Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-12
BY WILLIAM HARD.

Just about the most important con-
ference 90 far between Government and
business for the revival Of business &C.
tivity and prosperity Is happening to-
morrow in New Orleans, when the pri-
vate traders belonging to the Atlantic
Cotton Shippers Association will begin
meeting with governmental officials
headed by Secretary Of Commerce La
mont and Chairman Legge OF the Fed
eral Farm Board. The occasion VIII be
of such consequence that it would have
been attended also by Eugene Meyer,
new governor Of the Federal Reserve
Board, had he not been called to New
York by q death in his family. In
company with Chairman Legge there
will be Carl williams, cotton member
Of the Federal Farm Board, who takes
the open view that:
1.-THE man who does not buy cotton
now viii pay more for 1t presently"
Basis Of Stability.
Cotton being our principal export
product, as well as q basic product for
domestic consumption, the Federal au-
thoritieS regard its present plight as one
of the main obstacles to general price
restoration and stability throughout the
country. 1t Is noted here that the adj
vent Of Mr.. Meyer into the governor
ship Of the Federal Reserve Board has
been accompanied Immediately by q
considerable concentration upon the
cotton problem. The meeting at New
Orleans, while held upon the initiative
of the private interests composing the
Atlantic Cotton Shippers Association,
Is known to be in harmony with the
positive desires of Federal ofiicials.
The meeting represents definite ef-
fort to harmonic the public policies
and the private policies which, in the
matter Of cotton as well as in the
matter of other commodities In other
parts Of the country, have lately fire.
quently clashed. Private traders In
cotton, as in wheat, have in numerous
instances expressed themselves puzzled
and antagonized by the Federal Govern
ment's dealings through cooperative
societies and through sterilization cor
porationS. The New Orleans meeting
may be taken as a. deliberate endeavor
to establish now in cotton and perhaps
afterward in other lines of business
actions between governmental assistance
and private enterprise.
Must Stimulate Buying.
The basic question at New Orleans,
it Is held here, will be the same one
which Is perplexing every region Of
the whole country. That question Is:
What can start people buying more
of the basic ordinary things Of life?
It Is observed that movies and base
ball games and aeronautical exhibitions
have drawn vast aSSemblages. It Is OBJ
served that multitudes Of people are pill
ing up mounds of surplus money in saw
ings banks. It Is observed that people on
the whole are meeting their installment
payments for past purchases punctually
It is observed that even where there
Is great unemployment q large per-
centage Of the unemployed seem to be
carried along by members Of their fam
lilies Of by remoter relatives who are
still working with consequent smaller
need OF charitable rescue than pre-
dous depressions Of equal magnitude
have usually demanded. Tragic suffer-
ingS, 1t Is observed, exist; and yet, at
the same time, 1t Is equally observed
enormous funds exist which could
readily give an upturn to total business
II they began flowing In even q small
part Of their potential volume toward
enlarged purchases Of basic common
places.
At New Orleans the conundrum Of
how 10 give a start to that flow will be
the central query Of all present. The
problematical element chiefly studied
will be the psychology of the final pur-
chaser the ultimate consumer, Of cotton
and Of cotton goods.
Government Offers Many Aids.
The Federal Government has already
gone great distances toward financially
fortifying the primary producer Of cot
ton itself in his weary waiting for the
ultimate consumer to resume or increase
his consuming. The tale of the Gov
ernments special aids to the primary
producer in order to enable him to hold
out for cotton price advance stands
today as follows:
Out of a total existing world supply
OF American cotton amounting to some
twenty-one million bales, the Govern
ment's Cotton Sterilization Corporation
is holding some one million three hum
dred thousand bales which 1t acquired
at price quite higher than the price
prevailing today and which 1t has en-
gagged itself not to liquidate till next
July unless in the meantime a substan-
tial price advance shall have occurred.
The money for the holding Of these
one million three hundred thousand
bales Of cotton has been secured by the
Cotton Sterilization Corporation In
many millions of dollars from private
commercial banks in many other mil
lions Of dollars from the Federal inter-
mediate credit banks (Which, in turn,
have sold a corresponding amount OF
"debentures" TO private tnvestors), and,
finally, in many other additicScal mil
lions OF dollars from the Fede.G Farm
Board, which derives its resources di-
rectly from the Federal Treasury. The
total Of public and private funds thus
involved in actual outright withdrawal
of cotton from the market Is placed by
Carl Williams, cotton member OF the
Federal Farm Board, at above eighty
! flve million dollars.
Mr.. Williams further states that on
an appropriation Of some two hundred
and AffNt ranillinNa dollnrn from C0Y1nHASg