COTTON CROP

Hawera Star, Volume XLVI, 11 October 1926, Page 5

COTTON CROP

AMERICAN PRICES DROP.

PLANTERS HARD HIT AN APPEAL FOR FINANCIAL AID. BY CABLE — PBESS ASSOCIATION —COP STB (GUT NEW YORK, Oct. 8. Cotton dropped four dollars per bale, the lowest levels for five years to-day, after the publication of the Government report indication that the prospective yield would be 16,025,QU0 bales, an increase of 717,000 on the estimate of September 16. WASHINGTON, Oct. 8.

The situation of the southern cotton planters, is so serious., following the recent .price declines, that Senator Robinsion has -asked White House for an emergency fund of thirty 'million dollars to aicl the growers. Air. Robinsoh stated that the request was: made to pave the way for legislation appropriating this amount front the Federal Deserve Bank. The money would be distributed through the southern banks. Meanwhile Texas bankers are planning loans of fifty dollars- per bale at 6 per cent., merely on security of warehouse receipts or chattel mortgages attadhed' to the crop mortgage notes now held! iby them. This plan w;as put forth at a meeting of one hundred Texas bankers from all parts of the cotton 'belt, iancl at -the meeting the acreage campaign was also planned, seeking not less than 2.5 per cent, reduction of the acreage, and an increase an food crops.

RETIREMENT OF PORTION OF CIR.OP.

LIMITATION OF AREA

, WASHINGTON, Oct, 8. A similar plan to retire another two 'million bales throughout the .south will be launched immediately, which would make available of the present crop, only .twelve, instead of fifteen million bales. Such bales as were taken- off the market, would be absorbed in the 1927 crop, which is expected to he smaller on account of reduced acreage. Bankers will be urged to. convert some of their crop mortgages into new loans, with chattel mortgages attached, also warehouse receipts which are liquid assets in the cotton belt. The recent price decline cost Texas a million and >a half dollars daily for the last twio weeks, but the fact- that the State. ha-si one. :of the greatest feed crops i,n history iis expected: to enable farmers to weather the storm in the meantime. The situation was rendered more .acute to-day, when the Department of Agriculture forecast gave the estimate of 17,000 bales more than, previously indicated, this causing the break on the New York market, equivaelnt to four dollars a. bale.