The Montgomery advertiser., 1904-12-17
wen Bros Crep Letter.

Montgomery. Ala, Dec fe.
 Dear Sirs-A marked change has come over the cotton situation in the South since the first of December. The estimate of The Times-Democrat and the subsequent estimate of the Bureau report, and the perpendIcular drop, have upset normal conditions. The heavy decline coming 60 suddenly acted some- interested in the cotton industry in sthe South. disorganizing trade of every de- ] scription, at the same time destroying | all parity between the interior cotton markets and the contract markets.
 Our people are not accustomed as ye, | to selling cotton. at to [ 1-2 cents
 The uuanimity of planters to withhold
 their. cotton Is something remarkable and in consequence, receipts from plan | tations have been the smallest for the 1 first half of December we have ever
 known. Merchants who are holding
 cotton are dtsposing of 1t very slowly
 This urgent demand has been furnish ed by December spot shorts. Many oi them are short of the market. and many of them have their sales hedged. The ton has taken place and today we find | the interior paying7 . 1-2c. for middling while January in New York Is 7.6S tc TO, @d is 7.57 to 7.60 in New Orleans with offerings even at this parity very
 The logical conclusion is that the
 South of today is in an entirely differ ent condition from what 1t was six or eight years ago: Fortunately. G.. full prices; the planters with some Jew exceptions who were indebted to stht merchant and banker, have liquidated their obligations. This Is particuiarly the case with the small and medium. sized farmers: therefore, with a full corn crop secure for next years farm ing operations. and with cotton on hand which he finds a surplus, he feels
 quite Independent and Is in shape to control the balance of his crop as he pIeases.
 The merchant who holds cotton is not quite as independent as the planter and while he still has soma obligations he has not only had a good trade but has also had good collections. and for the time being he Is indifferent as to parting with cotton that cost him 1-2c to 2c. more than present prices; and already the advancing merchant is in augurating retrenohment. We hear of
 many of them cancelling or trying to cancel orders given for fertilizers for next season's use; the carload importa- tions of mules, which at this season of the year. under ordinary conditions are quite common, are noticeable now by their absence.
 Many of the best informed merchants and planters have in various ways crit icised the Agricultural Bureau report. While they do not deny that this Is a large crop. yet they assume that 1t is an overestimate. and that the estimate points to 202 pounds of lint cotton per acre. They furthermore contend that under normal conditions the consump- ton will be 1l.000.000 bales, and should spinners buy 1-2 months more sup ply than their actual consumption, 1t will take twelve to twelve and a quar- ter millions. Consequently the surplus from this crop would not be unwieldy or burdensome. Already they point to the probability of considerable curtail- ment in next years acreage.
 Harvesting was practically finished the first part of December. For large crop, 1t was the earliest gathered of any crop we have ever known.
 Very truly yours.
 Well Brothers.