The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-12-23
HIGH PRICE COTTON.

1t is singular how some folks will stick
to an opinion once formed, even after
they have mountains of evidence to show
that their opinion is erroneous.
Last summer, when the mills were who'll
~ without cotton and there were only
few hundred thousand bales in the world,
it is true that spectators made a corn
err on the crop and sent the price up.
But they could not have done this if the
demand for cotton had not been greater
than the supply. At that time Mr.. Will
son, Secretary of Agriculture, who was
highly indignant at the spectators, pre-
dicted that the bottom would drop out of
the price of cotton as soon as the tall
crop was marketed. His prediction
would have come true if speculation alone
had increased the price of cotton. The
prices did go down some, but when it
became apparent that the crop was not
large the old law of supply and demand
again began to work, and it's actual oper-
atoms have now brought the price of cot
ton up to more than thirteen cents-the
figure at which the spectators are said
to have put it last summer.
1t is therefore apparent that Mr.. Will
sons promised apology is due. Cotton
is high because there is a great world
wide demand for it and the supply is be-
low expectat ons and needs. But so able
a paper as the New York Times still be-
ieves that the present high prices are due
to speculative manipulation, and it says
such manipulations will operate to para
lyZe many branches of the cotton manu-
featuring industry" and it goes to say:
.Many millions of dollars invested in
mill property and machinery are jeopar-
died by the position of raw cotton, and
the gains of the South in the price of its
staple product are likely to be offset by
the losses on manufacturing account and
the checking of industrial development.
'"That a price for cotton so high as to
check consumption and necessltate gem
eraI reduction of cotton mill wages below
the standard of comfortable living, and in
many instances to close mills and throw
their labor into idleness, is advantageous
to the South at this time, or at any time,
may be questioned. 1t will powerfully
stimulate British efforts to develop com
netting sources of supply, and while eli
matte and other conditions oppose Difficult
ties in the way of the success of such eff
forts, there may be overcome with great
er ease than has been assumed by those
who have believed that this country has
natural monopoly of the worlds cotton
supply. The commercial aspects of the
matter are also worthy of consideration
1t is much easier in existing conditions to
manipulate a speculative advance in cot
ton than to effect and sustain CORES
bonding advance in the price of cotton ia
brics Before the ratio is established the
losses are likely to be very heavy. The
fact that exporters are not looking for
orders at present prices is significant.
There would be reason to give weight to
what the Times says if present prices
were speculative. In truth, present prices
have come in spite of the attempt to keep
down the prices by most of the spinners
and cotton exports in the world. Many
of the best posted cotton manufacturers
refused to buy early in the season be-
cause they were confident cotton would
be as low as nine cents until January.