Evening star., 1934-12-31
SURPLUS REMAINS
DRAG ON MARKET
26, 900, ,0O0- Bale Excess Not
Likely to Be Cut Down
Materially.
Continued From Page BID

CONTINUED From rage b-lD
Of milk per COW, but the number of
milk COWS on farms did not decrease
largely. 1t is pointed out that de-
crease is not necessary; that the de-
mand should be increased by reducing
the spread between farmers and re-
tail prices, by distributing milk free
to undernourished school children, and
by Government propaganda to stimu-
late greater consumption. The pos
sibility of declaring the milk industry
a public utility has not yet been ex-
plotted, but the trend of public opinion
is not far from giving it support.
Briefly the outlook for the dairy in
dustry for 1885 appears to favor con-
tinuation Of the moderate upward
trend of the last two years. Prices
of butter and cheese have improved,
and the surplus milk situation OF
year ago is now non-existent.
Income from meat animals and
grains was naturally greatly restricted
in 1884. Forced sale of live stock be-
cause of the inability to furnish food
and water did not yield large profits,
both because of the glutted markets
and because of the poor quality OF
the live stock slaughtered. Grains
showed wide gains in price, and
greater public participation in the
commodity exchanges was evident
than for many years. AS Secretary
Wallace pointed out, however, the
drought proved blessing in disguise
for the grain and live stock farmers.
reducing the enormous surpluses in
one bold stroke.
Mr.. Wallace would like to see the
$50. 600, ,0OO- -bushel carryover of wheat
stepped up to 200 100000 bushels
next year, also corn surplus OF nearly
1000 ,000, 900 bushels to avoid recur-
renee of the feed shortage OF this
Winter. But live stock supplies are
not so flexible; it will take years to
build herds back to meet the demand.
The poultry and egg industry standing
somewhere in between the grains and
meat industry in f1exibility, has proved
itself capable of working from over
supply to scarcity in three years. AT
present the statistical position OF these
branches is favorable to slightly larger
incomes in 1885.
Fruits and vegetables were not
greatly hit by the drought, although
some fruit trees were damaged IN
the previous Winter. A large de-
mand for canned goods has been re-
ported and Gamers are at present
preparing for higher levels Of activity
in 1885.
Greatest Problem Is Cotton.
The cotton situation is the big
fv in the ointment. Least important
of the group in total income, the
cotton farmers prosperity means a
gerat deal to the South. In spite
of the drastic reduction in cotton
crops in 1884, it appears at present
that the 26.000, ,000-bale surplus which
has been hanging heavily over pres
ent prices will not be materially cut
down. With 9,500,000 bales pro-
duced in 1894, compared with 49,
600, 900 bales in 1888, foreign and
domestic markets have shown re-
luctance to absorb supplies at Com
modify Credit Corp. supported prices.
Cotton Is our most important export,
normal foreign demand approx
mating 100000 bales yearly. But,
since we refuse to lower our standard
of living by selling at world prices,
we must accept reduction in. our
export business. There are large
areas in India and Brazil which could
be developed to produce cotton greatly
in excess of present production. In
fact, both countries have already
made inroads on our markets.
Forecasted production for 1885,
with the cotton crop control plan
in effect, is 100000 bales; with
the help of the Bankhead act the
crop might be cut to 12,000,O00 The
most important problem we face at
the present time is to determine at
what price level the gross income to
cotton farmers is largest, and to be
content with that price. For instance,
If we could dispose Of the entire
$4,000 000-bale crop at 10 cents per
pound, the total income would be
larger than that from 100000 bales
at II cents per pound; so much
larger that the net income after
production costs would be breater,
and the South would maintain its
position as the preferred area for
cotton growing. Chart III shows the
decline of consumption of American
cotton here and abroad.
Production relinquished to foreign
nations does not come back readily.
Once the facilities for growing are
created, production will be continued
at a loss for a considerable period
before the land will be retired. There
fore it is in the interests of American
agriculture to hold foreign markets
for cotton as long as it can be sold
at a profit. In his annual report,
Secretary Wallace recognized this
fact, but at the same time declared