Evening star., 1939-02-19
South Held Menuced
By Cotton Surplus
Bu OUen L. Scott

right in the middle of today's very fast
and very practical game of world politics.
Like Hitler's Germany, the South must
either export or see its major industry
die. That industry-cotton growing
supports one-third Of the farm popula-
ton of America. More than any other
industry, the cotton industry depends
upon foreign markets for an existence.
Yet vitally needed markets for American
cotton are disappearing. Sales in jan
uary were not even half as large as in
January, 1888, when they were far below
normal.
Instead of moving into use, vast guam
titles OF cotton are moving into the
hands Of unsuspecting American taxpay-
ers who today are carrying what amounts
to nearly an entire years crop. Taxpay-
ers are due to get lot more of this cot
ton. which one day will cost them q
pretty penny in hard cash.
At this point, world politics and world
economics enter the picture.
There are countries in the world that
badly need and badly want American
cotton. Among these countries are Ger
many and Italy and Japan.
But Germany and Italy and Japan find
themselves short Of cash with which to
buy cotton from this country in the
quantities needed They already have
shipped nearly all of the gold they pos
sessed. Tariff barriers and boycott bar
riers stand in the way Of sales Of their
pnodc in nI,o ptitiac 1oroo opo,oL, N m, =
able them to acquire the dollars they
need to buy cotton. These very barriers
help to account for the emergence of
dictators and their totalitarian methods.
The result is another example, only on
worldwide scale Of the strange display
OF want in the midst OF staggering
overabundance.
OF late, Southerners have taken to
looking at their cotton, piled high and
unused, while looking at the possible
markets abroad, gaping untitled. This
idea has occurred: II Brazil and Mexico
and other nations can barter cotton and
oil and other products for the goods of
nations that need cotton and oil, why
cannot the Southern farmers do the
same? And: If the United States Gov
ernment can finance the cost of dumping
wheat in foreign markets at great saw
ing to foreigners. why cannot the same
Government pay the bill for dumping
cotton?
These questions, and others like them,
are understood very recently to have been
put by Southern Senators to Cordell
Hull, Secretary of State.
Here foreign policy took over.
Mr.. Hull stood firmly against barter
and firmly against dumping. He IS
reported to have urged upon the Sena-
tors that they do nothing at this juno
ture that would lend aid and comfort to
the dictatorship nations Those nations
were pictured as in an increasingly crit
buy vitally needed raw materials, such as
cotton. A little more pressure might
cause either a shift in policy that would
enable return to world sanity or might
bring internal upsets.
Mr.. Hull is pictured as convinced that
the use Of trade weapons can force upon
the totalitarian nations change in their
policies and a retreat that would permit
an adjustment of world trade relation
ships without resort to war.
The catch. so far as the United States
is concerned, appears to be that while
this country is doing what 1t can-short
OF economic sanctions-to make the 60
ing rough for Germany and Japan, other
nations are not following suit Brazil is
trading her cotton crop for German ma
chinery. Mexico is getting set to trade
cotton as we'll as oil for German and
japanese products. And the United
States is considering an extension of
credits to Brazil that might enable that
country to increase production of those
commodities needed by Germany.
Apparently, however. the official hope
Is that any arrangement that will enable
South American nations to buy in the
markets Of this country will also relieve
them of dependence upon Germany and
Japan and Italy. But Brazil must sell
her cotton and Argentina must sell her
wheat and meat, regardless of any Amer
ican credits.
Thus, cotton today stands, along with
industrial unemployment. as the most
challenging national problem. The New
Deal, like the preceding Hoover admins
tration, is stumped in its attempt to find
solution Of that problem. Yet lack of a
solution promises to undermine the econ
omy not only Of the South, but of other
regions as well.
The facts appear to be these:
Ten million people in the American
South are dependent upon cotton grow
ing for livelihood. If those people are
to be supported by income from the sale
Of cotton, then at least 100000 bales of
cotton must be sold abroad each year at
q price above II cents pound. This
year the prospects are that not 1000, 900
bales will be sold abroad at q price of 8
cents pound.
Germany and Italy and Japan, once
heavy buyers of American cotton, are
turning to cotton from Brazil and else
where and to substitutes for cotton
England, also once heavy user OF Amer
ican cotton, Is losing her markets for COT
ton goods and consequently no longer is
so heavy buyer. India and Russia and
China are increasing their use Of cotton
but grow their own product, and even
export.
The result is that the American South