The Savannah morning news., 1901-02-03
NAVAL STORES CROP
LARGE YIELD FOR THE SEASON
NEARING ITS CLOSE.
SUPPLY EXCEEDS THE DEMAND
PRESENT LOW PRICD OF SPIRITS
LAID TO THE OUTPUT.

With a View to Lessening Next Sea-
sons Crop Factors Have Curtailed
Their Usual Advances to Opera
tors-Few New Lands to BE Guilt
vated-NO May-AuguSt Futures Sold
80 Far-LOcaI Trade Exchanges
Chased as a Tribute of Respect to
queen Victoria.
That there is wide difference between
the supply and demand in the naval stores
trade has been demonstrated pretty thor
oughly of late, though the fact that the
production is close upon the heels of the
demand has been known for some time
mast. The receipts for the week just
closed. which were 1893 casks, against no
last year, are about in proportion to what
the increase over last year has been for
several weeks, and show that the produc-
ton for the season nearing its close may
run far in excess of the most conservative
estimates. Since April the receipts have
I,een S3l, 1857 casks, against S04, S4S for the
corresponding period last year. 1t will be
seen that if the present ratio of increase
holds out the crop will break all records.
As previously stated from time to time,
the abnormal conditions which prevail
nave so far revolutionized the trade, in
a sense, with the effect that the depres-
sion incident to an oversupply is being felt
by downward movement of prices. Only
a moderate demand prevailed last week,
and aside from the scarcity of orders,
BUYERS believed LIBERAL receipts would car
~ the price lower and consequently We're
inclined to remain out in the hope of get
ting in on a lower basis.
A matter of interest to the trade at
present is the near approach of the new
season without the sale of a cask so far
for next seasons delivery. Ordinarily
buyers have contracted for much of their
supplies by this time, but owing to the
prevalent conditions factors and buyers
we're too much at variance on prices to
enable them to contract for futures. Buy
ers were bidding about 3412 cents for
May-August deliveries, whereas factors
got from 40 to 44c for these deliveries last
season, and would not therefore consid-
er the execution of contracts on this ba-
sis. The result is that the predictions OF
some weeks ago that buyers will be in
the open market for the entire of their
next seasons supplies seems more than
probable, which promises by putting the
market on a higher competitive basis
than ever before to keep it in a state of
activity throughout the May-August sea-
son. The effect of this postponement
leaves the operator in the position of be-
ing less able than he has been hereto
fore of making calculations for the rea-
son that he does not know as previously
what price he is to receive for large
per cent. of his output, and must there
fore gauge his operations in a sort of
speculative way.
The unfavorable effect of the tendency
40 over-production was generally recog-
nized by factors when advances for the
new bOX-cutting season were being called
for. 1t was tacitly agreed that operators
were to be curtailed in their operations,
and that few new boxes were to be cut
and no new lands cultivated next sea-
son. SO far as can be learned this policy
has been rigidly followed out by factors
with the result that the output next sea-
son promises to be more in proportion to
the worlds consumption. In view of the
conditions prevailing under the present
disparity of supply and demand it would
doubtless be interesting to know what the
conditions would be had not the floods
of last spring devastated a large portion
of the pine belt in that section which
is largely responsible for the present in
crease and destroyed immense quantities
of the crude product. Were the crop in
proportion 10 the preparations made for
1t the output would have been so large
as to exert very depressing effect on
values.
Mr.. J. A. G. Carson, vice president of
the j. 2. Williams Company, does not
hold the Savannah district responsible for
this seasons increase in production. He
claims that while Savannah shows an in
crease of about 10 per cent. over last year,
the Gulf ports show no less than % per
cent. increase, due to the large amount
of virgin lands put under cultivation in
Florida and South Georgia, Alabama and
mississippi. Mr.. Carson attributes the
present condition of the market to the
excess of production above requirements.
Last seasons prices ranging from 50 to
% CENTS were misleading to many of the
trade, who encouraged preparations for
big crop, believing that those prices would
again obtain. 1t is no less true now than
1t ever was that values are governed by
the law of supply and demand, and Mr..
Carson is glad this has been generally
recognized by the trade in their deter
mination TO cut down the next crop SO
that it will be more in keeping with con-
sumption.