The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-18

birthday, but the transactions III futures
today Were very geographically S0O.ooo
bales-and the closing prices were thirty
seven to thirty-eight -hundredths OF
cent higher than Saturday doth lnst.l
for deliveries in the present crop. anu
seventeen to twenty Observation-Disclosures Tor
deliveries in the next crop. Spot cottoh
advanced three-siXteenthS Of Il cent 10
eight and three-quarters cents for md
ding uplands. In Liverpool spot cotton
advanced three-thirty-Seconds or p3h-
ny ON Saturday and one-slXteenth OF
penny today, closing at five and one
eighth pence for m:idling. while futures
here gained about fve-thirty-seconds of
penny since Saturday. Southern
markets have kept pace fully with the
advance here. There was liberal buying
here for futures today for foreign ac
count, for Southern account and appar-
emily from all quarters. Private cables
from Liverpool variously attributed the
sharp advance there to enormous buy
ing for home and continental account,
due to legitimate causes and to large
buy ing for Alexandria, Egypt account
NV letter of the 9th inst. stated that
the recert advance and activity i'm cotton
were chiefly due to large purchases of
spot CoUdOU ana luttlitS lOI I<ulbpSdlA ~
count. One of the reasons given for the
liberal buying was the general reduc-
ricn in European estimates of the
American crop. l should have mention
I'd also the general realization by our
European friends of the fact that in
their expectation of a large and lower
prices they had failed to secure their
share of our crop. The diminishing
stocks in Europe now 1,114.00 bales
less in Liverpool and 233. 600 bales less
in continental ports than a year ago.
emphasized the necessity for buying.
The exports of Amcriacn cotton since
September l are 100000 bales less
20 Great Britain than for corresponding
time last season, and 600 600 bales less
10 the Continent. The size of the
American and India crops are still mat
tiers of conjecture, though admitted TO
he very much less than last season. but
the small and diminishing stocks in Eu-
Korean markets are concrete and Slgni-
tcant facts compelling prompt and lib
cral buying by the spinners and dealers
who have need for cotton now or III the
early future.
While English and continental spin
ners and operators seem to have realized
that tie supply of cotton for the sea-
son will be far less than their earlier
expectations. they have not vet fully
grasped the extent of the increased
consumption of cotton due to the great
wave of prosperity now pcrvading nearly
every civilized country. American mills
are enjoying flood tide of activity and
prosperity and European mills are doing
larger and more prosperous business
than of recent years. Goods and yarns
have advanced correspondingly with cot
ton; indeed they advanced sharply long
before cotton.
The published reports of the Lanca-
shire England cotton mills for the
year 1889 show larger average profits
than for any year since 1888. Their
annual dividends ranged from to 1917
per cent. averaging about 10 per cent?.
after carrying to the reserve fund rather
more than half as much as the de-
clared dividends. The mills convert
cotton into yarns and goods purely for
the profit there is II. the process, and an
advance in cotton will not affect the
volume of their business at all SO long
as an equivalent advance can readily
be obtained for the manufactured pro-
duct. \ pound and ore fourth of raw
Gotten will make five yards Of goods, SO
that an advance of cent pound on
cotton would cause an increase of only
aDout one-fourth of cent a yard in
the cost of many classes of goods.
Surely so small an advance would not
check the sales of goods even if trade
was not 50 generally active and hcaEhy
as now.
The recent circular of Mr.. Thomas FL
lison. of Liverpool. has just been re-
ceived. He takes my estimate of the
crop (9.j00,000 bales as the basis for
his estimates of supply and consumption
for the season, and assumes that while
there will be no increase in consunp
tion by the mills of any country, the
European spinners will consume 300
O00 bales less than last season. He
thinks that if more American cotton
should go to Japan less will go to
American mills. and says the reduction
of 100000 bales in European consump-
tom is 'aS certain to occur Though 1t Is
difficult to say when or where as the
annual visit Of the tax collector, unless
the American crop reaches 10 00O,N}0
bales" In referring to MY statement
in December that. allowing only for the
increase in American consumption. H.
100000 bales of American cotton would
DC Wanted IOF tue SedSOIl, MI i%iiotlH
says: Where the cotton is to come
from goodness only knows. Good trade
can do wonders. but it cannot enable
spinners to evolve yarn out of their
inner consciousness" fully agree
with Mr.. Ellison that European spinners
cannot spin cotton yarn out of material
so shadowy as their Inner conscious
ness" nor is American ingenuity equal
to the task, though wooden nutmegs
and sawdust hams are made in Con
necticut. Mr.. Ellison estimates that at
the end of the season, September 80. !
there will he 6S6 900 bales of cotton in
European ports, and that European
mills will have Il surplus stock of 236,- |
600 bales. These port stocks and mill
reserves will furnish the 800 600 bales F..
needed ITO make European consumption
as much as last season. If the Euro |
pean mills do not spin as much or more
cotton than last season. it will be, !
think. only because of their inability to
get it. The effort to obtain the needed |
supply may carry the price of cotton
even considerably beyond present prices. !