Evening star., 1933-11-05
7EN-CENT COTTON
SETS BUSY PACE
IN TENNESSEE
FIood.ContrOI Work Creates
Jobs for Thousands in
Valley.
Special Dispatch to The Star.

MEMPHIS, Tenn. November A.
With cotton pegged at 10 cents a pound,
and the Government going forward on
the Muscle Shoals and the food control
work on the Mississippi, Tennessee Is
approaching the Winter with brighter
prospects that at any time since the de-
preston began So confident is the
public G. nerally that the Public Works
Administration is having a hard time
enlisting the cities and counties in pub
lie improvement plans
Gov McAliSter's successful conference
with Harry L. Hopkins, Federal relief
administrator, through which the State
will rot be required to put up S2,000,000
in order to get S6,OO0,000 in Federal
funds, has eliminated very embarraSs-
ing situation, and made it unnecessary
to call the legislature a happy solution
result. community fund organizations
in the big cities are going forward with
their preparations to care for the
needy, aidsd by the public works pro-
gram.
Business is particularly up in Mem
phis, the center of the cotton market.
AS an evidence of this, the bank clear
1ngs for the last week, the last month
and the first 10 months of the year
showed an increase over the same pc
riodS last year, for the first time since
December, 1929, a stretch of 46 months.
October figures were s23 100000 over
last October. Much Of this increase
comes about because Of the healthy
movement Of cotton. This time last
year cotton was dragging, the farmers
were discouraged, and there was no
buying Now cotton is moving. If not
the farmer may get a loan Of 10 cents.
Since much o. the cotton vas made FOR
nickel a pound, the profit is salts
factory
The buy now campaign had bene-
fetal results throughout the State, and
especially in the larger cities. A
brighter spirit Is noted. and there Is
every prospect that the Tennessee
farmers are about to assume their nor
NAL buying power.
Cotton farmers are expressing some
alarm, however, over a possible reaction
from the hog processing tax The hog
producing States are demanding a tax
products 9rtces because processing
tax on live hogs goes on this week to
reimburse the Government for the $40
100000 spent in buying pork for Fed
eral relief and also for exhauSttng sur
pluses. The cottonseed oil men have
asked the Government to buy 200 ,tO0,-
900 pounds Of seed products, but 40
action has been taken.
The hog tax starts at 4 cent /
pound and increase 4 cent a month
until it reaches 2 cents in February.
Although this tax Is to be on live hogs
and only a relatively small part Of the
hog goes into lard. the hog States are
demanding the equal tax per pound on
cottonseed oil.
The National Cottonseed Products
Association Is authority for the state
ment that if cents a pound is levied
on cottonseed oil, by February it will
mean tax Of $3.50 a ton on cotton
seed, and that this is liable to force
the price OF seed down to So a ton.
The basis for this statement Is that
in some sections seed Is now bring
Ing only around SIS a ton.
However, that is only one Of the Incl
dents OF the fight back to prosperity,
and is not a damaging one So salts
fed are many of the cotton farmers
that in some communities direct ex-
preSsions Of appreciation have been
sent to Washington There was little
impatience when it was first announced
that the 10-cent loan would be made,
because some of the farmers had to
have money Immediately, and the
loans were too slow. The banks swung
into action, and money has been pour
Ing out in the last two weeks. More
than $4,000 900 has been lent and this
Is merely the beginning.