The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-03-25
WREcKING THE COTTON BUSINESS

IN q lam, in spite of the fact that the eouii-
trv has been passing through pefioo o'
restricted buying of cotton goods "ii'h
should have worked up big demand lot
the products of the mills by this time.
The trouble with the textile business
seems to be that the cotton processing TAX
and other mounting costs in the COTTON
manufacturing industry have booster IT,
tail prices to points which have had the
effect of greatly decreasing the volume OF
business. This condition has been favor
able TO the expansion of markets for cot
ton substitutes and the manufacturers are
called upon to face that menace, also.
While the federal governments cotton
nolicv is rapidly destroying the export
business of this country the same policy at
home is destroying the domestic market for
cotton by decreasing the use OF cotton
products. The Wall Street Journal points
ont some of the difficulties and problems
confronting the textile industry, and these,
of course, are linked with the problems OF
the cotton growers; and the present out
look is that the SOuth's greatest business
the growing and manufacturing OF cotton,
will ultimately be wrecked by government
interference and political efforts to control
economic and commercial laws which are
not subject to political mandate.
The Wall Street Journal sums up condl-
tons in these paragraphs, which are inter-
esting, as presenting the viewpoint OF Il
financial and business newspapers
Complaints of cotton mill operators are so IN
creasing in volume that Senator Smith OF ooueh
Carolina has moved to consider means OF prevent
ing the threatened shutdown of some OF the MILLS
Among the grounds of complaint are the IMPOSE
ton of the processing tax, increasing competition
of Japanese goods in the domestic market ana
higher production costs due to the MIA pohcles
Superimpose these upon the AAA policy that has
increased the cost of domestic cotton for the bene
fit of the producers and it is to be seen that the
mill problem bristles with difficulties.
Japanese production costs are far below ours
Increased tariff duties, quotas and other restric-
tions have been suggested, but such remedies might
have troublesome effects. It is becoming increas-
ingly clear that in order to export our surplus
manufactured and agricultural goods, including
COTTON, we huSI "Oih W Otedh uOWl the barriers
that foreign countries have erected against one
another and against Raising our own tariffs or
fixing quota would handicap us in the work OF
removing those barriers to trade
obviously one of the necessary aids to recovery
is increased production that will result in more
employment of labor. An industry will not extend
its operations if the costs greater than the re-
turns. Yet the NRA code has increased cost of
production of cotton goods and in addition a tax
of AZ cents pound has been laid upon the raw
cotton and then the industry is supposed to COM
pete in the domestic market with an active pro-
Queer that pays labor about one-tenth what we pay
$50 we raise wages in order to help labor, then
tax the raw material which it works in order to
compensate the producers and then find that the
mills cannot function and labor is dismissed Then
We buy the cotton goods from a competitor and
tax ourselves to pay for work relief for the un-
employed. The vicious circle would look funny if
it were not so serious.
Cotton planters will naturally dislike the suc-
geston that the processing tax be removed if that
means an end to compensation for curtailing acre
age. But they will sooner or later have to face
the fact that processing taxes and cotton loans are
diminishing the market for their product, not only
abroad but now at home. They must ask them
selves whether the wit of man can devise any real
substitute for consumers of yearly CROP
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