, 1934-12-08

OF price disparity. i also attacl a
memorandum from Mr.. RI. Renfert,
president Of the Galveston Cotton
Exchange, giving a few extracts
from cables and letters received by
his firm.
i think even a casual perusal of
these reports will convince any one
that American cotton Is now sub
s%tantially priced out OF the worlds
markets.
Within the past few days, the
New York Cotton Exchange Stats
teal service has reported that In
dian cotton Is now selling az a
greater discount under American
than any time In the past four
years.
The truth OF the matter i that
our government Is holding a huge
umbrella over the rest OF the cotton
producing world. enabling them
substantially 70 increase the grow
ing and marketing OF cotton at re-
m~unerative prices 70 them, while
such cotton as we have produced.
after paying farmers 70 plow up
and not TO produce, Is largely 60
ing into the hands OF government
agencies where Ii is removed from
the channels OF trade. Cotton mer-
chants I'm this country are now un-
able to offer the most desired
qualities. because practically the
entire supply of such cotton IL either
in the hands Of government agen-
cies or Is earmarked for same.
II the consumption OF American
cotton is, this year. reduced to H.
100000 bales or less, as now APP
pears practically certain. u for
eign competitors having supplied
the markets with some 5000. 001
bales which formerly came from
Us, then we may be equally certain
that III, 100000 bales Is in future
maximum share OF the total
world consumption Of ctoton and
that We can only maintain that
position II we are willing TO meet
the world price.
The only way We could hope ID
recapture a part Of the markets
which we had voluntarily surren-
dered would be through a reversal
Of the program under which they
were lost. iye., by driving the price
OF our cotton below the world price
II We are going TO continue our
present policy Of trying TO force the
rest OF the world TO pay our own
idea Of price then we must be re-
signed TO a further cut In the
amount Of cotton which we can
market. Another year Of this policy
Will probably reduce our maximum
available markets 70 100000 bales
ana then we can hold that volume
only BY facing the facts and meet
ing our competition,
Sooner or later we must face the
facts.
~ would be difficult 10 exaggerate
the importance OF this subject to
the South and indeed to the Ma
ton.
II we must accept a cut III our
share OF the worlds cotton trade
from 100000 bales 70 100000
bales, this means not only a heavy
loss TO the farmers in cash income,
but II also adds to the unemploy-
ed rolls hundreds of thousands OF
people who have heretofore earned
their living as tenant farmers, cot
ton pickers, employees OF cotton
gins, cottonseed oil mills, cotton
congresses. cotton buyers and
shippers, transportation agencies,
etc.
The destruction OF hundreds on
OF dollars invested IN these
facilities would also follow.
The direct and indirect effect OF
employment, not only in the South.
but IN the Nation itself, Is certain
70 be a heavy drag against National
economic recovery.
IL will not be difficult to imagine
the consequences TO Texas and to
Houston and Galveston Of a de-
velopment OF this kind.
Despite the fact that this years
crop Is n Of the earliest on re-
cord. the receipts Of cotton AZ
Houston from August / to October
~, 1884, are only 572.849 bales.
against same period last season or
l.04l -976 bales, and the exports
from Houston for the same period
this season 275.32I bales. against
period last season OF 655.5O9
Once foreign countries have ex-
banded their production and pro-
vided for cotton ginning, compress
ing, handling, shipping. etc. IL Is
going 10 be an easy matter Ia
drive them from the field.
Already many Of these countries.
such as Egypt, Brazil. Persia. etc,
are entering into barter tranSac-
tons with European nations, par
ticularly Germany, for the exchange
cotton for manufactured goods
The truth Is that our National
on the tariff and other trade
destroying devices plus the new
cost Of living burdens Saddled upon
the cotton farmer by NRA have
the American cotton farmer
a position where ne Is fighting
for his very life with his hands
tied behind his back. Add to this
present AAA policy OF paying the
farmer to abstain from pro
fuction plus the government price
oeggtng policy Q2-cent loan) ana
you have a situation which Is fast
the raw cotton industry
1f this country on the rocks.
@AA@1AN AAAQ0N4AlA0 VI NVNNJn
farmers, who obviously can
not complete with their government
a bidding for the rental OF farm
andS, have given I'D the struggle
and gone on relief rolls.
I am reliably informed that more
100000 Texas farm folks are
IN relief.
OF course, there Is the drouth, but
we've had drouthS before.
What we have never mad before
: Texas farm people forced 10 ask
he necessities Of life from the
anne government that paid their
employers 1.-THE landlordsl to de-
them OF their jobs.
AS Secretary Wallace has said, III
fleet, a normal and healthy con-
iiti0n In the cotton market can lie
-eStored only by a material re-
iuction in the tariff permitting cur
customers to pay with
This IL. obviously. sound and