Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1940-07-12
The Best Way Out

4
| oacco crop. but. in the light Of con-
| ditions ever which none OF us has
| any control, it seems 10 be the bcsI
/ way out Of 4 distressing situation.
! The ultimatum OF Federal authorl-
| ties is longtime reStrictlonS-or else
Meaning that there will be no price
| pegging by the AAA without CO.
operation OF the growers. One news
! paper headlined its report on one OF
| the rallies as control or starvation.
| II that is true-and it is something
like or very close to that-nOt even
one guess is required to determine
what will be the result Of the July
20 referendum. The overwhelming
| odds are that it will carry for the
three-year proposal by about tho
same margin aS 1910 control was APP
proved last fall, which was some
thing like ninety percent
Government spokesman, business
men and leaders OF the farmers are
rather positive in their opinion and
their advice to growers that three
wear control means price next fall
equal 10 or better than the fraction
under fifteen cents a pound average
paid for the 1889 crop, the result OF
the favorable referendum on l9+O
paintings.
Many tobacco producers will tell
you that little if any money can be
made on tobacco at less than twenty
cents pound. That would mean
that fifteen cents in 1910 will be one
fourth below the approximate cost
figure. Which does not guarantee
hilarious prosperity for either the
growers or the communities 50
largely dependent upon their good
fortune to stay in the black them
selves.
Every one, of course. knows that
the war is the reason for the current
slump in tobacco prices. 1t could
not be otherwise with most OF the
export trade shut Off. Certainly
there is no indication at this time
that foreign buyers will be factor
in disposing OF this years yield, en-
cept as the government buys the por-
ton of the crop they usually take,
as it did last fall to prevent collapse
OF the market.
It is equally as true. too, that the
government cannot continue lndeiI-
nitely to lift the surplus turned back
from Europe and the Far East with
out creating q condition in the next
few years that might become as
serious as the surplus that would
ensue under a plan of free produc-
ton. The hope is that the foreign
situation within a reasonable time
will change for the better and that
the accumulated excess will be re-
moved by market that IS being
starved during these crucial years
of war Even that involves con-
! siderable element of doubt, but there
again is the stone wall to be faced
where the industry is helpless to dis
cover any other way out.
Like it or not, three-year control
is the only promising alternative
1t is the only course that offers even
lucent average for this year S
crop. Those who are advising the
farmers about what they should do
in the continuing emergency say
there would be little difference in
prices as between the other two pro-
| positions, namely, no control at all
and control for just one year.
For our own part, we do not now
and never have relished the idea OF
crop control, which is form oil
! agricultural RECOMMENDATION, the same
as the wage and hour law is reSi-
/ mentation of industry. Frankly
however. if we were Il tobacco grow
CT. we would vote Tor threc-ycal
control as the best way out OF 4 bao
situation, and our suggestion to the
farmers, whatever it may or may
not be worth, is to accept that al
| tentative.
BY l943 the situation may ano
probably will be vastly different If
one direction or another from Wha,
it now is. In these perilous times
| forecasts Of the future are little
more than mere gueSses, and poor
| ones at that. Our actions can be
guided only by conditions as they
| exist at the moment.
Maybe the reason they call this
! total war is because when it's oVel
| winner and loser must total up the