Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-05
COTTON PLANTING
PLAN IS WATCHED
Economists Fear Restriction
of Acreage May Not Stimu-
late Prices.
BY J. C. ROYLE.

The amount of land planted TO cot
ton this Spring Is exercising q de-
cidedly unsettling influence On the
cotton market. Many economists fear
that there is backlash in the efforts
of the Federal Farm Board and of
many business men and financiers 10
restrict cotton production,
The Farm Board and the co-opera-
tive organizations sponsored by the
board declare that a decrease Of IS
to 80 per cent will be necessary to
bring American production within
reaching distance of demand. Many
market traders feel that q reduction
of 20 per cent would be necessary to
have stimulating effect on prices.
The farmers, however. have given no
indication as yet, according to private
estimates just compiled, Of cutting pro-
duction to the extent indicated above.
Other Efforts Recalled.
Economists fear that the effort TO
control production, marketing and
prices will correspond to that which
followed the Brazilian coffee valoriza-
ton scheme and the effort of Great
Britain to limit the output of rubber
from the British East Indies. The
Brazilian scheme resulted in that coun-
try losing more than IL per cent Of
its coffee trade with the United States.
Most OF this was transferred to Co
lumbia. The efforts of the British au-
thorities in the Straits Settlements
simply resulted in the increased pro-
duction of rubber in the Dutch East
Indies, Liberia and Brazil.
1t is feared that reduction in cot
ton production may have the effect of
favoring the Indian, Egyptian and
Chinese producers. At the present time
prices for Egyptian, Indian and Chinese
cotton are not on parity with those
of American cotton. This Is leading
to the purchase Of Egyptian and In
dian cotton in preference to the Amer
lean staple.
On the other side of the picture,
however, there has been strong and
consistent trade buying of cotton
throughout the world recently. The
British mills are opening up and max
ing worldwide campaikn to increase
their trade. The prospects have been
frightened by progress OF developments
in India which may eventually lead to
adj Istment of chaotic conditions there
and the removal Of the embargo on for
eign cotton goods.
The volume of finished goods being
purchased in the American market Is
extremely high. In fact, 1t has been
the largest in several years. Spinners
are uncertain as to just what the course
Of prices viii be, owing to the heavy
holdings Of cotton by the co-operatives.
The cotton manufacturers are continu-
ing to reduce stocks and to manufac-
cure less goods that are going into con-
sumption. It is estimated that nearly
100,000,000 yards q month less are
being produced at present than year
ago. Even so, there are 10 per cent
more workers employed in the textile
industry today than a month ago.
Cotton Dresses.
Cotton dresses are declared to be
more popular today than any time in
many years. This has resulted not only
from the low price levels, but because
Of the development of exceedingly at
tractive new designs. The American
manufacturers apparently have the do
nestle field entirely within their grasp,
since the imports of foreign cotton
goods are scarcely more than enough to
act as samples for the American manu-
facturers.
Garment manufacturers feel that
their business will be decidedly better
this year than in last March. Indica-
tons to this effect are seen in the call
for work clothing which has developed
In the last fortnight.
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