The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-09-04
NAVAL STORES.


The ending of the commercial year
shows very satisfactory trade in naval
stores. Much announcement and profit
was derived from the decreased produc-
ton. 1t was decided among the produc-
ers to cut 1878 per cent. less boxes than
in the previous year, and While TINS rule
was not strictly adhered to, the reduction
was sufficient to decrease the new crop
quite materially.
Following year of over-production and
the lowest prices ever known, 1t was
found necessary to reduce the production
in order to secure prices that would yield
a profit.
From the beginning of September to the
end of November the price of spirits tur-
pentne fiuctuated between 20 cents and
261h cents, with the bulk of the sales nearer
the lower figures. Then the market pass
ed to a lower scale and for a week then,
as at the close of December, the price
lowered around 241a cents.
The great bulk of the crop of 1862 be-
ing then out of the way, prices moved up.
From Feb / to the end of the fiscal year
on March 81, the quota tons were never be
low 2e cents. The highest price of the
year. 27st cents, was paid one day in
March.
The present naval stores year opened
April l. 1897, with small stocks at the
American ports, the total being but
poets of a reduction in the supply from
the new crop, and with apparently far
better feeling on all sides than had been
manifested in some time. The opening
quotation of. the new year was 27l4 cents,
and there seemed to be good reason to be-
lieve that prices would steadily rule much
higher than in the previous year. Re-
ceipts for the first two months supported
the contention that the operators had
abided by the agreement for one-third
reduction of the cut, and estimates were
freely made that the crop would be 10 to
10 per cent. short. ApriPs receipts at Sa-
vannah were but 1869 casks, against 29,-
Ill in 1885, and Mays 3S,O4 against 1925
in the same month of the previous year.
June, though, showed but a small reduc-
ton, receipts being 47,522 casks against
As 146, while July's receipts, unfortunately
for prices, showed an increase of $3.50
casks, being a, S65 casks against Al, 1875 last
year. This had the effect of discounte-
nancing the estimates of the reduction of
the crop and led to the belief abroad and
in this country that the shortage would
be inconsequential. In August there was
a falling off of 1852 casks, the net re-
CENTS being 4149 casks against 39001 last
year. The falling off in August is at
tributed in part to the continued heavy
driving rains which prevailed over large
part of Savannah district during the first
receipts at Savannah were 1929 casks
against 2O4, 448 casks for the first five
months of the season of 1869, falling
off of 90 209 casks or nearly 10 per cent.
The crop, as shown by receipts at the six
main primary receiving ports up to that
time, was, in round figures, about 2o6,Oo
casks against 2S5, 600 casks to Sept. l, 1896,
a falling off of $4,000 casks, or a decrease
in the crop of about 10 per cent. Past
years figures show that about 60 per cent.
of the crop is received in the first five
months. If this percentage of decrease
should hold good, the falling off in the
total crop, on the basis of $4,000 casks
for last year, the estimate based on the
most carefully compiled statistics, would
be about $3.50 casks. This would make
the total crop of 1898 about 472,OOO
casks or 10000 casks below that of 1866,
which was placed at $4,000 casks.
The falling off in the supply, though,
has not had the effect on prices that was
expected This is explained in part by
the contention that large stocks were car
ried over abroad from last year, and by
the sudden and unexpected jump in re-
ceipts in July. Large sales, 1t Is belieV-
ed. were made abroad for future delivery
on a basis of prices at Savannah almost
as low as those prevailing last year. In
Savannah, futures amounting to 1t is es-
timated, 10000 casks or more were sold
at 25lh cents for May-August delivery.
Even with such a heavy falling off in re-
ceipts in April, the market slowly went
down until the end of the month found 1t
quoted 25% cents, a decline of ~ cents.
Disappointment was already apparent
among factors and operators over the
tendency the market was displaying in
the face of favorable conditions. and it
was early evident that 1t was going to
prove as difficult to sustain prices as in
the previous year of unprecedented supply.
May opened at 254 cents, but weakened
toward the close of the month and barely
held steady for some days at 24% TO %
cents, another decline of l cent. At this
juncture three of the largest factorage
houses arrived at an understanding. some
what in the nature of pooling of their daily
receipts. BY this means they were ena-
bled, assisted by the determination of the
other receivers Of spirits, 10
force the market up In June
to 25lz cents {. The effect of this