The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-25
Hubbard Bros. & Co.'s Cotton Circu-
lar.

New York, Sept. A.-Hubbard Bros. &
Co. in their weekly review of the mar
kets, say of cotton: THE new feature
during the week has been the appearance
of the American spinner in the southern
markets as a buyer of his needed supplies
and his operations have given to the mar
ket a support which was not forthcoming
from the speculative public. This demand
from home consumers resulted from an
improved tone in commercial circles over
the probable success of the republican
party in the coming election and a desire
to acquire moderate stocks of goods be-
fore election day should the political out
look change this demand will fall to small
proportions, but now 1t furnishes another
support to prices.
Recent circulars from Europe show
conclusively the credulity of all European
authorities regarding the ultimate out
come Of the crop, and a reliance upon the
increase in the present reported top crop
prospects, in some sections of the cotton
belt. In fact there exists in Europe an
utter disbelief in the statement conveyed
in the bureau report, both as regards the
yield and the short picking season. 1t is
this feeling which has caused the contin-
entail spinners to regard improvement as
based on false premises from the very be-
ginning, and the report of a change for
the better in the outlook is regarded by
them as proving the correctness OF their
views With such belief current abroad
it is not strange that the foreign markets
respond but slowly to the improvement
at home and place more eredence upon
the movement of the crop than do our
home merchants. Their views are based
upon the consumption of American cotton
each year. With a crop of 7,l650 600 bales,
the visible supply of American cotton was
100000 bales less than last season. Dur
ing the same period there was an estima-
ted reduction in the invisible supply at the
American mills of fully 100000 bales. These
figures give a consumption of American
cotton of S,415,OOO bales.
Mr.. Ellison's cabled estimate of the
holdings of the European spinners on
Sept. l was 10000 bales, weighing each
four hundred pounds, against $4,000 bales
of the same weight, last season. Our
friends can judge what proportion of these
holdings were American cotton, but as
Stunning that they consisted of at beast
225,0O0 bales. there is a close approxima
ton to a consumption of s,650OCO bales to
be expected for the coming season, with
no change in trade conditions.
I'VE have frequently stated that esti-
mates are not conclusive arguments for
either an advance or decline in prices, but
in estimating demand 1t is sometimes nee
essary to formulate some comparisons
with the consumption of preceding sea-
sons. This year we have no reserve sup
plies of raw material in sight and while
it may be well not to anticipate too short
a yield, it is also best not to underesti-
mate the demand. The largest crop esti-
mate now current is $4,000 bales with a
late frost; the smallest we have had, is
7,25O 600 bales. Between these two esti-
mates there is a wide range of possibili-
ties in which consumption may play an
interesting part. At the present time the
tendency among consumers is to believe
that the large movement Of the crop will
cause a decline"