New-York tribune., 1921-06-01
Mere Liberal Credit and
Help in Exports Sought
to- Improve Industry at
Conference Of Leaders

Goverurnen aid for the raw cotton
industry IN the shape of reduction
OF the Federal Reserve rediscount rate
on agricultural and industrial paner
to per cent, the extension OF loans to
farmers, and the opening up of ex-
port trade through the efforts of the
War Trade Financing Corporation and
the Department of Commerce were
recommended in resolution passed at
the closing session yesterday of the
National Cotton Consultation Confer
ence, held under the auspices of the
American Cotton Association at the
Hotel Pennsylvania.
Another resolution introduced by
Il. o. Tomlinson urged the cooperation
OF cotton growing states to attempt the
solution OF the present stagnant mar
ket for the staple. In connection with
this resolution it is pointed out that no
attempt at fixing the price of cotton
is intended. The conference also urged
the adoption OF the United States stand
ard of grades in cotton dealings with
IN this country and instructed the dele
gates to the World Cotton Conference
IN England this month to lay the propo-
sition of worldwide adoption of the
American standards before the confer
encs.
IMPROVEMENT in the European stu
alton, upon which a revival of trade
in this country depends, was fore
cast by former Senator Hoke Smith, of
Georgia
Pleas for tariff or long staple
Egyptian cotton were urged by Dwight
P. Heard, of Phoenix, Arz., who as
serted that the Arizona cotton industry
was threatened with destruction by
Egyptian competition. 1T cost the
A-s- 20
pound to produce their long fiber
staple last year." he said, land Egyptian
sack cotton has been laid' down in New
Bedford lately at % cents pound.
We cannot compete with the native
Egyptian labor, paid but 40 cents
day. The cents pound duty pro-
vlded IN the emergency tariff will give
a little relief, but we need protec-
ton of at least 20 cents pound"
Disclaiming expert knowledge of the
cotton market, DR.. B. NJ. Anderson jr..
suggested caution in connection with the
policy of financing the export of cotton
TO Europe, not for immediate sale, but to
be held in Europe until trade revival
there. He pointed out that the price
of cotton in Liverpool has in the past
six months generally been below the
normal parity with New York cotton
prices, and that at times it has even
been profitable to bring back raw cot
ton from Liverpool for sale in New
York. He said that if very much cot
ton were exported TO Europe TO be held
there for future sale the psychological
effect on European markets might be
bad. He said that the real problem is
to start European industry again and
to encourage exports from Europe. In
this connection he opposed protective
tariffs directed against European manu-
facturers. Dr. Anderson spoke as the
representative of the New York State
Bankers Association. He stated that
there was every disposition on the part
of the banking fraternity to cooperate
in facilitating the export trade.
Other speakers at the conference
which closed with a banquet last night
at which Hoke Smith acted as toast
master were Charles H. Mcdowell,
president of the National Fertilizers
Association, who advocated the greater
use of fertilizer in cotton growing;
Lincoln Cromwell, director of the Mer-
chants Association of New York, who
extended the greetings of that body
and OF the city; Arthur r. Marsh, for
mer president of the New York Cotton
Exchange, who defended the great cot
ton markets as price stabilizers; Allen
A Walker, of the Guaranty Trust Com
pany, and Mrs L. A. Richardson, of
Alabama, who traced the history of
cotton and women's part in it from
Babylonian times.
WASHINGTON, May 31.-Formal ex-
preston by Secretary Hoover OF the
belief that extended credit facilities
are vitally needed in Southern cotton
states and that Federal Reserve system
credit curtailments, having served their
purpose, "are now bringing great hard
ship is contained in letter from Mr.
Hoover made public to-day by former
Senator J. L. McLaurin, of South
Carolina, who conferred with the Sec
retary last week regarding the cotton
situation at the suggestion of Presi-
dent Harding.
Confirming views he had expressed
verbally at the interview, Mr.. Hoover
outlined a policy toward cotton en-
bracing four phases: First, credit ex-
tension through cooperation of Reserve
and member banks; second, better or
ganized export credit machinery to get
American cotton into American-con-
trolled warehouses abroad; third, i'm
proved warehousjng methods to make