, 1934-12-08
World Cotton Authority Outlines
Reasons for Bankhead Opposition
a. w RI AYT0N OF HOUSTON
BY w. L. CLAYTON OF HOUSTON


Teeing to the farmer an American
COR parity price for the domesti-
cally consumed portion Of his crop
without placing any obligation on
him to curtail acreage, the farmer
would then obtain about Is 10
cents per pound Of approximately
40 per cent OF his crop and he would
get for the remaining 81 per cent
just what the world markets would
pay. 10 stands TO reason. that III
the long III he q not sell abroad
az more than the world price, any
way.
This program would almost surely
enable the American cotton farmer
TO hold his present foeign markets
and probably regain some that he
has already lost, and thus keep the
wheels Of commerce in the South
still turning.
Unless something II done quickly,
IL viii be too late!
There Is only n sound course
and that i an immediate and sub
Stantial reduction In the tariff.
Failing this, such money as the
Federal government has for dis
trtbutlon among cotton farmers As
compensation for the intuStices of
the tariff and the MIRA. should be
paid as a help to production anc
not as a bonus for curtailing pro-
duction. w. l. CLAYTON.
p. S.-Since the above was writ
ten, I have read an Associated
Press dispatch from Washington,
dated October %, quoting Secre-
tary Wallace Is saying that our
loss III cotton exports Is not due to
THE rise OF American cotton prices
under the agricultural adjustment
act. The really important cause OF
this reduction is the inability OF
some nations to obtain dollar eX-
change. The only way other nations
can get dollars with which TO buy
cotton is to sell goods or services
10 US. An increase In foreign pur-
chasing power and In foreign abili-
~ TO buy American cotton can b.
brought about IL this country per
mitS increased exchange OF imports
Tor u dollars. Otherwise We NAV
temporarily-or permanently - lose
2 part Of our cotton outlet which
has meant * much 10 the country
a. a whole"
] do not think any one recognizes
or appreciates more than I the
courage which Secretary Wallace
has repeatedly shown In his public
utteranceS. and there Is probably
nc man In the cabinet or whom the
American people, as a whole, have
q greater admiration. than they
have for Secretary Wallace, lust be-
cause ne has demonstrated time
and again he is not afraid 10 say
what he thinks. This characteristic
Of frankneSs and courage Il % rare
IN our public men OF today!
But when Secretary Wallace says
that our loss in cotton exports IL
not due TO the rise OF American
cotton prices etc. / am compelled
70 say that he Is not correctly in
formed IN this matter. II he should
say that u present high tariff will
forever prevent a Satisfactory price
for their customary exports az cot
ton, then ! would heartily agree
with him.
I think I have given sufficient
evidence in this letter. including
copies OF cables and letters from the
principal cotton importing coun-
tries OF the world. TO prove that the
main trouble In holding our export
outlets Is disparity In price between
our cotton and foreign grown cot
ton.
Furthermore. the figures on i'm
ports into the United States oil
America fail To bear out Secretary
WaLlace's contention that our loss
II cotton exports is due to decreas-
ing imports.
According TO figures OF the de-
partment Of commerce at WASH
ington, we reached the low wafer
mark in imports In 1892. our i'm
ports in that year totaling sl,322,-
T74.O0O.
For the year 1888, our total i'm
ports we're 81, 449. $50. TAO. showing
an increase Of nearly 10 per cent
over the previous year.
For the first eight months In
1884. U imports have been running
70 per cent greater than for the
same period In 1888. If this per-
Centage holds until the end or the
year, our imports this year will
b. close TO 10000, 900, 900. or about
IS per cent more than 1882.
In other words, the outside world
u In 1884 making available to them
selves. through their exports to us.
20 per cent more dollars for the
purchase of our goods than in 1898
but they are spending the money
for automobiles an dother manu-
features and buying their cotton
from our foreign competitors, for
the simple reason that they can
get IL cheaper there.
I want 70 repeat, with all the en-
phasiS that I can command, that
We will never maintain our trace
in cotton at satisfactory prices, ex-
cept by a radical reduction in the
tariff, but since the Democratic
Of which I am a member, has
been in office now for over eigh-
teen months and. despite platfrom
and campaign promises. has con-
tented itself. I am very much afraid
We have missed the boat on
this issue 50 far as the present adj
miniStration Is concerned.
Meantime. we had better remove
those government restraints which
now serve to hand our foreign mar
k0S for cotton owe TO our competi-
tors unless we r prepared to lose
those markets permanently.
FOOtnOte. - Replies to
cable inquiries indicate conditions in
the foreign markets. Following arc
a selected few reports from foreign
correspondents: From Osaka ia
pan: Egyptian continues 20 sell
comparatively cheaper. From Bonn
No business: Californian mills
Uganda cotton. selling so
points discount under good middl-
ing Lula; also Egyptian seems un-
.derSelling. From Milan: Poor pros
Egyptian cotton much cheap
er than American. From Hayre:
The important production OF Bra
I'll