Evening star., 1940-03-25
British Buying Cut
Raises 5pecter Of
Big Cotton Surplus
100000 BoIes Of 1910
Crop May Have to Be
Kept OFF Market

Agriculture Department authori-
ties today forecast difficulties in dis
posing of the 1910 cotton crop abroad,
and predicted the Government again
would be asked to advance large
sums to growers in the form of loans
on unmarketable surpluses, after re-
ceiving advices from British trade
authorities that the United King
dom proposes to curtail purchases of
American cotton in a further move
to conserve foreign exchange.
One department authority said 1t
was likely that 100000 bales or
more of 1910 cotton would have to
be kept of the market by Govern
ment loans, the estimate being based
or a 10000 0O0-bale crop.
Britain Biggest Buyer.
The United Kingdom has been by
far the largest recent importer of
American cotton. It took 1926, 900
bales during the seven months ended
March l. compared with only 800 900
bales in the same period a year pre-
viouSly.
Increased imports in the last few
months by France. Italy, Japan and
severa! other countries as we'll as
by the British have put American
cotton exports at the highest level
In several years. The total for the
marketing season ending July 81 is
expected to be in excess of 5000 900
bales, compared with 1925 900 last
| season.
| Officials said that Great Britain.
while intending to reduce purchases
here, was preparing to buy more
cotton in South America than here
tofore. BY so doing, it hopes to win
a big share of export markets for
industrial goods formerly supplied
by Germany, and to make the most
Of its shipping facilities.
Ships Come Here Empty.
1t was explained that British ships
which transport cotton from the
United States frequently come here
empty. BY turning to South Amer
lea for their cotton the British see
a chance of sending out ships laden
with goods which can be sold to
pay for the cotton.
The Commerce Department, how
ever. reported bright spot in the
United States-United Kingdom trade
picture.
England in 1889, the department
said, was an outstanding market
for American chemical. taking
products valued at s22 900 900 during
the year, compared with s15.0OOO0O
in 1888 and S155OO.0OO in 1887.
Approximately IS per cent of our
total exports of chemicals and
related lines in 1899 to the United
Kingdom consisted of synthetic
plastic materials, including synthetic
| gums and resins.
Inventory on Loan Business.
Uncle Sam will take stock this
week to determine whether he has
made or lost any money during the
last year on a billion dollars worth
of crops he owns and loans he
has made to farmers on farm sur
pluses.
An inventory taken a year ago
showed a deficit of $4,000. 900, due
largely to a shrinkage in values and
storage costs
Involved in the stock taking will
be loans made by the Commodity
Credit Corp. under the "ever-nor-
NAL granary'' phase of the A. A. A.
CROP control program. The corpor-
alton is authorized to make loans
to growers on surpluses which, if
sold, would tend to depress prices.
Farm officials estimated that on
the basis of current prices, the cor
poration would show a surplus Of
upwards of $75,0OG,000 as of March
81, represented by increased values
of cotton and corn owned outright
by the corporation as result of
foreclosures on past-due loans.