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 
gerade above Middling were about 25 points, or a quarter of a cent, 
and below Middling from a quarter to three-eighths of a cent. Tabie 
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 viewpomt, 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 poimts 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 
ereat extent by this difference in rates. It is well to consider that 
while the Hast 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 poimts 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 
Middiing 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 Carolma. While this instance shows the extreme range in 
price, many cases are recorded where differences existed between 
States ranging from 100 to 150 poimts 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 
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