Evening star., 1935-04-21
BY OWEN L. SCOTT.

IL II ~cTc LlOt 1OI IIlc IdllleI uIlIO-
mantle subject Of cotton. the New
Deal right now would rest more easily.
Strange as 1t may seem, that product
and its troubles, more than anything
else. plague President Roosevelt in
his attempt to plan a way out OF the
depression.
Cotton is becoming a symbol OF the
difficulties that grow from Goveu1-
n1ent efforts to help selected groups
in the population. 1t also is becoming
a central point of attack for economic
and political interests striving to
crack up the New Deal AS result,
decisions made during the forthcom-
ing struggle over cotton policy are
likely to determine the direction of
presidential planning from now on
Mr.. Roosevelt's recovery scheme,
plans of Henry Wallace for a better
ordered agriculture, the relief prob
lens Of Harry Hopkins, foreign trade
ideas of Cordell Hull. Secretary Of
State; sectional differences between
the North and the South. NJ r. A.
troubles, and the whole policy of re-
covery by restriction head up in
cotton.
This Southern staple probably
represented the sickest section of the
Nations industry when President
Roosevelt took office in March. 1888.
Prices had fallen to cents a pound.
when even the lowest cost farmers
hardly could profit at 10 cents.
There was a whole years supply of
cotton on hand, with big new crop
about to be planted. The South was
on the verge Of disaster.
Then came the Agricultural Adjust
ment Administration with its plan-
ming. To head of the prospect of a
huge new crop, the Government paid
farmers about 100000, 900 to pillow ,'p
100000 acres of cotton that already
had started to grow. In order to get
the money to make this payment, q
processing tax" was levied on cotton
at the time the bale was broken for
use
Prices shot higher for a time during
1898. Then they broke lower. To
meet that situation, Mr.. Roosevelt
started to cut down the amount OF
gold in a dollar. This again helped
cotton. because a cheaper dollar was
more readily obtained by foreign buy
ers who normally take so per cent OF
the crop. Everybody seemed happy.
The South began to bloom as the
brightest spot on business condition
maps. Apparently there had been
found q magic recipe for prosperity.
But once again prices Of cotton
broke. This time Southern Senators
blew OF steam and trooped to the
White House. They came out with
new-fangled type Of loan to be
granted by the Government to cot
ton growers. With this loan in effect
growers were guaranteed a return OF
10 cents q pound. Again it looked
As If the South would be satisfied and
cotton troubles would be over.
That illusion was short-lived. This
time, with bounties being paid, loans
being made and money being cheap
ened, cotton growers suddenly awak-
ened to the fact that cotton growing
had become an attractive occupation.
They saw the Southwest, with cheap
land, getting ready to turn to cotton
on an expanding scale.
So the South in 1884 brought out
what is known now as the Bankhead
act. With the backing of the Presi-
dent, this act became law In the face
Of opposition from Henry wallace,
Secretary of Agriculture. The idea
was to establish a vested right in cot
ton growing. New planters would be
discouraged by q tax forcing them
to pay so per cent of the value OF
their cotton before they could market
it. Old planters would be checked
from expanding by set limit on the
amount they could market free Of
tax.
What has happened? Are cotton
problems solved and is the future
bright for that industry?
Hardly, judging by present clamor
from the North and the South alike.
Instead of easing the difficulties and
clearing the picture, the conscientious
efforts of the New Deal to help the
cotton farmers have resulted in new
difficulties, both economic and po-
litical.
First, attention began to be di-
rected about a year ago to the fact
that while there were many signs Of
prosperity in the South, there also
were rapidly increasing relief rolls.
Land owners had signed contracts
with the Government to cut down
their planting by 40 per cent. With
fewer acres to cultivate. they needed
less help. Cotton tenants and share
troopers" began to crowd the relief
rolls. Estimates are that about 250, 900
Of these farm families now are on
relief in cotton States.
A few months after the relief prob
lem arose, officials began to note that
buvers abroad, who usually buy more
American cotton than do American
buyers, were not taking as much as
usual Instead, they were buying
more cotton from India and China and
Egypt and Brazil, which offered lower
prices They have continued to buy