The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1946-01-15
COTTON CEILINGS
NOTICE ISSUED

WASHINGTON, Jan. 14-(P)-The
OPA, acting to meet legal require
ments, today issued formal notice
Of proposed price ceilings on the
1916 crop of raw cotton.
But the agency said fatty that
if the price of cotton becomes
stabilized before the harvesting
season, ''it may not be actually
necessary to put the ceilings into
effect"
OPA said the advance notice
simply puts the agency in posi-
ton illegally to impose ceilings
if necessary"
For 15-16th inch naiddling Ameri-
can upland cotton, the basic grade
upon which prices for all other
grades and staples are based, the
proposed growers ceiling is 24.09
cents a pound for area one, which
includes the western parts of North
and South Carolina.
OPA said that in general this
represents the current parity price,
with an allowance for transporta-
ton, plus cushion to allow
for possible subsequent advances
in parity between now and the
end, of the year, when most of the
1916 crop will be marketed.
Premiums and discounts estab-
lished for other grades and staples
|
reported differentials on sales of
cotton between Aug. l, 1945, and
Dec. 81, 1915.
Under the Price Control Act,
OPA is required to give notice of
proposed ceilings on agricultural
commodities at least Is days ahead
of the normal planting season. The
notice, OPA said, has been ap-
proved by the Agriculture Depart
ment.
"The rise of cotton prices now
threatens the whole sterilization
program in the cotton textile field"
said OPA Administra Chester
Bowles.
He had said earlier that cotton
ceilings were necessary to hold
down costs Of textiles and cloth
ing.
Noting that other major agri-
cultural commodities have been
operating under price ceilings dur
ing the past few years, Bowles
said:
'1n fairness to farmers, con-
sumers and manufa cturers it would
not be proper to refrain from an
nouncing the proposal to establish
ceilings on cotton Xxx.
1.-THE advance in the cost Of
cotton puts a squeeze on all latter
phases of production in cotton tex
tiles. Immediately pressure is
created all along the line for like
increases in ceilings on processed
cotton and finished goods"
OPA said the market price for
l5-16ths inch middling grade cot
ton, sold at Memphis, Tenn. on
Jan. IL stood at 24.45 cents a
pound. The agency said this is
about IA cents above parity and
2.l8 cents above the market price
last August.
Bowles said OPA representa-
tives of cotton mills already had
demanded higher prices 'because
they say, the high cost of cotton
is Wiping out their profits.''
III it can be shown" he con-
tinued, "that this increase in ba
costs actually does bring their
earnings below peacetime levels.
this relief. according to minimum
standards of the law must be
granted.
Our whole cotton clothing pro-
gram depends on the stability of
cotton prices. Any increase in cot.
ton and cotton textile at this time
must be largely passed through
TO consumers because previous
price increases have been absorb.
ed by converters, garment mann.
facturers, wholesalers and retail.
ers almost to the full extent that
we can call upon them to absorb
under our pricing standards"
BoWles reiterated his statement
OF a week ago that "OPA intends
TO 40 everything in its power to
avoid the necessity of raising
prices for clothing and textiles.
In addition to proposed ceilings
for each grade and staple. the
tentative schedule sets up ceilings
for sales at public warehouses and
for cotton delivered at the mill.
OPA said the proposed growers
ceiling of 24.O9 a pound for 49,
l6ths inch middling American up-
land cotton is based on the present
parity price of 80 cents a pound
Tor 7-oths inch middling at Mem
phls, plus cushion of two
parity points, or IA cent a pound.
as allowance for any subsequent
advance in parity.
To this, the agency said. has
been added 1.48 cents pound as
the premium for 1915 inch mid
ding over 7-8-inch middling. plus
.54 cents a pound to cover trans
portation costs from Memphis to
area one.
AS for ceilings for cotton landed
at the mills, in the group B mill
area which includes South Caro-
lima and the southern and south