Evening star., 1934-12-30
Foreign Events Affect
L. S. Cotton Market
BY HARDEN COLFAX.

The farmers emphatic Endorsement
Of Federal control Of the cotton crop,
the hitch in our proposed barter with
Germany, and the sharp decline in
foreign shipments of Americas No.
export commodity have directed at
tention to the effect of recent events
on our sales abroad Of raw and manu-
factured cotton.
The proposed barter with Germany,
which is still hanging fire, has bee1i
one of the pet projects Of the export
import banks. They are seeking to
arrange deal whereby the German
government will relieve American
farmers of 100000 bales of cotton.
The transaction, however, will be
barter pure and simple, because Ger
many, which possesses practically no
cash, would pay only rs per cent in
money and the remaining rs per cent
in scrip" which could be used only
for the purchase Of goods in Germany.
The higher price for American cot
ton in comparison with competitive
cotton grown abroad seems to be the
chief reason impelling world buyers
to turn, to an increasing extent. to
other growths for their supply. al
though in the cases of Germany and
Italy shortage Of dollar exchange is
probably the real reason.
Il y
During the first nine months OF
1884 there was sharp decline in our
exports Of manufactured cotton
We have been sending abroad, in nor
NAL years, more than so per cent OF
our production of this commodity ano
have not regarded seriously the COM
petition from India and Egypt, our
chief rivals. Other countries with IA
vorable climatic and soil conditions
have been gradually developing cotton
production, using their own crops to
satisfy their home needs, and reports
from foreign agents of the Depart
ments of Agriculture and Commerce
tell of intense interest in such cultiva-
ton, with varying success in Brazil,
Manchoukuo, Turkey, Russia and
other countries.
While Egypt's cotton industry has
been well established for years, recent
reports from our consuls in that coun-
try indicate that any substantial and
permanent expansion of cotton acre
age in Egypt depends on a rather ex-
pensive irrigation project which, it is
estimated, would take at least 20 years
to complete.
Current reports from Government
agents at Rio de Janeiro say an in
creased acreage may be expected in
Brazil this year. Cotton Is grown in
Northern Brazil as well as in the
State of Sac Paulo. Enormous guam
titles could be produced, but the cot
ton crop depends in way on Brazil's
coffee prospects. When the coffee
output is to be emphasized, cotton is
neglected, and vice versa, according
to the labor supply available. This
season it is estimated that approx
mately q million bales will be har-
vested.
The growth Of the domestic textile
industry in Brazil, moreover, Is in
dicated by the increasing consump-
tion of cotton, in which the home
grown product shares. Brazilian cot
ton Is said to be well suited to manu-
featuring.
The Germans have sent special
missions to Ankara to study the pos
sibilities of increasing cotton in
Turkey, while recently the Russian
Soviet government granted a loan to
the Turkish government for the pur-
pose of developing the industry Of
cotton manufactures in Turkey, as
well as supplying machinery and
technical assistance"
All sorts of agreements are being
made between cotton producing and
cotton n-consuming countries. The
japanese needs, it is believed, will be
filled not only from this country but
from India and Brazil. Italian fac
tories are also buying an increasing
quantity from Brazil. Other countries
are attempting to cultivate cotton
on commercially profitable scale.
Greece has had some small measure
Of success; Spain, in Catalonia, is
developing the idea, and Italy has
begun to plant in her African colony
OF Somaliland. One recent develop
ment is in the Congo colony of Bel
gium. The home country uses good
deal OF this cotton and it is reported
Tor their raw material.
Germany Is reported to have made
barter arrangements with Egypt, CIV
ing nitrates for cotton, and to be