Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-09-27
COTTON'S IMPORTANCE
BY FREDERIC ]. HASKIN

One single crop of the American
farmer is sold abroad In sufficient
quantities to swell the foreign COM
merce of the United States in an
amount equal to the entire favorable
merchandise trade balance of the Ma
ton. That crop Is cotton. Singularly
enough, the value of our cotton ex-
ports over long period of years, with
the exception Of the European war
years, has been almost exactly that OF
our trade balance.
This interesting sidelight on the
importance of King Cotton Is develop
ed in a discussion Of postwar changes
in the destination Of United States
cotton exports by Robert Skliar OF
the Textile Division Of the Depart
ment of Commerce.
The important position which raw
cotton holds in the foreign commerce
Of the United States is common knoWl-
edge, he says, but 1t is not generally
realized that the value Of the cotton
exported is normally as large as or
larger than the excess or totai
merchandise exports over total mer-
chandise imports.
During the years from 1905 to 1914
the favorable balance of the United
States foreign trade In merchandise
was $4,76S, 000,0 while the value OF
the raw cotton exported during the
same period was $4.875 900 .000-S10S'-
900 900 more than the trade balance.
This means that the great cotton
growing industry Of the South, after
providing the country with practically
all its material for cotton clothing.
cotton yarn and fabrics for industrial
purposes and the tnnumerable PROD
ucts obtained from cottonseed, con-
tributes to the United States exports
an amount which "a normally more
than sufficient to give the Nation It's
favorable merchandise trade balance.
This contribution to the exports
amounted during the past 20 years to
more than $4,000. 0o0, 900.
Different During War Years.
While the World War was on and
during the immediate postwar years
cotton did not hold such q pre-
eminent place In the foreign commerce
Of the country. This was due to the
tremendously increased exports OF
foodstuffs, munitions. other iron ana
steel manufactures and other prod
ucts, but cotton is now regalning ats
former relative Importance.
Thus for the last three calendar
wears the excess of exports of mer-
chandise over imports was $719,0OO,-
900 in 1922, $375, 100000 in 1928 and
1886, 900 900, or grand total of w.
069. 900 900. Cotton exports for the
same years had a respective value
of {673, ooo, 900, 1907 900 900 and $s51,-
600 900, or in the aggregate $2,43l,-
0oo, 900. In 1929. 1t will be noted, the
value Of the cotton exports was more
than double the favorable trade bal
ance.
During the last fiscal year the ex-
ports of raw cotton were the largest
sinele-year shipments for decade,
and almost equaled the pre-war level.
They total S,205 900 running bales. ex-
ceeding the postwar annual aver
age by 2,014,000 bales, or 33 per cent,
and came within 900 bales. or 2
per cent Of the pre-war figure.
Since the war the acreage. domestic
consumption and prices OF United
States cotton have increased, while
Weld per acre, total production and
exports have declined as compared
with the pre-war figure.
In analysing the export business It
Is found that less American cotton
is now being. sent to Europe than
formerly, but more is going to other
countries, notably Japan. However,
during 1924.25 Europe came back az a
strong buyer Of cotton, taking 2.lSS,'
900 bales more than in the preceding
year OF this increase the United
kingdom and Germany took by Tar
the greater part, the former $4,000
bales more and the latter $4,000 bales
more. Exports to France were 1885,
900 bales larger, to Italy 184, 200 bales
larger, and to Spain 10000 bales
larger. Shipments to Russia more
than doubled, and to Canada Al per
cent more and Japan took $4,000
bales more. or over three times its
pre-war quantity.
,, For all the increase shown in 1924-26
over 1924, however. the United
Kingdom, the largest single buyer of
American cotton, only took three
| fourths of the pre-war yearly quantity,
| while Germany took slightly more
than three-fourths of her former pur-
! chases. and Frances requirements
were IL per cent less than prior to
the war. On the other hand, exports
| to Italy were about so per cent higher
and to Belgium - per cent higher.
Dhale the quantity e9 eettoo Ooln r