Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-08-20

IN years, cOtton-raising boom was
on overseas. We disregarded the fact
that the price of Texas cotton is not
dictated by the size of the American
crop nor the demand of New England
mills.
No Economic Boundaries.
Cotton is an international commod-
ity. It's price depends on the size of
Brazilian, Egyptian and American
| crops and the demand of the Man
chester Osaka, Milan and Fall River
mills. Our AAA program, like every
natlonalistic policy was basically I'M
sound because it forgot that economi-
cally all countries are one The Unit
ed States cannot control world cotton
wheat, or gold prices any more than
Georgia, Kansas or Nevada can con-
troll the United States price of these
| commodities. National boundaries
mean no more to economic laws than
state boundaries. Now with OR excel
lent 1887 crop, about 40 per ccr.t of
which must be sold abroad, we find
the way to our old markets blocked
1y foreign cotton.
The inevitable result is a lower
world price for the new crop. This out
come, however was not unexpected.
Other countries had tried similar
schemes and failed. Britain and rub
Der, Cuba and sugar, Brazil and COT
fee were all good examples of the fu-
tility of crop control. Nature would
nave wiped out the cotton surplus in
her own way. Actually it took the
drought to clean up the job in the
end. The South's agricultural problem
is basically deeper than too much cot
ton. It is lack Of proper diverfication
of crops. Cotton has been over-em-
phasized at the expense of other pro-
ducts. The South realizes this and
couraging diversification. But at the
moment all eyes are focused on
EKing Cotton"
Record World Crop.
Cotton consumption seems to fol-
low two-year cycle. The 1936-37 sea-
son was a record year for cotton use
So unless business is tremendously
good it looks like the next twelve
months will be the ''off" season. If
that's the case, cotton will be in a
weaker position statistically, and with
out interference the price might go
still lower Actually the best thing
for the South is to let the price seek
it's own letyeI. However, something
apparently had to be done politically
to help the planter" An outright sub
sidy rather than ''pegged" price is
preferable. The American price should
be allowed to work along with the
world price. Lower quotations will
help consumption and they are the
only means by which we can gain
back our lost export markets
The government reckons this years
American crop at 15,59O,OOO bales
an increase of 100000 bales over the
1886 figure. 1t also predicts jump
of 100000 bales to a record total of
19,5O1OO0 in foreign growtbs. This
means a world crop OF 35,OOO,OOO
bales! Americas output will repre-
sent A per cent of the world crop a
gainst SO per cent in 1881, while
Brazil, for instance, will produce five
per cent as compared with two per
cent, six years ago! Despite u 6 two |
year CYCLE" better consumption Will
do it's share in cleaning up the 1887
38 crop. The Improvement IN world |
demand last year was 100000 bales |
In all 31,00O000 bales were consum-
ed. With business heading toward |
prosperity another substantial gain in |
cotton use is possible.
Boon To Crop Handlers.
Even if the current drop in price |
of cotton continues, it will not hurt |
us in the long run. 1t will help to
prevent excessive paintings next year,
which high prices for this seasons
cotton would inevitably have brought /
on. Good crops at medium prices pro-