Evening star., 1927-09-28
General Approval Given Ban
On Cotton Price Forecasts

The order given to the Department
| forecasts of cotton prices, such as that
J which caused a serious development
| in the market, has been widely ap-
proved by the press. Some cOndemna
| ton of the department for permitting
| the statement to be issued is found in
| the comments on the subjects. which
as rule support the protests made by
Senators from the Cotton States.
when the bulletin referred to was
issued by the Bureau of Agricultural
Economics" according to the Birming-
ham Age-Herald "the cotton markets
were strong. They were recovering
from recent sharp setback. Indeed,
prices were being rapidly stabilized.
Domestic and foreign spinners agents
were ready takers of grades at pre-
vailing prices, but when this official
bulletin was issued a great weakness
developed. Buyers became sellers.
Legitimate dealers ran to cOver-and
that cover implied selling what just
now the whole trade wanted to buy"
The Age-Herald holds that when any
department presumes to influence pub
lie opinion or to shape values or to
make editorial predictions. that de-
partment loses it's value to the Amer.
lean people: it becomes. instead, n
menacing and dangerous instrument; !;
it could become a criminal instru.
nlent."
The general value of the depart
ment's service is conceded by the Fort
Worth Star-Telegram. Its crop
statements and commodity state
ments." says that paper, ''serve a
good purpose. There is need for some
official prOnouncement concerning
yields and available supply, in order
to prevent manipulation of the mar
ket. as well as to scotch wild rumoTs
which might have effects in the mar
kets at enmity with public interest.
But when these statements themselves
supply the opportunity for manipula-
ton or the spread of wild rumOrs
which have a deleterious effect on the
market it is obvious that the proper
purpose is not being served"
'"The Secretary of Agriculture calls
attention" remarks the Philadelphia
Public Ledger. Ito the fact that al
most exactly the same sentence in the
report a month ago had no such con-
sequences and wonders why it's repe
tition in September should have raised
such ructions. But, in any case there
Is general agreement that these re-
ports should be confined to actual sta
tistical facts and that the drawing of
conclusions as to price trends should
be left to those whom it may concern.
Secretary Jardine has taken the only
wise course in the circumstances"
The Meridian star agrees that there
is something wrong in a government
tai system of estimates which varies
from 80 to 40 per cent overnight"
X II y
Guessing future prices of agricul-
tural products" in the judgment Of
the Milwaukee Journal. lis as little
a part of the function Of government
as guessing the price of steel or shoes
or ribbons would be. And one can
would go UP II the Government be-
gan predicting in like manner drops
i'm rrices of merchandise on dealers
Shelves or Of products in factory ware
houses" The Port Arthur News adds
its testimony that the bulletin under
discussion made the cotton market
sick. clipped off $3.50 per bale from
the price of the fieecy staple. robbed
the farmers of Texas of $4,000, 900
and the growers of the United States
of more than 0,000 ,00O." The News
quotes the offending statement,
Should the present estimate of pro-
duction be realized and past relation
ship between supply and price prevail.
it is likely that prices will decline in
the next few months
Approval of discontinuance OF the |
practice is expressed by the Newark |
Evening News. which adds that lit
might we'll be followed up by the care.