Evening star., 1946-10-31
Truman Scans
Cotton Crisis; /
|QuickActiopOut
| Market Rises Unit
! As Buyers Flock In;
| Stocks Also Up
BY the Associated Press

President truman TOOK the
cotton price situation under
advisement" today, but White
House Press Secretary Charles
G. Ross said he expects no i'm
mediate Government action.
Mr. Ross said at a news confer
ence that the matter is being studied
both by Mr.. Truman and Recon-
version Director John r. Steelman.
Asked whether he expects any ac-
ton today. Mr. Ross replied: Il do
not"
Cotton prices in the New York
market moved up, then down, and
then smartly upward to reach the
$10-a bale daily limit today in heavy
trading following yesterdays 24-hour
suspension of transactions in the
futures market The $40 limit also
was reached in New Orleans.
The whole New York market
surged forward after the dip, but
cotton for delivery in nearby months
had to rise from a point S. bale
below last Tuesdays close, when
some prices had effected a tumble
of $50 a bale over a two weeks
period
Stocks Up Smartly Also.
The stock market also caught the
buying fever and the ticker tape
ran 3 minutes behind floor trading
shortly after noon with many issues
up from 81 to more than S5 a share.
Cotton traders explained today's
violent fluctuations by saying that q
heavy volume of overnight iquida-
tion orders had battered down the
opening advances.
Then the buyers overran the mar
iket, and cotton for delivery in the
near months December. March,
May and July-reached the per
missible limit of advance in single
days trading shortly after noon.
Earlier. Representative Sparkman.
Democrat, of Alabama had predicted
some Government move. possibly by
nightfall.
Mr.. Ross said he did not know
what action may be taken, adding
that is up to Mr.. Truman and Mr..
Steelman.
Before the cotton exchanges
resumed trading after yesterdays
shutdown, Mr.. Sparkman told a
reporter he expected Mr.. Steelman
to wipe out 120-day limitation on
advance pricing by mills of finished
cotton goods.
/ Textile Decontrol Considered.
The Alabama lawmaker also said,
after conferring with Mr.. Steel
man, that price controls on cotton
textiles may be abolished. But he
added:
"I don't consider decontrol as
| important as removal of the 100
day limitation"
In the wake of these developments.
Chairman Thomas of the Senate
Agriculture Committee announced
/ in Oklahoma City that he had asked
Mr.. Truman to eliminate Immediate
ly all OPA controls over cotton mills
and the textile trade in order. to
restore confidence in the cotton in
dustry and to stabilize cotton prices. :"
/ Senator Thomas also called on
the President to bolster the sagging
market by having the Commodity
Credit Corp. purchase at least l.
100000 bales of cotton at not less
than the parity price. This is 27.23
cents pound for the grade on which
market quotations are based.
In Macon. Ga. special congress
sional committee which has been
studying marketing and production
problems recommended a cotton
marketing holiday
| The committee. headed by Rep
resentative Pace, Democrat, of Geor-
gia, opened another of series Of
hearings here today to get the views
of farmers, businessmen and legis-
lators
In Government circles there was
considerable doubt that price con-
trolls on cotton textiles will be re-
moved at this time, although an
OPA official said he would not be
surprised anymore at a decontrol
order ION any commodity"
Would Affect Wool Also.
This official said removal of cotton
textile ceilings would force decon-
troll of rayon and wool as well, and
that this inevitably" would push
ceilings off all clothing and other
textile products.
| OPA said only a few days ago
that it planned to retain controls on
textiles and basic clothing items. 1t
said the same thing about shoes and
Heather, however, and last night Mr..
Steelman ordered those products
decontrolled, over OPA objections.
AS for the 120-day limitation on
advance pricing, OPA said it had
been given no indication that this
is to be removed. One official said
he does not see what good it would
do.
Senator George, Democrat, OF
Georgia contended in Vienna, Ga,
that the principal reason for plum
melting cotton prices is inability OF
textile mills to compute prices on
finished goods for more than l2o
days ahead. due to OPA restrictions.
He added that as consequence
mills are limiting their purchases OF
cotton. -.-... ..
i On the other hand, an OPA official
/ (See COTTON, Page A-220
II m n