The midland journal., 1946-11-22
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Released by Western Newspaper Union
BREAK IN COTTON PRICES
A NATURAL REACTION
By PAUL MALLON >

WASHINGTON.-What happened
to the cotton market is harder to
find out here than the size of the
Russian army.
Likeliest explanation is that large
users of cotton cloth and specula-
tors had been buying too optimis-
tically, figuring a continuous infla-
ton would give them a profit any
time, but they found out from what
has been happening to other mar
kets since OPA disorganization, that
there might not be a continuous
imitation after all. AS a result, they
started running the other way at
once, as fast as they had been talk
ing the market up.
Actually the price of cotton
was too high for any reasonable
expectations excepting an end
less rise higher and higher-in
short a further heavy imitation.
1t was selling at 40 cents a
pound, actually 800 per cent
above prewar years. No won
der it fell $25 bale in three
days and caused the exchanges
to close the day thereafter. The
net period loss was held to about
$50 a bale-trecovcry thereafter
was weak, which tends to prove
my theory.)
1t is not out of natural sequence
that the New York cotton cloth dis
trict now has suddenly loosened up
on shirts, promising that all cotton
goods including sheets, underwear
and towels will be urged toward the
starving consumer market.
HINT POLITICAL PACT
But this inside story of the affair
is far too simple. No one in political
life seems to think nature took its
course, but all have filled the air
and newspapers with stories about
political plots, fat but hidden specu-
lators who acted in concert, lax
government administrat of the
market, a bad foreign selling policy
on the part of the government, even
old rumors of congressman specu-
lating-or nearly any story you may
wish to hear.
The senate agriculture COM
mittee conducted an investiga-
tion-and adjourned until after
the election, which is con-
venient time. The hearings last
ed one day and it developed that
no one had any sure idea of
what had happened, or what
caused it. Senator Thomas, the
chairman, scented fragrant
but not fragrant plot of the Re-
publicans to capture his home
state of Oklahoma thereby. He
said fatty the drop was
drought about artificially for
political purposes" This seemed
a rather high price to pay for
Oklahoma, even if any Repub-
licans had that much money
and wanted to spend it for that
uncertain purpose.
The hearing, you see, had devel-
oped the information that the cot
ton farmers had lost about 225 to
$50 million dollars in the fall of the
market, so obviously the decline, if
purchased, would run high in cost
far more than any Republicans have
been seen with lately. The story
otherwise failed to add up high, be-
cause no one suggested the Demo-
Gratis might lose any other cotton
state, say Texas or Mississippi, be-
cause of the break.
INVESTIGATION ON
At any rate, the committee is
sending ut questionnaires to find
out who old cotton on those three
big days. AS some runor has been
published by someone or other that
Thomas himself had speculated in
the cotton market, Thomas himself
mentioned to reporters that his
move to disclose the names certain
ly indicated he was not in the mar
ket at that time as he would hardly
be moving to expose himself.
The other stories are held in
varying esteem by those who
chose to believe them. The
government director of the cot
ton exchanges did not undertake
to tell anyone what happened
indeed, my agents suggest he
was not even asked-but offered
some evidence ON cotton prices
so complex that none of the re-
pOrters could understand 1t, IL
any of the investigators did (the
investigators are looking it
0ver). He admitted perhaps the
government allows too much Op-