The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1903-07-27
PROSPECTIVE CONDITIONS
OF THE COTTON MARKET

~ HE textile industry in all Of its
branches Is in a state Of uncertain,
ty and unproftableness. and how
much longer it will remain so is prob
lematical. There is nothing tangible in
view to change this condition of trade
depression, and were it not for the fear
of detrimentally disturbing the factory
organization many manufacturing estab-
lishments would find 1t to their advan-
tage to stop their entire machinery till
the market values of their commodities
were more in harmony with the cost of
their production. This applies with par
ticular force to both cotton and wool
manufactures, each OF which is contend
Ing with a. scarcity and high price Of the
raw material, with no prospective i'm
provement. If much longer continued
there must be a general closing Of mills
to avoid bankruptcy. The price Of the
raw material, if not of labor, must go
down or that of the manufactured prod
uct go up. The latter is not probable to
any material extent. If at all. under pres
ent trade conditions. Stoppage, then. is
seemingly the only feasible recourse till
a readjustment is effected between cost
of production and selling price, and this
!
stances than there is any public record
of. Curtailment in some form Is i'm
perative.
In cotton manufacturing the world over
there is absolute scarcity of the raw
material which affects the industry in
this country as potently as that i'll for
eign countries. There is a need of d pro-
duction of, at least. 100000 bales. or
100000 900 pounds, more of cotton to meet
the ordinary wants of the spindes of the
world There are none too many cotton
spindles to satisfy the requirements of the
inhabitants of the earth. There is a
constantly growing demand for cotton
goods which are being turned to a lnul-
tiplicity of uses more than ever before.
The European manufacturers have every
incentive TO encourage, as they are now
doing. the increased cultivation of cotton
in Africa and elsewhere. The southern
stat9 of the United States are NOT rails
ing Enough cotton to supply the wants of
.he/world in addition TO what is being
raGed elsewhere; and the current season,
rs well as those before, is seeing short
age that is demoralizing the industry here
and abroad.
The great advance in the price Of cot
ton this year has not been wholly specuia-
live. due to trade manipulations. but
very largely natural and legitimate. The
supply has been far behind the demand,
with no present promise of an improve
ment during the approaching season 10
be derived from the growing crop. lndi-
cations now point to a less sufficient sup
ply for 1903-1904 than for 1902-1So3. which
gives to the manufacturing situation an
uncertainty that is uncomfortable, If not
alarming. There should be an American
cotton crop of 100000 bales. and the
industry should find no trouble in conSum-
ing this amount at a fair price to the
planter. al cents pound for the
mddling grade on the New York market
Till this price, or one not exceeding y
cents a pound, is reached. the promise af
satisfactory profit in cotton manufac-
turing is slim. At the present price Of
cotton goods their manufacture is UNI
profitable with the raw material al any
thing over 8 cents pound. with the
price at more than cents ABOVE this. as
it is now, it can easily be seen where this
disparity will carry the industry unless
It is socn reconciled to a more consistent
equilibrium.
The cotton mills in the northern states
are in much better shape. so far as the
cost of their raw material is concerned,
than those in the southern states. In the
aggregate their takings for the season
have been on more than parity with
their ordinary consumption, leaving less
than 20,000 bales to be needed before the
advent of the new crop in September IN
order to keep the spindes employed
should this be thought advisable. With
the present tendency. however, toward
curtailment of consumption, the northern
mills, as ii whole, have apparently enough
cotton to carry them fairly well into the
Eext season before they will feel the
necessity of buying in large quantities, at
which time a decline III prices may be
naturally expected. There seems to be
no question, however that whatever diVI-
dends these mills may earn this season
will be from the cotton purchased at
cents or under, basis middling, or prior
to February /. 1868 Fortunately. two
thirds of the annual consumption was
purchased before this time and below
cents a pound. Bat these purchases have
not been equally distributed among tie
mills and not a few of the latter have
been forced to secure their cotton at
prices that preclude any idea of profit for
their yearly product.
Southern cotton mills as a whole, will
make a poorer showing for the season
than their northern competitors Not