The Savannah morning news. (Savannah, Ga.) 1900-current, 1900-10-01
tue COTTON SITUATION.


tnfgrs Record
on the 18th instant mlddliug cotton sold
in New York AZ eleven cents per pound.
ana seven and threo-eighths pence IN
Liverpool. being the highest price here
since August 1870 Quotations are now
one-quarter cent lower here aud seven
sixteenths Of penny lower in Liverpool.
but this b. only natural reaction after
the sharp advance since Sept. 81 enc ami
three-eighth cents In New York and one
and three-quarters pence IN Liverpool.
The upward movement In It's pronounced
development was started and kept up in
Liverpool New York simply followed In
the wake OF the greater market The ad-
vance in Liverpool in 50 brief time was
unprecedented. but when al tho circum-
stances are considered II cannot he said
90 have been unwarrantcd The Liverpool
market for cotton futures" WIS largely
oversold and while the actual stock Of
cotton OF grades that could be delivered
upon futures contracts was ridiculousiy
small the light stocks tn this country the
lateness OF the new crop aud the Interrupt
ton 10 shipments by the Galveston storm
prevented any relief from America. "Fu-
lures for the near months advanced first
and most sharply. Then there came
good demand from sp.nnors for actual
cotton. and this demand increased when
10 was fully realized how very little cot
ton there was IN Liverpool such as spin
ners required
The greater part Of the unsod Gotten
was OF grades tower than splnners wished
20 use. and OF very fancy grades OF which
The splnners buy only small quantities at
"A time. English spinners held very small
stocks OF cotton. and when they tried 10
huv they found the warehouses OF the
markets as bare Of desirable cotton as ine
storehouses OF the mills The supply hR-
ing extremely limited and the demand
large from spectators ana spinnets. ihs
advance which occurred was ineVitabie.
on sept. 70 the stock OF American cot
ton In Liverpool was only 10000 bales.
on the goth this insignificant stock was
reduced to l05.oo bales. against 1oo"oe
bales At corresponding date last year
az tbe los 90 bales % American cotton,
,,rchab,v not over 5000 bales OF che grades
desired by splnners could have been Sc
cured. md as the British mills now con-
sumo about 65.0o0 bales OF cotton per week.
there was iess than a weeks supply OF
American cotton In Liverpool aNahanie
for them.
/, h not strange that some Of the Ian
-sehirc mills purpose 40 suspend work
wholly or partially until cotton Is more
plentiful.
Ipaemuch as they can't spin yarns out
Of futures or crop estimates teven u Tor
100000 baics). there was nothing else
to be done. / fully realized TINS situation
when In Liverpool and Manchester sew
eral weeks ago. While the EnEhsn mus
without, cotton will have to suspend work
until they can get It. those having fair
supply viii most probably continue al
work IN spite Of all talk 10 che contrary,
"a Idle mills can't make money.
The 'splnch" for cotton Is more acuiely
f.lt IN England than elsewhere, as ! wrote
last December 60 would be. While the
VISIBLE supply there IS now only one
seventh OF what q was year ago tne
visible supply Of American cotton through
ouf AN Europe and America Is about one
third Of the quantity az this time last
voar. being In round figures 10000 against
e00 90 bales. After several years Of de-
pressian caused by over-protuction OF cot
ION the consumption OF the world has IN
me season lust ended not only overtaken
the production. but 40 trenched upon the
reserves that che visible supply OF an
kinds is now equal 20 only about four
weeks consumption Of the NILS Of Eu-
rome and America. Cotton IL again king.
N heads the list OF our exports and the
wealth which Il has brought and will CON
tlnue 90 bring 10 tho South will also in
crease the prosperity Of every section Of
the country.
In a recently-lssued circular AIR. Henry
Al NeNl OF New Orleans. estimated thar
~, mills OF the world had consumed H.
~ 90 baies of American cotton last sea-
son. Perhaps I may not be able 10 make
I, that much when ] finish investigating
the matter. but as the tendency OF this
een,ieu,on'e mind s. 90 estimate as con-
aervafivelv on the consumption Of cotton
az he estimates literally on its produc-
lion. Il would probably be safe 70 assume
last seasons consumption OF Ameriean
cotton a. u. 0o0e9 10 10000 bales. II
would doubtless have been more hadsthere
heen a larger supply During the season
,heye mas been an addition OF about L.
AN 000 apiudles to the European ana
American mills Mr. NELL thinks the con-
v,tmution OF American cotton during The
new season will h. only 100000 bales.
,,htle he estimates that the American
ron now coming in Will not exceed o.
~ 90 bales. or not enough FOR the worlds
reouirements by al least 2a0oo0 bales.
-rhe consumption Of io.ool.ool bales was
-o,ebed when the splndics were several
y,flfioue less than now n T. undoubtedly
,r,,e mat the troubles IN China. n pro-
t,-,gra will deprive tho world Of her mar
kets. which have recently taken the equiv
.,t,nt ~ about 10000 bales Of cotton per
.,rnrn II Is also true that the end %
tha war IN south Africa nov practically
otert vii soon onen az that territory 20
commerce. and that the assurance now
~ fafr crors Of cereals and cotton IN
trdia vii cause a grcatiy-improved de-
100 for cotton manufactures from that
,.ou,tr,, should the Chinese difficulties
-, satisfacioriIy adjusted Y Is probable
,hat trade with that country would be
,.r,ety Increased. The continent exports
- cotton goods 70 China. and j. unaffect-
20 hy the war there.
.rhe season may really prove 20 be
very active ono for cotton manufactures.
especialiv when q s. remembered that as
= rule. great prosperity has pfeVaiied me
past year throughout europe anu We
f-nits5 states. ana that the same condi-