KELIABILITY AND ADEQUACY OF FAKM-PKICE DATA 
15 
Table 2. — A comparison of United States annual crop-pear prices, unweighted 
and weighted by methods a, o, c, and d, and annual State crop-year average 
prices of cotton 
[Cents per pound] 
State 
Crop year beginning in August — 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 
1919 
1920 
1921 
1922 
1923 
1924 
14.0 
9.7 
11.5 
1.2.5 
7.4 
11.2 
17.7 
27.2 
28.8 
35.0 
17.2 
16.9 
23.5 
29.0 
23.0 
11.5 
12.5 
7.3 
11.2 
17.3 
27.1 
28.8 
35.4 
15.8 
16.9 
22.8 
28.7 
14.0 
9.6 
11.5 
12.5 
7.4 
11.2 
17.3 
27.1 
28.8 
35. 2 
15.8 
17.0 
22.8 
28.7 
22.9 
13.9 
9.6 
11.4 
12.5 
7.4 
11.2 
17.3 
27.1 
28.8 
35.1 
15.9 
17.0 
22.9 
28.8 
22.9 
14.0 
9.9 
11.6 
13.0 
8.1 
11.6 
17.6 
28.3 
28.0 
35. 2 
14.6 
16.6 
23.4 
30. 3 
22.7 
14.1 
9.4 
11.6 
12.7 
7.7 
11.2 
17.4 
27.6 
27.8 
35.6 
14.8 
17.0 
24.1 
29.2 
22.6 
14.0 
9.5 
11.7 
12.9 
7.8 
11.2 
17.6 
27.4 
29.2 
36.3 
16.0 
17.4 
24.6 
28.8 
22.8 
14.0 
9.6 
11.6 
12.9 
7.5 
11.3 
18.0 
28.0 
29.4 
35.7 
16.9 
17.3 
23.7 
29.7 
23.0 
18.6 
13.0 
14.6 
15.0 
12.4 
14.8 
24.5 
45.9 
41.8 
36.1 
16.4 
16.2 
20.9 
28.6 
23.5 
14.0 
9.5 
11.4 
12.9 
7.3 
11.1 
17.7 
27.4 
28.8 
34.9 
15.9 
16.9 
23.3 
29.6 
23.1 
14.1 
9.8 
11.9 
12.6 
7.3 
11.5 
18.2 
27.7 
28.2 
36.2 
15.4 
17.0 
23.5 
31.1 
23.4 
14.0 
9.6 
11.4 
12.2 
7.6 
10.9 
16.8 
26.4 
28.6 
35. 8 
16.8 
15.8 
22.5 
27.7 
22.0 
13.8 
9.9 
11.3 
12.2 
7.2 
11.0 
16.6 
26.0 
29.5 
34.4 
17.3 
16.8 
21.9 
27.8 
23.0 
13.4 
8.9 
11.1 
11.8 
6.8 
11.1 
17.0 
25.8 
27.4 
35. 
12.8 
16.4 
21.5 
28.1 
22.3 
14.1 
9.3 
11.8 
12.1 
7.1 
11.6 
17.6 
28.0 
28.1 
35. 3 
13.7 
17.2 
23. 3 
29.8 
23.1 
13.1 
9.3 
10.4 
11.6 
6.9 
10.9 
17.0 
27.8 
27.2 
31. 9 
13.3 
15.7 
21.4 
28.7 
23.4 
14.1 
9.2 
11.9 
12.8 
7.1 
11.4 
17.5 
27.6 
27.6 
34.0 
13.9 
16.5 
23.2 
29.7 
22.8 
15-year 
straight 
average 
U.S.(Ai) 
•U.S. (B») 
U.S.(C») 
U.S. (DO 
Va 
N. C 
s.c 
Ga 
Fla 
Ala 
Miss 
La 
Tex... 
Okla 
Ark 
Mo 
Tenn. 
19.0 
"!«."§ 
18.8 
19.0 
18.9 
19.1 
19.2 
22.8 
18.9 
19.2 
18.5 
18.6 
18.0 
18.8 
17.9 
18.6 
i Method A: The United States annual crop-year average price is obtained by averaging the United 
States monthly prices, using the usual monthly percentage of the year's marketings for the United States 
as a basis of constant weights from year to year. These constant weights based on the percentage usually 
marketed each month are determined from the United States 10-year averages. The United States monthly 
prices are obtained by averaging the State monthly prices, using estimates of annual cotton production by 
States as a basis of constant weights from month to month within the year. The United States annual 
price is really an index price as constant weights are used. This is the method now used by the department. 
2 Method B: The United States annual crop-year average price is determined by averaging the State 
annual prices, using the production or total sales of cotton by States as weights. The annual State prices 
are obtained by averaging the monthly prices for a given State, using the monthly percentage of each 
year's marketings as weights. A monthly United States price average can not be obtained by this method 
with the State marketing weights on a percentage basis. 
3 Method O: The United States annual crop-year average price is ascertained in the same way as by 
method B, except that the monthly percentage of each year's marketings by States is applied to the pro- 
duction of cotton and the estimated bales sold per month per State are used as weights. These bale weights 
are used in weighing State monthly prices to obtain the State annual average. A monthly United States 
price can be obtained by cross-adding each month the State average price times the number of bales sold 
and dividing by the total of the bales sold for that month. This was done in Table 1, where the United 
States monthly prices of cotton obtained by methods A and O are compared. 
* Method D: The United States annual crop-year average price is ascertained by combining the United 
States monthly prices as obtained under method A by the use of monthly weights based on the current 
year's marketings by months for the United States. The current year's weights are used, as in method C, 
but for the United States as a whole and not by States. 
It is extremely gratifying to note that the annual averages as 
ordinarily computed by the department by method A check so 
closely with the averages obtained by method C. In the 15 years 
from 1910 to 1924 the annual averages are identical for 6 years, and 
vary only 0.1 cent in 4 years. In fact, there are only 2 years out of 
the 15 in which the difference was more than a half cent. 
The greatest difference occurred in 1920, when the price of cotton 
dropped from 34 cents per pound in August, 1920, to less than 10 
cents by the end of the crop year . That was the year when cotton 
farmers held more than the usual amount of cotton until late in the 
season. The method A average was 17.2 cents, whereas the method 
C average was 15.8 cents, a difference of 1.4 cents. The method A 
average, being weighted by the usual rate of marketing cotton, month 
by month, has the early high-priced months weighted more heavily 
than when the actual marketings for the year were used. The only 
other year when the difference was greater than 0.4 cent was the 
crop year 1922-23. In that year the method A average was 23.5 
cents, compared with 22,8 cents, the method C average, a differ- 
