4 BULLETIN 457, U. S» DEPARTMENT OF AGRICULTURE. 



usually shown as the grade improves. This fact shows that the same 

 condition exists over the entire belt that existed in Oklahoma in 

 1912; that is, the very existence of the higher grades is practically 

 ignored. Probably nothing retards improvement in the methods of 

 handling cotton more than this penalizing of the higher grades, for 

 the thoughtful producer sees his product priced the same as that of 

 his careless and indifferent neighbor, and naturally feels that there 

 is no inducement to continue his painstaking work as long as such 

 marketing conditions exist. In effect, it is placing a premium on 

 the careless and indifferent farmer and penalizing the intelligent 

 producer. 



While Table 1 indicates that cotton from Strict Good Ordinary to 

 Middling is sold on grade, it also shows that the differences as quoted 

 on the various exchanges were disregarded. The New Orleans 

 exchange quotations for the months of September, October, November, 

 and December of 1913 indicate that the differences between each 

 grade above Middling were about 25 points, or a quarter of a cent, 

 and below Middling from a quarter to three-eighths of a cent. Table 

 1 will give an idea as to the range in prices over the entire belt. 



The matter of freight rates must receive some consideration. 

 While some towns, on account of water rates, enjoy certain advan- 

 tages from a transportation viewpoint, the difference in rates between 

 points is not a factor of great importance. While there may be a 

 wide range in freight rates between Texas and Carolina points when 

 shipment to some Carolina or eastern point is considered, the major 

 portion of the western crop is exported and is not affected to any 

 great extent by this difference in rates. It is well to consider that 

 while the East has an advantage in freight rates to eastern destina- 

 tions, the superiority of the staple of the western belt should more 

 than overcome the advantages possessed by the East in transporta- 

 tion. However, in comparing prices it may be well to allow for an 

 extreme variation of 50 points in order to absorb the possible differ- 

 ence in freight rates Any excess over this variation would indicate 

 that the local market was out of line. Taking, for example, Low 

 Middling December, the range in prices is from 9.09 per pound for 

 Texas to 12.10 per pound for South Carolina, a range of 301 points. 

 Allowing for a variation of 50 points it is still found that Texas for 

 that month is 250 points out of line, or $12.50 per bale lower than 

 South Carolina. While this instance shows the extreme range in 

 price, many cases are recorded where differences existed between 

 States ranging from 100 to 150 points during the same month. The 

 widest variations usually are found between the eastern and western 

 States. 



It will be noted that the States have been divided into the eastern 

 and western belt. Table 1 indicates that this division should be 



