Evening star., 1933-12-03

cal position Of cotton. 1t is a goal
which Is in sight within a compare
lively short period when one considers
the magnitude of the task involved
] am In complete accord with group
of cotton manufacturers who, through
the Cotton Textile Institute, have con-
sistently advocated and initiated meas
ures designed to increase the consump-
tion of cotton Restriction of planting
as is contemplated this next season and
the destruction of the growing crop this
last season is, to my mind, purely an
emergency expedient. The accumula-
ton of the vast surplus justifies these
programs. The restriction OF produc-
ton should not be taken as a permanent
plan.
Secretary Wallace has pointed out
from time to time that America must
eventually decide whether we shall
adopt a policy which will lead to the
development Of export trade, and the
recapturing Of cur foreign markets. or
whether We shall follow the course of
extreme nationalism. Until that issue
is decided, permanent policy for cot
ton must necessarily be held in abey-
ance. None of us who produces cot
ton likes to contemplate the continuing
and endless restriction of cotton pro-
duction. American cotton is world
crop and any governmental policies
that result In the shrinking of our ex-
port outlets would likely mean an even
more drastic reduction of our cotton
acres. The economy Of the South would
necessarily undergo severe adjustments.
do not believe such course, as far
as cotton is concerned, is likely. From
the viewpoint of the producer and the
cotton trade it Is. certainly. not to be
desired. So, while the Government Is
engaged in the control of production.
industry should not curtail its efforts
to develop additional uses. Aggressive
merchandising policies should be con-
tinued to increase consumption.
At the same time. it is desirable that
the possibilities of increased exports be
carefully explored.
Benefit from Money Policy.
But these things cannot be accom-
plished quickly. Adjustments are nee
eSsary If there Is to be a sound basis
for fair-exchange prices Of cotton. A
supply of 26,ooo.OOO bales of American
cotton in single season is. too much
NOtIOll CNCll III lllC WOl III VI 1879.
The South has received tremendous
benefit from the administrations none
tary policy as the current exports Of
cotton have maintained comparatively
high levels This is due. in large
measure. to the differential in the dol
lar and foreign exchange Foreign
buyers can obtain American cotton at
about 6 cents a pound on a gold basis
while the American farmer receives
about 10 cents in our own currency
This situation is significant from sew
eral viewpoints. In the first place, the
producers debt-paying power, II moi
his purchasing power, is increased.
A distinct advantage also accrueS in
our production control program. One
of the most frequent criticisms of the
policy Of the American cotton farmer
producing less cotton is the claim that
while America is reducing, other areas
will expand production. The best
remedy for scent cotton Is scent cot
TOM the skeptics say. But the present
administration is committed against the
policy of controlling production by star
walton.
When American cotton becomes TOT
dear, undoubtedly foreign growths will
become important competitors. For A.
lands adapted to cotton production. Yet
there is a possibility of increased for
eign production when cotton prices &c
high enough to take care of expensive
production costs. do not believe for
eign competition is a serious problem sc
long as Americas program is confined
to the attempt to relieve surplus anc
does not become an effort to create
shortage I know that We have moth
ing to fear so long as foreign spinners
can buy American cotton for around
cents pound.
$500, ZOO, 600 Added to Income.
The 1893 program achieved its in.
tended goal. 1t prevented the sociaI
and economic disaster to which I have
alluded, and when favorable weather
conditions and other natural factors
yielded the grower a normal crop, de-
spite an average reduction of one
fourth of the acreage, the individual
farmers financial position was sub
stantially strengthened. 1t has been
estimated that as a result Of the Gov
ernment's program. more than SSC0,
600. 900 have been added to the Soutn
cotton income. I think that is COR
servative estimate. The results OF TINS
increased purchasing power are evident
throughout the South.
I have observed at first hand, nu-
merous examples of recovery in the
South. Typical is one county in West
ern Georgia The county seat, a town
of less than 10000 population, reports
sales of automobiles exceeding $4,000
weekly. The salaries of city and coun-
ty officials have been restored after
having previously been reduced 20 per
cent. Only per cent of the county
taxes remain unpaid. Merchants are
enjoying a thriving business. This
situation is duplicated to varying
degree in the more than 800 counties
in the South where cotton is produced.
1t should be clear from the foregoing
that here is a program that will work
successfully for the farmer. Money
is placed in his hand. The excessive
supply of cotton is adjusted toward
the normal statistical position"
Cites Exchange Advantage.
I have not been among those farmers
who, finding nothing better upon
which to vent their discomfort, rail
against the commodity exchanges.
recognize that the Cotton Exchange
necessary function for those who pro-
for manufacture or export 1t affords
the producer a ready market. 1t gives
| the buyer protection against price
fluctuations. The Cotton Exchange
has been singularly free from criticism
during the depression. It has never
been necessary to utilize the entire
margin in which prices may f1uctuate
during a single day
It has been my view for some time
that when the cotton producers of the
country come to use the exchange with
the same intelligence that is evidenced
by mills and buyers, complete cycle
will have been formed. There is op-
| portunity for the producers of our
basic agricultural commodities to use
the commodity exchanges for their
own protection. Extensive develop
nent of such a system Is not prob
able under our present agricultural
| economy. although large producers
-.'--ss r