Evening star., 1941-05-11
Crop>Control Plan Is Blamed
For Loss of Cotton Markets
Frank Agriculture Report Declares Program Has
Operated to Disadvantage of y. S. Growers
and Aided Foreign Competitors
By Ovid A. Martin,

By Ovid A. Martin,
The Stars Special News Service.

A startlingly frank report issued by the
Agriculture Departments Economics Bu-
reau declares that Government crop-con-
troll programs have operated to the dis
advantage of American growers and to
the advantage of foreign growers of cot
ton in world markets.
The report is regarded with particular
significance because it was made public
at time when exports of American cot
ton, which once proudly dominated the
world fiber markets, have slumped to the
lowest point since pre-Civil War days.
This loss of foreign sales was reflected,
in turn, by the accumulation of huge
stocks of unsold cotton in crowded
Southern warehouses.
Foreign trade authorities expect no
more than 1000 900 bales of American
cotton to move abroad this season. This
volume compares with about 100000
bales exported last season and a record
of 100000 bales in 1926
The Economics Bureau report said the
control programs operated by another
Agriculture Department agencv-the
Agricultural Adjustment Administration
had helped bring about shift in con-
sumption from American to foreign cot
ton by holding prices Of the American
product above its normal rela tionship
with cotton produced in other countries.
Market Outlets Reduced.
"These developments Qoss of Ameri-
can export markets and increased con-
the fact" says the report, that, in the
absence of monopoly control of the world
supplies of cotton, restrictions on pro-
duction in the United States and price
maintenance for American cotton, with
out similar restrictions and controls for
other cottons, tend to reduce the market
outlets for American cotton at the ex-
pense of the American cotton industry
and to the advantage of cotton producers
in other countries and of producers of
other f1bers that compete with cotton"
The report added that the possibilities
of expanding cotton production in other
countries had perhaps been underesti-
mated. 1t declared that developments
had greatly weakened, if not destroyed,
any basis for confidence that expansion
of production outside the United States
offered no serious threat to the American
cotton industry. ..4>.. 80
'The importance of the availability Of
American cotton at competitive prices
in maintaining foreign outlets for Amer
ican cotton is emphasized by data on ex-
ports" the report said
1t declared that during the first six
years Of the A. A. A. rop-adiustment
programs G933-1e3S). exports of Amer
ican cotton averaged 80 per cent less
than for the 10 years of 1o23-1o32.
whereas. for the same period exports of
cotton of competitive countries increased
80 per cent.
Export Sales "Unprofitable"
Always ready to defend their programs,
A. A. A officials take issue with what
they describe as the "implcati tions' of
the economic report. They agree that
perhaps the crop programs have i'm
paired the competitive position of Amer
lean cotton in foreign markets But they
contend prices prevailing in world mar
kets during the last 10 years were "un-
profitable"
There is no point" one A. A. A. off,
cial declared, "in selling cotton, or any
other product, at prices which would
bankrupt the producer"
The A. A. A. goes on the theory that
it is better for the cotton producer as
we'll as for the country to sell smaller
amount of cotton at fair" prices than
to sell large quantity at below cost
prices. The net return to the farmer
under this theory, the agency holds, is
larger because his production costs on
the reduced volume are smaller.
The A. A. A. officials contend the
economic report overlooked several i'm
portant by-products of the cotton pro-
gram. They claim the program, by re-
quiring farmers to observe soil-con-