The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-04-26
RICE, MCCORMICK & CO.'S COTTON LETTER
Situation Seems Stronger Now Than at Any
Time Within the Generation.
Especial to News and Observer

Especial to News and Observer
New York. April 25.-Price, Mccormick
e Co. today published the following cir
cular: We have received from Mr.. Eli
son, the we'll known English statistician,
by cable the following summary of his
circular published today: con the basis
of an American crop of $500 600, plus i'm
ports of S66, 900 Egyptian; 800, 900 Indian,
and $4,000 other growths, the estma-
ted American European port and mill
stock at the end of the season, will be
$50 900 bales. against 2,4S9,000 bales last
year; 2,090. 900 bales in 1898, and $4,000
in 1897. The apparent consumption of
American cotton is short II 100000 bales.
The position of the old crop appears to
be very strong, but dependent to some
extent upon new crop Developments"
The stock in Liverpool at the end of Sep
TENDER is estimated by Mr.. Ellison at
$50 900 bales. which is the smallest on
record so far as we can discover, since
1880. In 1889 the stock at the end of Sep
TENDER in Liverpool was 900 bales,
and cotton sold at 1113 cents.
These figures in view of the fact that
Mr.. Ellison presumably presents the
question, $500 900, which, in our opinion,
cannot possibly be reached, would seem
to be almost impregnable in strength.
Good and conservative statisticianS here
figure that stock in Liverpool, at the end
of the season, will be nearer 800, 900 than
$50 900 bales. Looking into the figures of
visible supply we find that for the four
weeks ending April q the visible supply
has decreased 440, 900 bales in the same
time there has come into sight outside
of the American crop $4,000 bales and
of the other growths about 10000 bales,
making the total absorption of cotton for
the four weeks under consideration of the
$40, 900 bales, or something over 100000
bales per week.
The visible supply on April 21st as made
up by the Financial Chronicle, was g.
63S, 600 bales. Estimating that there is
still to come into sight Of American cot
ton out of this years crop 100000 bales,
against 912, 900 bales last year, we have
a total roughly of 3,343, 900 bales. AS
Stunning a minimum weekly absorption for
the balance of the season, say eighteen
weeks of $780, 900 bales per week, we are
left with a total visible supply of all
growths at the end of August of 443, 900
bales. OF this, Mr.. Ellison estimates
that 100000 bales will be in Liverpool.
There must be some cotton at the con-
tinental ports, so that unless our figures
are all wrong, it would appear that the
visible supply at the end of the season
would be nearly all in Europe, and
America would be practically denuded
of cotton, comparing the figures OF the
indicated visible supply with these of
the past year we find that the nearest
approach to them was in 1889, when the
visible supply at the end of the season
was S34 900 bales. and cotton sold at 1112
cents in 1890; with a visible supply of
1071 900 bales of cotton sold at 12M
cents. Today we have consumption of
II 900 600 bales of American cotton, ac-
corting TO Mr. Ellisons estimate. In
1890 the consumption of American cotton
was only about 100000 bales.
In. view of these figures, and despite
the fact that the prevailing speculative
temper against operators on the New
York Cotton Exchange is TO decry them
as discounted, we cannot but feel that the
situation is a stronger one than the cot
ton trade has seen in almost generation,
and that extreme prices for cotton must
prevail this summer. Wetherefore unrest
tatingly recommend the purchase of the
summer positions, and as planting is I'M
doubtedly late. the season backward and
very large area Of the cotton producing
section overlooked, and under the neces-
sity of replanting. sales of the new crop
positions are, in our opinion, exceeding
ly dangerous. The effect of the small
supply with which we will enter the new
season will continue to be felt until
stocks throughout the world are ma
terially replenished, and whatever the
size of the new crop it will, during the
first 2 or months Of its maturity be IN
eager demand
PRICE, MCCORMICK e co.