The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1939-04-20
WASHINGTON, Apr. 20 (Au-

ton. 1t is also point upon. winch
"a sharp controversy is raging be-
tween the Administration and the
Senators and Representative:
from the cotton-growing states.
The problem is how to move
to market the 11,500,000 bales OF
cotton which have been held Over
from previous years, carried II
warehouses by the aid of govern
ment loans of a little ever eigh'
cents a pound. Cotton export:
have declined from former ave
rage of seven million bales
year to under four million.
The cotton planters of the
South produce an average Of
twelve billion bales. Foreign and
domestic markets combined will
not take more than ten billion
bales at a price that will enable
cotton owners to pay off the gov
eminent loans against the stock
in storage.
The Secretary of Agriculture
and the President have proposed
to pay owners of stored cotton
a bonus in cash to release their
cotton for export at 61a cents a
pund, at which price it is figured
that an additional market will be
found for two million bales. That
amount would about balance the
annual surplus.
The plan would cost the Gov
eminent from sixty to ninety
million dollars a year. A part OF
it is the proposal to increase du-
ties on cotton manufactured
goods, to keep products made
from American cotton from COM
ing in to compete with American
textile manufacturers, and to pay
our manufacturer a subsidy on
goods exported to compete IN tor
eign markets.
Proposed SOLUTIONS.
The Smith-Bankhead bill,
which has passed the Senate, pro-
poses to solve the cotton PROP
lem by letting farmers buy back
the cotton on which they have re-
ceived eight cent loans, for three
cents a Mound. on condition that
the growers reduce production
this wear to compensate for the
cotton they buy; and that instead
of price-stabilizing leans growers
of this years crop be given sub
sidy of three cents a pound on all
they grow.
The estimated cost Of this plan
would be sos millions loss to
the Government on cotton loans
already made, and $3.50 millions
on this years crop by way OF
subsidy.
Another farm crop whose grow
ers are beginning to Cemano
more protection from Govern
ment, is sugar. Here the problem
is not one Of enlarging our ex'
Dor market, but of keeping for
eien markets out of the domestic
market.
The sugar situation is a compll
Gated one. Under the Sugar Ac
of 1887. the Secretary of Agrlcul
ture annually estimates the to-
tai domestic consumption of SUI
gar for the preceding year. The
law now provides that only fiji
ty-five and a fraction percent o
the nations sugar needs may b'
grown in the United States, abou
As percent being allotted to for
eign countries, chiefly Cuba ant
the Philippines.
Can Ship 100000 Tons
Under the Philippine 1ndepen
dence Act that country is EMIT
led, for several years, to shll
100000 tons of raw sugar ant
$4,000 tons of refined sugar t.
this country free of all duty.
Under the reciprocal trade trea
ty with Cuba negotiated by tn
State Department, Cuba has t
pay only nine-tenths of cent
pound on sugar it ships to tn
United States, ann is allowed t
send into this market roughl
two million tons a year.
Definite limits of the tonnag
of sugar which other nations ma
send to the United States are fix
ed by percentage of the total es
timated consumption. All coun
tries except Cuba and the Phil
lippines have to pay $1.87 cents
hundred pounds duty.
Hawaii, Puerto Rico, and tn
Virgin Islands, all important su
gar producing countries, being
part of the United States, pay n
duty on their sugar shipped here
Part of the sugar control plal
is the payment of subsidies I'm
der the Soil Conservation Act, t
ra1uard sugar planters for keep