The Savannah morning news., 1903-05-01
TWO VIEWS OF
NAVAL STORES SLUMP
Exporters Insist That the Decline Has Not Been
Unusual

means you may" said Mr.. Williams,
land the price of the product dealt
in will decline, and nothing can pre-
vent 1t. l am not criticsing export
ers because of this decline, for as l see
it from the surface they are simply
taking advantage of changed conditions
to get the products as cheaply as pos
sible, and cannot be blamed. That is
business. There is talk of close
working arrangement between the ex-
porters, but / cannot reply to ques-
lions, since I know nothing about any
understanding that may exist between
Them
Smaller the Demand the Lower the
Price.
Mr. Williams was quite positive that
as this is the basic market, where IS
fixed the price at which the product all
through the turpentine belt shall
change hands, the lesser the demand
here the lower the price may be expect
ed to drop. He regards demand as the
only foundation on which a wholesome
market can rest. Take this away and
it will collapse in proportion to the
strength removed. The worlds con
sumption is as large or larger than
ever before, he urged, but to get the
benefits of this, the operations must
be centered at one or more markets
where consumers agents bid one
against the other for the offerings.
Back several years ago Mr.. Williams
took the position that the turpentine
producer was making mistake in SELL
ing his product in the interior, deliv-
cred to tank cars, for the reason that
the sales were at prices prevailing here
and if the stuff had been shipped here
and the demand supplied here, the
competition created would have result
ed in better prices. While he did not
attempt to name a remedy for present
bearish conditions Mr. Williams was
positive that a change in the methods
of marketing would be beneficial, and
among these he pointed out the neces-
sity for a change that would pit buy
ers against each other in bidding for
the product.
Mr.. Powell of the Consolidated.
Mr.. w. c. Powell, president of the
Consolidated Naval Stores Company,
takes an entirely different view from
Mr.. Williams. He views the situation
with the utmost complacency. and sees
no cause for alarm. There are no
change in conditions that should cause
uneasiness to the producer, he said,
and l do not see that there is any call
for the present agitation.
ut must be remembered that while
the price shows a decline since April
1 of zoe per gallon on spirits, that we
are comparing with a highly manfpu-
lated market at that time" said he.
who thought we We're to get anything
like Csc per gallon for turpefitine? True,
| did not expect the decline to go be-
low soc, but I am now satisfied that
1t is not to extend much lower. I be-
Iieve bottom has been touched, at least
for the present. The market is being
controlled by the natural laws of sup
ply and demand. / do not attribute
the present decline in turpentine to ma
nipulation. 1t was manipulated last
fall; now it is getting back into its
natural trading channel. The price IS
now higher than it was this time last
year. The crop win be about the same
as last year, the foreign and domestic
demand is about the same, and while I
would like to see the price around its
high notch I cannot say that I expect
this in view of present conditions.
My opinion is that the diversion of
receipts, which are going to Florida
ports, is not having any effect what
ever in producing the present de-
cline, said Mr.. Powell '"The lesser
the receipts here the higher the price
YSfll go, according to my belief. The
larger the local supply the lower the
price This is a natural law"
In this connection 1t may be said
that the demand at times lately was
Claimed to have exceeded the supply
locally. for in some cases exporters
went to other ports to get turpentine
with which TO load steamers in port.
A majority of factors claim that the
savannah market has not this sea-
son been sufficiently supplied with
naval stores to keep trading upon
| lively scale.
1t Is said that direct consiennents
| may be made upon a larger scale
soon, judging from the tenor of cor
respondence from some quarters. There
is saving of freights by ship
ping in Florida to Florida ports
With the market maintained this
would work wen for the pro
ducers But il the diversions are
| to have the effect of lowering the
the. past month the saving in freight
will be bagatelle compared to the
loss in price. The producer is re-
fleeing.