The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-12-20
UNCLE sAM-CoTToN MERCHANT


Southern cotton growers voted for con-
tinuation of federal government control OF
production and marketing OF the staple,
which fact invites attention anew to the
status of cotton production and marketing
since the control program was introduced.
The government now holds more than
ten million bales of cotton, which has been
unloaded on the government through the
subsidy arrangement by which cotton
growers agree to reduce acreage and the
government pays them for so doing and
makes loans on the staple, with the result
that Uncle Sam has been forced to become
the owner of the aforesaid ten million
bales of cotton.
Under the reign of the old Federal Farm
Board, from 1880 to 1882, the government
became owner of 100000 bales of cotton.
Under the AAA system the governments
cotton holdings have increased, as stated
to more than ten million bales. Ten million
bales is approximately years supply OF
cotton for domestic consumption. The value
of government owned cotton is more than
half billion dollars.
The United States News makes the state
ment that AAA officials and other govern
ment controllers are baffled in the search
for a way out of the cotton impaSSe. But
as the cotton growers on December 10
voted for a continuance of the subsidy,
American tax payers will continue for an
other year to pay the cotton farmers not
to produce and will go right on buying
their cotton and piling it up to further de-
press the market.
The old Farm Board sought to peg the
price of cotton, first at 16 cents and then
at 1919 cents, and by its maneuvers &C
CURED for the government ownership of
3,400,000 bales. The AAA sought to peg
the price of cotton at 10 cents, then at II
cents, and now at 8 cents. Cotton prices
eontinue'weak and wobbly, with an always
present threat to drop lower, and the gov
eminent makes loans and buys cotton.
Prior to the last eight or ten years, cot
ton was the chief commodity exported by
this country to other nations of the world
The South sold hundreds of millions of
dollars worth of cotton to the world-ex-
ports in those years amounting to fifty per
cent. or more of the entire crop. Under the
plan OF government control the export mar
ket for American cotton has rapidly de-
clined. $685.. ...
World consumption of cotton has great
ly increased during this period, but world
consumption of American cotton has de-
ehned. The cotton growing nations of the
world have increased their production and
sales, to the destruction of the South's
world market. see,
The former paintings of 40 million acres
in cotton has been reduced to 27 million
acres, but the position of the growers is
not improved. The surplus goes right along
piiing up, prices so down, and American
tax payers put up the cash to finance an
utterly absurd plan to solve the problem
OF course, as long as the tax payers can
lind the money, and will permit the politi
clans to scatter it that way, the govern.
ment can go on paying the cotton growers
to refrain from producing and also the
government can continue to buy cotton TO,
Uncle Sam. .--S
As to finding a sensible, practical, work
able way out of the mess into which the
controllers have plunged the cotton grow
ers, that is as far from realization today a:
1t was ten years ago and the producers are
IN the worst predicament cotton grower:
have ever known. No one knows how many