrying
over surpluscs of the country's cotton
and sugar, Secretary Hoover disclosed
today before a senate committee. The
object is to prevent Il forced" iioui-
dation Of these commodities" he said
and the plan under consideration is
identical with that carried out in the
cattle industry.
The commerce secretary was called
to give his views on the Norris bill to
create a $l00,000,00O government farm
export corporation. He told the com
mittee he did not favor the measure.
II don't want to appear to deprecate
any proposal intended to assist the
"oi iS"iI"i oi iilouoIIS, MI. hoover
said, because the situation today
which has reduced the purchasing
power Of the American farmer 67 per
cent has put him to the most serious
durcss agriculture has ever had to
face. The situation is the most acute
and dangerous in the country at the
present moment. let l cannot feel
that the extension of further credit
facilities for the supply of food pro-
ducts to Europe would give any adc-
Quate remedy.
While sixty million Europeans still
are under food restaint, rationing or
similar systems" MI. Hoover said,
Poland, Austria and in minor de-
gree Czecho-Slovakia, were the only
countries where diminished food
supply might result from failure Of
credits. European harvests, genera
ally good, he said, might be sufficient
to meet their needs, but that in any
case thirty million bushels OF wheat
was all that would be involved. He
added that Europe found the money
somehow to take a 5illi0n dollars in
food from the United States in the
last eleven and half months"
"As to cotton, however, the prob
lem Of disposing Of our surplus is
much more serious" MI Hoover con
tinued, because experience has de-
monstrated that the governments and
the peoples will secure their food, but
that they will cut in textiles.
There is a marked tendency in
Europe to live on their own food re-
sources and make their harvests
stretch as far as possible through the
year which indicates that the Ameri-
can farmer must carry hereafter his
crops for longer period through the
year because the European demand
will only come at later months.
eve are trying to set up such ma
chinery as will prevent forced liQuida-
ton in cotton and sugar and negotia
ton through the banks Of the coun-
the mobilization Of private banking
capital in such way as to avoidi put
ting the burden on the government
why then we may have to call on the
government.
Happily there is short crop of
cotton this year and there have also
been artificial conditions. which have
depressed the market, such as the
long strike in England and the re-
parations discussion with Germany,
which worked to cut our cotton eX-
ports, yet the shelves of the world
are growing bare of textiles and we
can hope to carry over the surplus
until it can be sold at satisfactory
levels. A similar situation exists as
to grain, but it Is not so marked"