The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-02-14
WEEKLY COTTON LETTER.
VI Hubbard, Price & Co.--States Tha
Will Reduce the Acreage

of Hubbard, Price G. Co.--States Tha
Will Reduce the Acreage.
New York, Feb. For the first tim
IN many months the movement of the Gro,
rails below that of 1892 this week. III,
result mas been to cause a sharp reaction
rom the lowest prices touched on the crol
~ wednesday and the creation of ,
slghtly hrmer feeling as to the future o
the COTTON market. 1t can scarcely b.
more clearly demonstrated that at thes
prices the investment demand is gradual,
| accumulatlng reserve supply of cottol
| ny thls sharp advance, brought about b.
| Tue railing off in the movement. Thi
| decrease IN the receipts is, in the mids
ol many, only temporary and due ell
tlrely to the intense cold weather that ha,
passed over the cotton belt, but at thes
prices such a belief is not strongly EN-
tertalned and on the first sign of strengtl
those who have looked for still furthtl
decline are quick to cover their outstand
! ing contracts.
1t is noticeable that the improved feel
ing IN commercial circles, due to tn,
stand taken by President Cleveland
regarding the financial question, is pro
crossing at a rate which promises to b,
almost in arithmetical proportions. Tn,
clearlngs throughout the country show
rapid increase since the first of Januar
and it is only natural that the cotton trad,
should be benefited by the improved con
dltion of affairs in all lines of trade. On
the other hand, as yet there has not m,
peared any large speculative demand for
the staple and it is still uncertain to what
an extent the movement to decrease the
acreage will cause a reduction in the cro
or next season. The most sanguine be,
never In cotton is frank to confess tha'
the increase in the visible supply at the
END OF the year must exceed 100000
allowing that there is one-half million
bales carried over in reserve stool
EXCESS of the actual requirements of the
mills, and the presence of this one mil
hon bales of cotton reduces the require
ments OF the spinners for the coming year
to below 100000 bales. and Therefore
the prospects of a crop exceeding that
size would tend to deprive the market of
the support from manufacturers. At tn,
moment it is felt that any advance now
would only be temporary in it's nature as
the buying power is not yet strong enough
10 sustain the market but there has been
n large amount of cotton in one shape and
another absorbed and taken away from
the markets during the last two months
and should the reduction in acreage nro-
ceed upon such lines as to indicate n cron
or less than 100000 bales for next wear
an advance would be in order after sucb
q movement is clearly demonstrated
from the best advices received the de-
mand for commercial fertilizers is pract
caliy as small this year as it was in 1892
ana on all Of the uplands east of the Miss
'!isslppi river this is an important factor
In calculating the estimated Weld of The
crop as the yield per acre from these up-
lands is largely due to the use of phos-
pnates. No doubt the states east of the
mississippi will reduce acreage devoted
to, cotton but the doubtful state is Texas
Where the emigration from the Northwest
mas been very large during the winter and
1t would seem probable that the peonIe
VINO have made q failure of GROWING
corn and wheat profitably in other sec.
tions OF the country would be ant to turn
their attention to the cultivation of n new
crop even at these low prices. II is This
feature of the situation which prevents
me trade from placing confidence in n
large reduction in the acreage in the com.
ing season. Those who are now holders
or cotton are probably stronger in their
convection as to the future of the mar.
ket than in any. other season at the pres.
ent time as they feel convinced that
tne crop cannot be grown at a profit and
disposed of at ruling rates but it is nd
mitted on all sides that an advance at the
present time would simply have tenden-
cy to increase the acreage and canse the
greater suffering throughout the Sontb
next year than has been experienced tbia
season.