Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-11-29

make profits possible. II is the pur.
pose OF the South Texas Chamber OF
commerce to study carefully the in
austrian possibilities OF the area
embraced IN its organization and II
viii not recommend the erection oi
any factory regardless OF what line
q activity y involved unless ID Il
Ieit conditions are such that IL il
possible for the factory to be profit
aoie. Otherwise a liability rather
IMAM an asset will be created, and q
single failure Is much more widely
advertised than a multitude Of sue
cesses.
IN large percentage Of all the cot
ton grown IN the world is grown IN
the area broadly termed the South
ana II has been stated repeatedly
froFa speakers rostrums that the
time would come when every pound
Of this cotton is spun into yarn IN
the South and woven into cloth IN
me South, which would mean n 4
me SIX bales out OF every ten grown
N the United States now exported
overseas would be converted into
finished products IN the South. And
since practically ali the cotton pro-
duets consumed in the United States
areenow manufactured in the United
states. this would necessarily mean
that the market would have 10 Be
found overseas for two-thirds W the
finished products OF the cotton in
duStry now represented BIZ the two
thirds Of all production which IS ex-
ported in its raw state. On the
face Of the matter. this is not a prac-
teal proposition since the labor cost
81 manufacturing overseas il rarely
more than 80 per tent or the labor
cost In the United States. which
alone makes il impractical for Unit
"a States manufacturers to compete
IN foreign markets 70 an extent that
would enable them 10 dispose OF any
large part Of tie enormous volume
OF finished products for which they
would be forced 20 find n market.
Great Britain and Rubber
III will be recalled that only a few
years z Great Britain arranged
for an export duty on rubber. there
by greatly increasing the price in
the United States. the immediate Ell
feet Of which wss the planting by
American manufacturers Of a great
many rubber plantations il the
American tropics Notwithstanding
that i required a number of wears ~
ecure production.
Were 40 possible for the United
States 10 manufacture al cotton
grown in the United States. there
by cutting off the supply Of raw ma
terial now consumed hy foreign cot
ton manufacturers, there Is ahso-
iutely no question that these same
foreign manufacturers would find
means Of financing the wholesale
production of cotton IN India. Egypt.
Brazil. Argentina. Paraguay and Pc
rn. and that with the cheap labor,
absence Of land taxes in most cases
and many other favorable conditions
prevailing in all or part Of these
countries. they would shortly ne In
position 20 produce cotton cheaper
than Il will ever be possible for the
American farmer 20 produce II nm
less outside means Is found 10 en-
able him 10 eliminate a major por-
tom Of his present production cost.
THE South Texas Chamber Of
Commerce believes that in addition 20
the cotton industry there are many
other lines Of manufacture that can
be successfully carried on in South
Texas. To be successful the pro-
duction in some lines would have 10
be limited 20 the consumption in the
Southwest. while other lines could
undoubtedly successfully compete for
markets ~ far east as the Middle
West. in Mexico and. In some ex-
ccptional cases. throughout the Unit
ed States"