The Savannah morning news., 1904-05-14
THE MANurAcruRERs TO BLAME


According to Mr.. W. C. Heath, pres
ident of the American Cotton Manu-
facturers' Association, which has just
concluded its annual meeting in Wash
ington, d. c., the cotton manufactur-
ers have themselves to blame for the
losses they have suffered in their in
dustry during the past season. In his
annual address Mr.. Heath said that
the cotton manufacturers. instead OF
admitting that there was a short cot
ton crop, and that higher prices for
cotton were legitimate, took the posi-
ton that the high and advancing prices
were due to speculation, and that they
would soon be lower. AS conse-
| quence the jobbers, wholesale dealers
and even retail dealers in cotton prod
ucts refused to pay higher prices for
cotton goods and bought only for I'M
mediate necessities.
| AS a matter of fact the higher prices
| for the raw material were Mt due to
| the manipulation of the spectators,
but TO the fact that the supply wasn't
equal to the demand. If the manufac-
lures had admitted the situation which
they must have seen they would have
purchased cotton as it advanced, in
formed the trade that prices of manu-
featured goods were going to be higher
and the result would have been diff
terent from what it was. The manu-
facturers would have been able to dis
oe ., nd the
season would have been fairly pros
porous. The whole trouble. as far as
the manufactured goods were concern
ed, was that the manufacturers sided
with the bears instead OF the bulls.
Mr.. Heath said that the manufac-
turers realized now that they had made
a mistake. Among the bears were
some of the strongest spectators in
the country, but Notwithstanding their
efforts the prices of cotton pushed
steadily upward through all obstacles.
Mr.. Heath did not mention Mr.. Sully
who was the boldest of the bull spec
ulators, but is it not fact that he
was not a persistent buyer of cotton?
According to the testimony given in
court proceedings in his case, he was
continually forming pools, and was SELL
ing as we'll as buying cotton. He did
not buy and hold cotton. He recog-
nized that there was a short supply
and that prices were going to be high;
hence he bought and when he had
profit he sold out. He let the impress
sion get abroad that he was buying all
the time and holding for skyscraping
prices, but he wasn't doing anything of
the sort.
One thing to which Mr. Heath called
special attention should be remember
ed and that is that the manufacturers
always fight any advance in the price
of cotton. Their aim is to get the
raw material at as low a price as they
can He said. in the course of his
address. that in 1897 the advance to
six cents a pound was fought as hard as
the advance to sixteen this year. Per-
haps the experience of the present sea-
son will teach the manufacturers that
the better plan is to take cotton on
rising market, and put up their prices
in proportion as the prices of raw ma
terial rise. They may say that the
trade wouldn't take their products if
prices were advanced. Mr.. Heath
thinks it would, especially if the man
ufacturers took pains to let the trade
know that the higher prices were based
on good reasons and were likely to re-
main until the supply of raw material
became more abundant.