The Durant news. (Durant, Miss.) 1882-1985, 1939-02-02
Government Asked To
Increase Subsidy
For Pority Income


in mass meeting in Lexington
Thursday Joined the Delta Council
in urging continuation of the present
AAA program with the amendments
recommended by the recent cotton
at Washington, January
ST.
The principal amendment advocated
by the producers was increase o,
the government subsidy to guarantee
the cotton grower parity income with
that of the industrial employee who
is protected by the tariff.
If the cotton producers are to con-
tinue paying better than a third
more for manufactured articles which
they must purchase, as a result OF
the protective tariff administered by
the government, then they must be
assured the necessary income to pay
this extra premium, Howard StovalJ
explained, in his address to the gath
ering. Stovall, represented the Delta
Council. as vice chairman of the
Federal Program and Foreign Trade
Section of the Committee on Agri-
culture. AS an envoy from the Coun-
Gil he presented the organization s
recommendations for amendments to
the AAA program in Washington be-
fore the Department of Agriculture
and the cotton conference meeting
there at the same time.
The Councils recommendations were
unanimously adopted by the cotton
conference comprised of representa-
tives from every cotton growing
state, Mr.. Stovall stated.
The meeting today was called foI
the purpose of acquainting the pro.
ducers of Holmes county with the
recommendations of the cotton con-
ference and for getting an express
sion from the farmers here on these
amendments.
In discussing the present cotton
dilemma, the speaker blamed competi.
tive fibers and the loss of our ex-
port markets.
Rayon has jumped in production
from the equivalent Of 10000 bales OF
cotton ten years ago to the equiva-
lent of APPS, 900 bales today. Ger
many is the largest producer of ra-
yon, with Japan second and the
United States third. This substitution
of rayon for cotton partially explains
the loss of our markets in Germany
and Japan and the decrease of oul
domestic consumption Of cotton, he
pointed out
Analysing the reasons for the loss
of our export markets, Mr.. Stovall
censured three factors; namely, the
changed position of the United States
from a debtor to a creditor nation
resulting in the loss of dollar ex-
change by the United States; the u
IS. protective tariff policy which pre-
vents an exchange of goods, except
at almost prohibitable sacrifice; and
the cotton loan.
Decrying the harmful effects of the
loan, he cited that this policy haG
pegged the price of American cottor
above the world market price with
the result that cotton produced in
the United States, instead of moving
naturally into the channels of trade
had piled up in the hands of the
government. This artificial price ha:
H'orced the cotton off the market anc
made it necessary for foreign buyers
to purchase cotton elsewhere.
To substantiate this statement he
land had dropped rs per cent over
last year. while exports to France
Italy and Germany has also dropped
another As per cent during the veal
of the loan. AS world Consumption
is increasing, these countries pur.
chased cotton from Brazil, Uganda
Peru and China.
IF we continue to use the loar
policy and thereby pile up more anc
more cotton in the hands of the gov
! eminent. cotton production in thu
| South will soon be as dead as tn,
| dodo," Stovall emphasized.
| He explained further, however, tina
if the cotton producer is guaranteed
parity income from his products, m
will no longer be forced to rely oil
/ the loan. Therefore, if the plen re
commended by the Delta Council an
the cotton conference is adopted. tn
loan will become inactive.
in further justification for the
/ parity income plan, he assured tn
planters that this method is THE onl
recourse open to the United Safe
in the present dilema. The cotto
J producer, who is one Of the larges
exnnrter grnnnA and the largest farm