Evening star., 1946-10-30
3 Main Cotton Markets Close:
President Promises Federal Aid
Sporkmon Urges
CCC Purchases in
White House PurIey

President Truman today prom
ised an Alabama delegation to dc
everything possible ITO halt the
collapse of the cotton market
Representative Sparkman, Dem
ocrat, of Alabama, who acted as
spokesman for the group, tolc
reporters after a White House
call.
Mr.. Sparkman did not disclose
what plans the President has ir
mind, but the Alabama Representa-.
tive said that he himself had urgeo
as one measure that the Commodity
Credit Corp. be directed to purchase
cotton at full parity.
Mr.. Sparkman was accompanied
to the White House by Governor
elect James E. Folsom and Robert
E. Jones. who will succeed Mr.
Sparkman in the House when the
latter goes to the Senate.
Sparkman Urges Truman to Act.
Representative Sparkman told re-
porters today the slump was COM
pletely demoralizing," He said il
had ruined thousands of farmers
ginners, bankers and cotton mer-
chants, not just spectators"
Mr.. Sparkman called on President
Truman "to exercise whatever wal
powers necessary to Immediately
stabilize the cotton market"
MIR. Sparkman announced he hao
suggested to executives OF the New
York, New Orleans and Chicago
exchanges that the three markets
remain closed" until stabilization
program is worked out.
The Alabamian asked the Pres
ident in a telegram sent before the
White House visit to use the War
Powers Act.
In addition, Mr.. Sparkman said
he and Senator Maybank, Democrat
of South Carolina proposed to pre-
sent to Reconversion Director John
r. Steelman definite recommenda-
tions for stabilization" later today.
Statement by Agriculture.
The Agriculture Department state
ment sent to the exchanges read:
THE Department of Agriculture
today called attention to the favor
able statistical position Of cotton
and also called attention Of pro-
ducers to the availability of 921s
per cent parity loans to assist pro-
ducers in the orderly marketing OF
their cotton crop
"As of August /, 1916, there was
a carryover of 100000 bales, as
compared with IL 100000 bales a
year earlier, and with a record
carryover of 100000 bales In 1889
Also the Commodity Credit Corp.
has already disposed of the very
large stocks Of cotton which 1t had
previously accumulated and does
not have any stocks on hand which
are not committed for export.
Points to Carryover.
Representative of the depart
ment some time ago estimated that
the carryover of cotton on August
1, 1947, would be less than 1900, ,000
bales, the smallest in IL years. AT
the present prices and with a con-
tinuation Of the export program
expectation of American cotton
would be expected to increase ma
terially. This would still further
decrease the carryover.
Producers who take advantage OF
the 9212 per cent parity loans on
their cotton will retain title to the
cotton and be able to make such
disposition of it later as they wish
Meanwhile, the cotton textile
market doomed last week to chalk
up the heaviest sales for a similar
period in the last five years. The
initial drop in raw cotton prices and
announcement that textile ceilings
would remain unchanged in Noyem-
ber, despite this drop, generally were
held responsible.
In Vienna, Ga. the Associated
Press quoted Senator George, Dem