Imperial Valley press., 1921-07-19
HIGH Pr ICE
WOULD Be
BENEFIT
To ALL
Sharp Advance in Cotton
Market Would Increase
Movement, Stimulate In
dustry and Assist in Cen
eral Liquidation.
(By W. W. MORRIsoN)

In these letters last week it was
pointed out that substantial ad-
vance in the price Of cotton would re-
lieve not only the cotton situation,
but world conditions generally. Since
then many things have developed to
confirm the fact that this view is held
almost universally by business men Of
all classes regardless of whether their
alliances are with the producing or
manufacturing interest, or whether
they have any alliances with these in
terests at all. Owners of steamships,
railroads, bankers, international finan-
clers as well as producers, and SPIN
ners, hold alike to the same opinion
While this is most unusual, it is not,
as a matter of fact, unreasonable.
You see, high prices would greatly
increase the volume Of cotton moving
and would. as result, greatly benefit
the transportation lines; for what they
need after all is not higher freight
rates, but sufficient volume. of busi-
ness to bring all idle cars and idle
ships into use. A stiff advance in
price would also bring about the liqui-
dation of many obligations, which
would swell the amount Of liquid cap,
ital flowing into the channels of COM
meree. 1t is reasonable that this
would bring about the organization Of
many new business enterprises and
greatly broaden the activity Of those
that are already in existence. It
could be expected also to greatly in
crease the output of our manufacture
ing industries and, as a consequence,
reduce the amount of idleness among
our labor population.
Almost every country in Europe ex-
cept Germany, is loaded up with high
priced cotton Or high priced cotton
goods. 1t is tolerably certain that this
fact has had more to do with reducing
the volume Cf American cotton moving
to Europe than the inability of con-
suming interests to finance it. A
good advance in prices would bring
about, almost Immediately it is
thought, liquidation of this situation
and would result in bringing the out
put of many foreign mills up to ca
pacity, giving employment to addition
al labor and, of course, increasing the
consumption of our cotton abroad.
So you see that, while the universay
character of this belief as to the bene-
hts of strong advance in the price
of cotton is unusual, it is not, after
all, in view of these prospectice re-
suits, unreasonable.
There is another phase Of the bene-
| 1icient effects of an advance i'm the
price of cotton that is most interesting
and most important, and that is, it is
the only hope of tranquilizing the cot
ton business and saving it from what
seems disastrous disorganizatio1 in
the near future. 4.
| You see. accordingSto calculations
which conform to sound business US
age, the production ofs the growing
crop is going to cost well above 20c per
pound. Even II. you figure the items
at the very cheapest prices which have
prevailed at any time during the 20
years preceding the World War, stncse
calculations will show that cotton can
not be produced at current prices with
out imposing on the producers q stan
dard of living unthinkahle for Ameri-
can labor, and especially for the white
race of the South, upon whose labor
the world must depend for rs per cent
of the crop. This view becomes =
pecially emphasized in the light Of the
new visin of labor and. particularly.
the new vision Of that element ,of the
white race who have been engngod
heretofore in the production Of cot
ton.
(This is the second article On tho
general subject Of cotton economics
by Mr.. Morrison. A third VIII ~ 1Qh.
lished soon.