The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-10-27
MANUFACTURERS OPPOSED TO COT
TON PROCESSING TAX

w
American Cotton Manufacturers Assocla-
ton has addressed letter to Secretary
Wallace of the U. S. Department of Agrl-
culture, informing the Secretary that at q
meeting of the Association lately held III
Greenville, S. c., resolution was ADOPT
ed which holds that the cotton processing
tax is an excessive sales tax on cotton
goods and is retarding the recovery of the
textile industry. The Association opposes
the levying of the processing tax and takes
the position that if the cotton growers
must have financial relief, the necessary
funds should be appropriated from the
United States treasury.
President Ahderson's letter to Secretary
Wallace contains these paragraphs:
"The textile industry is sympathetic with the
condition of the farmer. In truth the interest of
the farmer and the interest of the professor of
farm products is practically Identical The cotton
farmer and all of that great body of citizens who
are Immediately concerned with his operations, in
the harvesting ginning, transportation, and distri
button of his product the largest and best Gus
toners for the products of our manufacturers. We
therefore, offer no objection to the payment to the
farmer of any benefits or bounties necessary to
bring his condition to the level of other classes of
citizens and other types of business.
eve contend, however, that the levy of an ex-
cessive sales tax on the manufactured products Of
the cotton farmer is not the equitable manner in
which the money to pay these benefits should be
raised. To follow such policy establishes too
great a sales resistance to the movement of his
products into general consumption and imposes an
unjust and nequitable burden on the farmer him.
SELF the professor Of his products, and reduces
the earnings and income of that vast multitude of
people whose living comes from harvesting GIN
ming, transporting, manufacturing, finishing, whole
sailing, and purveyng these products across the re-
tail counter to the ultimate consumer
Granting that benefits should be paid the farm
er, the more equitable plan would be to distribute
the cost of these benefits upon all classes of bust
and all classes of citizens by paying the same
out of the treasury.
The cotton textile industry is bleeding internal
ly today and its most dangerous wound has result
ed from the blow dealt 1t by the imposition of the
processing tax
President Anderson's argument is unan-
swerable. Today the price of cotton, in
spite of abnormally short production, and
all the governments efforts to maintain
the price by artificial means, is hanging
around the figures fixed by the govern
ment's 'pegging" of the price at twelve
cents by loaning at that rate on stored
cotton. Through combination of process
ing tax, shorter hours and higher wages
An the textile industry, costs of manafac-|
turing have advanced so that the high
prices OF cotton textile products are slow
ing down sales, This condition has existed
IN the cotton trade for several months. and
the manufacturers know that it is going
10 continue, perhaps becoming more acute,
unless the industry is relieved of some. OF
the burdens which are causing it to bleed
internally. .... -
If the prices of cotton textile products
can be stabilized at levels which will stir-
ulate instead of stagnate trade in the ir-
dustry, sales will increase, consumption Of
the raw material will increase, and the cot
ton growers and all classes engaged in the
handling and manufacturing of cotton will
profit. -.
There is no hope for the future in the
cotton manufacturing industry in a policy