The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-07-20
TO STOP PRODUCING.
Factors and Producers to Hold Up
the Turpentine Market.

hAN A0A PbhkAAS AAUAhSst
A Circular Letter to Be Issued by All
the Factors to Their Custom srs Urg-
ing Them to Stop Production, and to
Cooperate in an Attempt to Keep
the Market Up to Prices That Win at
Least Equal the Cost of Production.
oLondon and Antwerp Supplies Fall
ing Short.
The naval stores factors of Savannah
have prepared an important circular
which they will issue at once to all the
producers of spirits and rosln with a
view to having them to take steps to
maintain the prices at figure which will
at least equal the cost of production.
The last signature to the circular was
obtained yesterday afternoon, and It will
probably be printed and sent out to-day.
The effort is thus being made to cut short
the movement of the buyers who are try
ing to break the market by using the
stock they have on hand here and in
London. OF about $4,000 barrels Of spir-
its stock on hand about 30 per cent. is in
the hands of the buyers, while the bal
ance is controlled by the factors.
The factors have for some time been
holding this stock with a view to main
tanning market price which will at least
equal the cost of production. The issu-
ing of the circular is a movement to
strengthen the position taken by the fac
tors.
RECOMMENDED TO REDUCE PRODUCTION.
The circular is as follows:
Savannah, ca. July 1s, 1s94.-To the Tur-
pentine Producers: 1t is well-known to pro
ducers throughout the country that the Sa-
vannah factors have been, and are now,
making fight to maintain theprice'of,spi
turpentne and resins. The buyers, both
domestic and for export, on the other hand,
are equally determined to reduce the trading
basis to the lowest possible point. AS re-
suit Of this little trading has been done in
turpentine for the past two months, and we
have accumulated stock, which though
larger than is usually held is not as much as
we are in position to carry. The price asked
by the factors is not unreasonable and is
scarcely equal to the cost of production.
While the stock of turpentine in our hands
here is larger than usual the stocks at sec
ondRry ports and other distributing points is
much smaller than usual, leaving the actual
stock unConsumed in all OF the markets
larger than is generally carried at this season
of the year. The difference being sthat the
surplus is now held here in the hands of its
friends instead of being carried in the
markets abroad by spectators and dealers.
BGleNluR Luab bne DeSb interest OF bnb IN
dustry viii be served by maintaining the
position we have taken, even at the expense
OF reduced production, we recommend that
producers commence at once to discontinue
work on the most Improbable Of their boxes;
that they continue the policy of selling
their product through the factors, thereby
forcing the domestic consumers to
buy on an open market in compe-
tition with foreign buyers and that the strict
est economy in every branch of their business
be exercised in order that they may
A1zn ~
&9e are to SPde tn ne surplus u4 9se
market at prices that will yield fair
return to producers for their labor. Very
respectfully, Ellis, Young & Co, Peacock,
Hunt & Co, Savannah Naval stores Com
panY, w. G.. Powell. president; Hunter,
Pierce & Battey, +. NJ. Mccall, per A. G. Cas-
sells; McNatt 81 Moses Greig, Jones Wood
Crawford. Henderson & Co, Chestnut &
O'Neill, J. P. Williams & Co, Nelson, Cham
pion & Co.
SIGNED BY ALL THE FACTORS.
The circular, it will be seen, is signed
by all the factors. In this movement they
are supported by the producers, who
themselves have felt severely the effects
of the attempt to bear the market.
The question is how long can the buyers
hold out. Their stock on hand is not an
unusually large one and the demand Gre
ates a constant draft upon it. The Iris
will probably carry cargo across when
she arrives here, which will be within a
week or TWO.
The present stock carriedby the factors,
while larger than is usually carried by
them is, they say, not as large as they are
able to carry when it comes to question
of lettering the trade The producers
have had hard time of it within the last
two or three years, and it is about all
some of them have been able to do to pay
out.
FRIENDLY MOVEMENT.
The movement will undoubtedly be
looked on as friendly one on the part of
the factors and there is a probability
that within a short time they will cease
to work a large portion of the boxes.
The cessation of working the virgin boxes
last year had favorable effect on the
market The supplies in the
foreign markets it is said are fall
ing short and wheu the demand
begins to exceed the available supply the
factors and producers will necessarily
have won their victory or the world will
have to stop using turpentine. The last
circular sent out urged the producers to
ontinue to sell through the factors in
stead of selling direct to the buyers at
the still This advice has, in most in
stances, been adopted and has put the
producers in stronger position.