Evening star., 1963-02-04
Free Cotton Market

To develop the points I
wish to make / must take you
back to an historic meeting I
attended in Washington in
June, 1888. This meeting was
called by the Secretary Of
Agriculture. There were'about
100 men present, all interest
ed in some aspect Of the cot
ton business.
AS I remember 1t, the tele-
gram calling this meeting was
rather vague as to its pur-
pose. but soon after the
meeting opened, it was ap-
parent that its purpose was
to get, the cotton trade to ap-
prove a decision already made
for the Government to pay
farmers to plow up every
third row of the growing cot
ton crop.
I spoke out against this
with all the vigor that 1 could
command. I said If the Gov
ernment felt it owed the cot
ton farmer something, that
they should pay it to him and
not try to make the market
pay it. because the market
would not do it for long, and
in the end, if we followed that
road, the United States would
lose its cotton supremacy.
One other man supported me.
But our voices we're like one
crying in the wilderness.
At that time the Civil War
psychology still persisted that
cotton was king in America.
The United States produced
more cotton than all the rest
of the world put together.
We produced then 141a mil
lion bales for consumption.
We are producing the same
amount today, but a sizable
quantity goes in the Govern
ment loan.
In these 80 years foreign
free-world production has in
creased from 81a million bales
to 81 million bales. II we in
clude Russia and China, the
increase is even greater. Syn
thetics have increased great
ly. Obviously some of this ac-
CELEBRATED growth in foreign
cotton and in synthetics
would have taken place in
any case. To me. however, the
most frightening aspect Of
our present situation in cot
ton is the fact that we are
losing markets at home and
abroad, while foreign cotton
and synthetics are both going
down in price and up in use.
In the past 80 years we have
lost over 3 million bales per
year in exports Of cotton.
What can be done now to
save our raw cotton industry?
Obviously United States cot
tons principal competitors
are foreign cottons and syn
thetics, both Of which oper-
ate in a free market. World
commodities like coffee, cot
ton, sugar, wheat, ETC.. pro-
duced for export, cannot be
sheltered from world compe-
tition.
II our cotton is to regain
its rightful position in the
domestic and world markets,
then the United States Gov
ernment must restore cotton
TO a free market. Reducing
the price is not enough. Does
anybody imagine that any
bureau in Washington knows
what the price Of any world
commodity. such as cotton,
should be? The answer TO this
question is TO be found in the
record Of Government price,
fixing for these past 80 years.
Just look at the record OF the
two-price system on cotton.
The United States q number
OF years ago officially brand
ed such system as dumping. I"
and now at a time when the
rest OF the industrialized free
world is moving in the oppo-
site direction. we engage in
this system not only for cot
ton but for other commodi-
ties. Among other faults. this
two-price system on cotton
lays q wholly unfair and in
defenSible burden on our cot
ton textile mills In allowing
their foreign competitors in
the domestic goods market 10
acquire their raw material,
even United States-grown
cotton. at ga cents per pound
less than the United States
mill must pay.
In my opinion, nothing but
a return TO the free market
will save our United States
raw cotton trade. United
States cotton is fighting a
desperate battle for survival
with both hands tied behind
It's back so long as the Gov
ernment continues control Of
cotton production and OF the
cotton market.
w. L. Clayton.
vrn,tutnt vT.aw