Evening star., 1935-03-11
us. SEEKS REMEDY.
FOR EXPORTS LOSS.
Removal of Tariff Barriers
Seen Only Way to Re-
capture Trade.
BY DAVID LAWRENCE.

official figures.
Egypt, India and Brazil are taking
Our textile business from us as the
American cotton planter, temporarily
soothed with artificially boosted prices
due to governmental measures, is
threatened with a greater and greater
loss Of his markets in the long range
sense.
For not only is the cotton farmer
endangered. but American labor in
the textile industry is imperiled.
The Bureau of Agricultural Eco
nomics, which is a statistical and
fsct-finding agency in the Depart
ment of Agriculture, has just revealed
that while spinners in Japan bought
less cotton from America in the Sec
ond six months of 1884 than they did
In the first six months, the Japanese
increased their purchases of cotton
from India considerably in the same
period.
Cotton Trade Off.
The total Of cotton exports in jan
yuary of this year declined A per
cent in volume and q per cent in
dollar value.
This steady decline" says the bu-
rfeau, sis attributed to price factors. -
Another way Of stating it is that,
while the Government here has pegged
the price Of cotton at IL cents through
dts willingness to make cotton loans
at that figure. the world price is below
that point. Hence foreigners find it
necessary to buy cotton in Brazil or
India or Egypt, where cotton is being
grown and sold at less cost than in
America.
Striking an average of all cotton
exports. the January index was 68, as
compared with "a last December and
109 in January a year ago.
Looking at all our farm products
we find that the volume shipped
>abroad in January, 1885, was the
lowest exported by us during any
January for 20 years The index of
all farm products exported for Janu-
ary, 1885. was ST. as compared with
81 in December, 1884, and SO in
January 1884.
High Tariffs Blamed.
., So, in way cotton is no exception
to the downward trend of our exports
of farm products. for we are losing in
the sale of wheat and corn and lard
and pork and apples-in fact, all along
the line.
p The reader will ask, Why" The
Senate Committee on Agriculture has
just completed an exhaustive series of
hearings to ascertain the answer. And
it has about come to the conclusion
that the same old law and custom
(which operated for centuries past can
hot be repealed now-namely, that
foreign peoples must have purchasing
power with which to buy our goods
and that they cannot acquire such
purchasing power unless we let down
the tariff barriers somewhat and per-
NIT them to sell some goods to u.s.
This does not mean free trade OF
destruction of necessary protection OF
any extreme measure. But it does
.smean a restoration of world trade by
natural interchangeS between two
countries of things they can exchange
land Of interchanges among three and
.four countries which will build I'D. in
:. what is called a "multilateral" way,
1.-THE purchasing power of all concerned.
, Today Rrazil is increasing feverishly
her cotton production and selling to
1.-The European customers we once had.
sss:America. on the ether hand. faced
for the last five years with a huge
carry over of cotton from year TO year,
has had to find some way to cut Gown
that surplus and build the price up
ato save the cotton farmer.
- "Stop-gap" Policy.
= So what Secretary Wallace of the
Department of Agriculture calls q
sstop-gap" policy was adopted, some
lthlng to bridge over the gap between
the time when we had surplus that
depressed Our domestic price and the
time when, with the elimination of
the surplus, We can remove the re-
Strictlons on production and compete
again in world markets.
. In the meantime however, other
nations are getting our trade and the
buying nations are beginning to de-
~elop cheaper substitutes, so that
king cotton may grow less and less
valuable as world crop and Amer
lea cotton planter may find it neces-
sary to turn from cotton to something
else to help him pay the costs of his
farm and yield a profit.
Speaking of temporary expedients.
Samuel Lamport of New York, a large
textile manufacturer, has proposed to
The Senate Committee on Agriculture
an ingenious plan whereby a sum
equal to 10 per cent of the processing
taxes paid by these manufacturers
shall be appropriated by the Federal
Government to allow about a half
million bales of cotton, now held by
The Government here as collateral for
doans. to be used for special export at
a price per bale under the world price
Selling Surplus.
Mr.. Lamport insists this is not
humping but world competition, and
that the Federal Government would
not actually have to advance any cash
because it would be in effect selling
some Of its surplus cotton at q dis
count. This discount would not be
granted until the goods were manu-
factured and ready for export ship
ment, with the invoices available for
inspection. In other words, the Amer
ican cotton surplus would be reduced
faster and the American laborer in
the textile business would get more
work and the total cost would be about
$4,000. 900. equivalent to one-tenth of
fhe processing taxes already collected
Serious consideration Is being given
to the plan.
On the broad question of agricul-
tural exports, there seems to be a
unanimity of opinion among Secre-
taries Hull, Roper and Wallace that
the temporary policies now being
practiced by artificial control must
give way to different policies of a per-
nnanent nature and that these involve
removal of exchange restrictions and
quota and tariff barriers. From these
steps, it is further argued by cabinet
members will come the all-inportant