AMERICAN COTTON CROP.

Taranaki Daily News, 14 December 1926, Page 8

AMERICAN COTTON CROP.

A recent cable announced that in the opinion of the Federal Department of Agriculture of the United States the cotton crop in that country for this year would be the largest in history. It is estimated at 18,30!),000 bales, or 800,000 more than last year, which was also a record. In the history of American cotton production the output has exceeded 16,000,000 bales twice, 15,000,000 three times and 14,000,000 on four occasions. This year’s record, which is so far ahead of all others, is a striking commentary upon the fallacy of the old argument that only by almost unlimited supplies of cheap negro labour was it possible to increase cotton production. The highest averages of increase are in the States where white labour and modern machinery and methods are most used. During the last few years the production of cotton seems almost to have exceeded the demand. So much so that proposals have been made to Congress for a scheme of advances to ba made to growers to enable them to hold over a certain amount of their crop, and so artificially stimulate the price. Economists point out, however, that although America is the largest producer of cotton she is by no means the only grower, and if prices are “stabilised” at a high value, production in other countries will be stimulated until American growers will find their surplus a drug in the market. Furthermore if by a lower price for the raw material the price of textile goods is kept down the buying power of the consumer is increased, and the demand is thereby increased. In 1869, for instance, with a small crop, cotton was 26 cents per pound. Two years later it was down to 14 cents, yet the increase in production and the demand which the lower prices created made the total value of the two crops almost equal. Artificial pries fixing of important commodities has a habit of leading to retaliations in other directions, and the American cotton grower is therefore urged to help an increased demand for manufactured cotton goods by accepting current market prices for the raw material in the belief that eo stimulated the demand will in the long run mean better results for both grower and consumer.