Saturday, March 2, 2024

Farmers Warned that Planting More Cotton Will Create Glut, March 2, 1924

Cotton Farmer Is Given Warning to Plant Small Crop. . . Continued Enormous Cotton Acreage Will Tend to Deflate All Prices. . . Buyers’ Panic Has Been Created in Country’s Markets for Dry Goods. . . Is a Serious Matter. . . Attention of all Farm Organizations and Merchants Called to ‘Seriousness of Situation

By the Associated Press

Washington, March 1—A warning to southern farmers that “creation of an enormous cotton acreage this spring would establish foundation for further deflation of cotton values,” was issued today following a meeting senators and congressmen from cotton growing state, Senator Smith, Democrat, South Carolina, presided.

“As representatives of the cotton states,” the statement said, “we feel impelled to issue this note of warning to the cotton growing industry and in behalf of the welfare of the growers, upon whose success and prosperity depend the progress and full development of one third of the American nation.”

Announcing that definite action already has been inaugurated to investigate the cotton report issued February 1, the conference declared the value of cotton had “suffered a severe and drastic relapse” as a result of that estimate and assured cotton farmers of their united aid in the enactment of “sound federal legislation to alleviate existing conditions.”

“In the face of the constantly diminishing supplies,” the statement continued, “Of increased exports and heavy domestic consumption, a buyers panic has been created in the cotton goods trade as a result of recent declines in the price of the raw product. The present price of spot cotton in the local markets of the south is below the estimated average cost of production. Foreign and domestic mills consuming American cotton have by agreement or industrial action begun widespread curtailment by operating their spindles on half time or four days a week. The demand for cotton staple fabrics by retail merchants is being limited to immediate needs according to reports of the jobbing and wholesale trade.

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From the front page, Durham Morning Herald, Sunday, March 2, 1924

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