The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-10-28

/ from falling below the very small figureo
ut the end OF last season. At about the
present range OF prices, our own spinnefs
and the continental spinners might each
very safely buy 100000 bales above their
requirements just as they have done before
when they thought cotton was very cheap.
Another block OF 100000 bales as an addi-
ton to the stocks OF European and Amer
lean markets at the end Of the season
would not be burden. Indeed. such an In
crease in stocks by serving to prevent
such an undue advance as occurred last
summer would stimulate consumption.
I have thus indicated how with low
prices crop Of 10,900,000 bales could be
disposed of, though the probability Of so
large crop is too remote for serious con-
sideration. Indeed, under certain conditions
the crop may fall million to a million and
q half bales short Of that quantity. When
prices are low, 1t Is astonishing how much
more cotton Is consumed, and how quickly
big visible supply disappears. II our crop
should be 100000 bales and the spinnerc
buy only what Mr.. Ellison says they VIII
probably need for actual consumption, the
result would be an addition OF less than
600, 900 bales to the stocks OF European and
American markets at end of the season. II
In January, when arrangements begin 10
be made for another crop, very low prices
should prevail 1t may very safely be as
stunned that the acreage In cotton will be
materially reduced. 1t will be a matter
Of necessity and not entirely OF choice,
from the simple fact that Investigations
made by me as secretary Of an Investigate
ing committee Of the senate convince me
that a majority OF those who raise cotton
can not produce 1t at so low cost as the
amount they would realize from present
| prices.
probable surplus OF 600 900 bales over
| ~ al Ia NJ auinuers from
| the present crop would have no appreciable
effect In preventing the advance from low
prices which would certainly follow the
belief In any considerable curtailment of
acreage OF the next crop. The $780, 900 bales
would be quickly absorbed by spinners
and prices might be carried up as much too
high as they are now too low. 1t Is urged
by some of those who hope that cotton will
go still lower and who would profit by the
decline, that print cloths are selling now
at the same low price at which they sold
during the season of 1894-95, when cotton
reached the low price OF 5 9-16c, and they
argue from this that because print cloths
have declined to the low price Of that sea-
| son that cotton should also decline TO the
low price to which it fell in that great de-
preston. At first this statement seems
! plausible, but II reveals only one-half OF
| the truth. The other half of the history OF
that season is that the price OF print cloths,
| in consequence of the small stock and good
demand did not decline in anything like
the same degree as the decline in cotton.
AS a result of the far greater decline in
cotton than in cotton goods the cotton mills
of the country did very profitable BUSH
ness. The dividends of the Fall River cot
ton mills for 1895 averaged about per
cent against only about per cent for
the previous year. Indeed, the mills OF the
entire country were exceedingly prosperous
during the season OF 1S9495 Moderate
prices which will afford the spinner fair
margin of profit and yet give the cotton
grower q fair and profitable remuneration
for his toll are in the end for the best in
terests alike OF the manufacturers and
producers of cotton.
Alfred B. Shepperson.
| New York, October 20, 1897.