Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-07

active opponent of the sale to Germany,
has been joined by other Senators,
growers and traders. They want any
sales made out of the current crop. lest
an important market be supplied by
surplus stock. With the new cotton
crop expected to equal the old in bulk,
although actually the acreage Is about
10 per cent less, this position on the
part of cotton growers is assuming more
stubborn proportions.
Berlin Also Protests.
From Berlin came more protests over
the plan, understood to call for about
500 900 cotton bales, because the view
ives held there that the deal apparently
was for the purpose of helping the
Farm Board out of an embarrassing
situation.
Bremen cotton dealers also reported
receipt of kilograms from American
traders, particularly the New Orleans
/ Cotton Exchange, which cabled the
Bremen Exchange 1t has telegraphed
President Hoover as follows:
we most sharply protest the pro-
posed sale Of Farm Board cotton on
credit to a foreign government"
Foreign dispatches pointed out that
there is already on hand or en- route
to Bremen 3T7 900 bales of cotton, most
Of which imports were financed through
American banks. Germany's total re-
uuirements for the year are estimated
at 900 900 bales and the purchase of
500 900 bales from the Farm Board
would complete the whole years quota,
and might make 1t difficult to move
the present holdings at Bremen in time
to meet bank credits when due
Moreover, these critics were reported
to have said that If SOC, 900 bales we're
to be purchased at fiat price the
German textile industry would be led
into the same speculative position
which already has cost the United
States Farm Board so much money.
1t would they said not be safeguarded
against possible further slumps In
price.
French Importers Object.
Fearing unfair competition, French
cotton importing interests which have
their headquarters at Havre are max
ing strong protests against the extern
sion of easy credit terms to Germany
for large quantities of American cotton.
The president of the Havre Cotton Fac
tors Association yesterday cabled a
protest TO Secretary Of Agriculture
Hyde in Washington Such sales
NOuiA NC I1CdAlN COIiIIdI4 W lckll1Il1dtC
trade interests and would be gravely
prejudicial to faithful customers of
American exporters" the message
stated in part.
In the face of increased protests
from Southern Senators and cotton
traders and growers, Carl Williams, a
board member, declared the cotton trade
had taken a contradictory attitude"
in opposing the suggestion that a part
of the surplus be sold to Germany
He declared there was no question OF
dumping but that the proposed trans
action would be the same as lending
money to Germany.
Little hope is held for the disposal
of any wheat to Germany under q
long-term credit plan, because that
country has an unusual large produc-
ton of grain this season.
AS in the case of wheat, 1t has been
the Farm Boards plea to the cotton
growers that they reduce their plant
ings. These pleas have been ignored
1t was said, in most sections. AS a
result a new surplus of cotton is being
grown this year to be laid on top of
the big carry-oyer from last year.
The cotton sterilization project OF the
Farm Board. protestants claim, has
been no more of a success in keeping
ap tAtS PitSS "a NaAae 9taPAI eiAeii was TIC
boards venture into the wheat market
The board, in an effort to peg the
price OF cotton around 10 cents pound,
in June, 1890, took over through the
Cotton Sterilization Corporation, l.
coo 900 bales on which 1t had made
loans to co-operatiyes from the previous
October. on basis Of 10 cents pound,
or $50 a bale Added charges brought
this figure TO about $83 and since
June, 1890, an additional carrying
charge of SO or 81 bale has accrued
bringing the total investment TO some
thing over $ll5,0O0. 900. Today this
cotton is not worth any more than
half of that. With cotton selling re-
Gently between and s cents pound,
the board would take loss of some
thing like $S0,000,000, If it sold its
holdings "at the market"