NORTHERN ADVOCATE DAILY FRIDAY, AUGUST 14, 1931. A COTTON CRISIS

Northern Advocate, 14 August 1931, Page 4

NORTHERN ADVOCATE DAILY

FRIDAY, AUGUST 14, 1931. A COTTON CRISIS

Registered for Transmission Through the Post as a Newspaper.

Another illustration of the distressing period through which industry is passing, the whole ■ world over, is provided by the difficulties in which cotton growers and manufacturers are finding themselves. According to a cable message published yesterday, the price of raw cotton has dropped to the lowest level for 31 years. This drop, it was stated, is the sequel to a surprisingly high estimate of the American cotton crop, which is expected to yield 15,000,000 bales. In addition to this there are 9,000,000 bales in the United States and elsewhere which were held over from last season. Once again, it would seem, the policy of “carry over” is one fraught with danger. The original Joseph was evidently possessed of more pro-, phetic vision than his modern emulators, for the fruitfulness of the soil and flocks has time and again brought sorrow to those who rather than meet ruling market conditions, have hoped to improve their position by retaining possession of produce “until next year.” ‘ The Lancashire spinners, who really needed no further buffeting, have paid dearly for advance buying, which is a near relative of “carrying over,” for they have 1,000,000 bales in store, which, owing to the drop in prices, 'has depreciated in value to the extent of £1,500,000. There seems to be no doubt as to the accuracy of the reports concerning the abundance of the crop of cotton in America, for another cable message received today announces that the Federal Farm Board has taken drastic steps to stabilise cotton prices. It has telegraphed to the fourteen governors of the cotton-growing States urging them to give a lead to the movement to abandon much of the cotton now growing, and thus eliminate the excess which threat-, ens a direct disaster to these States. The board has suggested that every third row of cotton should be immediately ploughed in. Once again is resort being made to artificial control of Nature’s bounteousness. The cotton industry, like every other industry, requires the maximum assistance at the present time, but it is open to question whether efforts made to defeat the fundamental principles of supply and demand do not, in the long run, defeat their own ends.