The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-02
HIGH PRICE OF COTTON.
Price, Mccormick & Co.'S Cotton Let
ter---Advice to the South.

New York, February 1.-The cot
ton market this evening closes at the
highest prices of the year, and IN Fact
the highest prices Of several years. AS
compared with the figures current a week
ago it is about 30 points higher FOR
March contracts and Al points higher fo1
November contracts, while the inter:
mediate months have appreciated IN rela-
tive rates to the distance of their ma.
turity. The advance is simply recogni
ton of the strength Of the statistical
situation as it has latterly developed
On the Doth of January we
recognized that the liquidation in
the cotton market was about
over and telegraphed our various
correspondents throughout the county
sending in this connection over 6,OOC
kilograms as follows: Don't advise
further sales of cotton. Remnant Of crop
unmarketed should command higher
prices during the summer" March con-
tracts on January 29th closed at 7.oS
August contracts at 1856. On the IND
of January, when we advised our friends
to accept prices then current for cotton,
March contracts were 1852, and August
contracts $50. Meantime during the
month of January a decline of nearly Az
points had interviewed, so that those who
chose to follow our advice have had am
pie opportunity not only to sell and pur-
chase at a profit, but if they did so,
they escaped a month of impatient wait
ing for higher prices. We mention this,
not in any spirit of egotism, but becauss
some of our critics have seemed to as
sumo that our sense of self Importance
had become so magnified that we were
foolish enough to believe that our mere
expression of opinion could in amy way
seriously affect or long, defer the logic
of events. The month of January has,
however, as we anticipated it would be,
been month Of liquidation in the cot
ton market, and that liquidation has not
been without its healthful effect. The
market is now free from the menace of
a distended speculation, and it is obvious
that the cotton world is face to face
with a very extraordinary situation. That
our friends may fully appreciate it we
would call their careful attention to the
following figures:
The net amount of crop in sight for
the week ending January Goth, accord
ing to the Financial Chronicle, was 6 :
5IS,S19 bales, assuming that the crop
movement from now until the first of
September shall equal that of last year,
we would receive from the 26th of JAM
uary until the first of September about
100000 bales, indicating a total crop
of 9,07S,000 bales. There are few, how
ever, who believe that from now until
the 1st of September. the crop movement
will equal that Of last year. We our
selves think it safe to figure upon a fall
ing off of at least 10 per cent. which
would give us an indicated crop of
S,450,OOO bales, which crop estimate we
published in November and have never
modified.
The visible supply of American cotton
on the 26th of January, according to the
Financial Chronicle, was 3,4O2,112 bales,
estimating as above that there is yet to
come in sight out of this years crop of
American cotton 2,250,O00 bales. We
have a total supply of American cotton,
probably visible on the LIST of September
of 1852 712 bales. The most careful es-
Inmates which we have been able to OBJ.
tain of the worlds weekly consumption
of American cotton have led us to the
opinion that its minimum, at the present
ldlc VI consumption ID >IC,OOO Ddite
weekly.
There are from the 26th Of January
to the list of September, say thirty
weeks. Total consumption for the bal
ance Of the cotton year 215,00O bales
weekly for 80 weeks; 6,450,000 bales
visible supply as above; 5,652.712 bales,
net apparent deficiency 797 2SS bales, to
which must be added such deficiency as
may be developed from the normal in
the Egyptian and East Indian crops.
Such prospective situation is, we think
that we are justified in saying, almost
without precedent, and the fact that du-
ring the present season holders of cotton
have pursued policy of conservatism III
marketing the bulk Of the crop at fair
price has avoided any check to consump-