The Banner-Democrat. [volume] (Lake Providence, East Carroll Parish, La.) 1892-current, 1898-10-15
THE COTTON SITUATION.

Cotton continues down below the
cost of production and is a lower
price now than in the past fifty
years, all on account of the present
years. crop being estimated as large
as last year How the experts on
cotton crops can continue to hold up
their estimate to snch large yield,
when Georgia, Alabama, Mlssissip-
nj, Arkansas and Louisiana will
make less than half crop it is hard
TO understand.
The Picayune In an editorial on
the section situation" says:
Although middling cotton is still
quoted at 7-sc per pound, there
has been a distinct improvement in
the tone OF the market within the
past week. Up to within a few
days, the most depressing influence
noticeable has been the lack Of active
demand from spinners, who held of
presumably in anticipation of still
further decline in the market, hop
ing naturally to purchase their sup
plies at low prices. With but a
limited demand, the enormous pres
sure of receipts on the market natu.
rally depressed prices.
As already stated, there has been
a change in the situation within the
past week, and the change has been
in large measure due TO the better
demand. Spinners now appear to
believe the bottom has been touch
ed, and are beginning to take hold
more freely. AS frequently hap
pens, simultaneously with an in
crease in the demand, there has
sprung up. a noticeable diminution
of the pressure to sell, so that
altogether the position has improved
to an appreciable extent.
AS the Plcayune has stated in
previous articles, the present low
price of cotton is based upon the
very general belief. entertained by
consumers that the crop will prove
to be in the neighborhood of
100000 900 bales. 1t is surprising
how general this belief is, not only
among splnners, but among mer-
chants as well. 1t should not be
forgotten, however, that this large
estimate is based upon good weather
during the fall and a late winter.
The expectation of another bumper
crop, therefore, depends upon very
uncertain contingencies. So far,
the fall has been decidedly unfavor-
able, with excessive rains and fire.
quent storms. With such an inaus-
plcious beginning, there is no sfec-
ial reason to hope for more favor
able weather lator on. In fact, the
weather prophets freely predict an
early winter.
With an unfavorable fall, followed
by an early frost, there would be
certain to be an advance in prices.
The extent Of the advance would, of
course, depend upon the character
of the reports from the cotton fields;
but on an advancing market there is
always the hope that speculation
may take hold. With the specula-
tors in control, it would be difficult
to tell to what extent an advance
might be carried. 1t would be no
surprising experience to see an
advance of three cents per pound as
a result of weeks of active trading.
With prices as low as they have
been recently, the chances are main
ly in favor of an advance, as it
would require practically ideal con-
dltlons to bring about the ultimate
yield upon which existing low
prices are predicated. As prices
are now believed to be below the
cost of production, producers will
soon strive to hold back portion of
their crops in expectation of a reac-
ton in values.
For all these reasons the Plea
Yune believes that the chances are
more in favor of an improvement
than of a furthar decline