The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-08-27
Spirit of the Press.
Conversion of IA Cotton Bear.
The Manufacturers Record.

The Manufacturers Record.
For two or three years the Manu-
facturers' Record, with other students
of the cotton situation, has argued
that the higher range in the price of
the staple was inevitable from certain
economic conditions. An opponent of
that view has been Mr.. Theodore Fl.
Price, of New York. In the past fort
night, however, Mr.. Price has been
converted from his radical opposition
and makes confession in a letter from
New York dated August 13. He says
that for two years he has been a per-
Sstent and consistent opponent of
what he regarded as the ulcommeT-
cial speculation in cotton" but eX-
perience has taught him two or three
things that he hal not previously
been disposed to admit. He recognizes
at last that 1.-The worlds demand for
cotton goods admits of more elasticity
of price for the raw material than |
had been disposed previously to think
possible" He could not believe that
it would be practicable ito force into
consumption so large a proportion of
the crop at u cents and over as was
done in 1902-1903 and in 1903-1904."
He finds "some occult or subtle i'm
uence making for q relative restriction
of the American crop in its yield per
acre" He suggests in explanation less
skilled labor less cultivation, INSULT
cheney of labor, gradual exhaustion
of the land, and even "Sully'S theory
of seed Impairment He is con-
WINGED, moreover, that the increase IN
the worlds production of gold and a
corresponding decrease in the cost of
its production, bringing it about that
.rl ounce of gold will buy less cotton
or wheat than it did 20 years ago, has
not been without effect in making
prices for cotton, which he had pre-
viously regarded as preposterous.
'speculatively possible during the past
two or three years.
These economic factors having at
last become recognizable by Mr.. Price,
his mind is prepared to appreciate
fully the significance of other facts
and tendencies. He finds that the
world is absolutely bare of cotton;
that at nine and one-half cents for
cotton there will be no limit to the
demand for it in the next three or
four months, and that inasmuch as
the article has reached its intrinsic
value, whatever the size of the crop,
there can be no accumulation of sur
plus stock within the next 80 days.
He is inclined, moreover. to think that
the promise of the crop has been over,
estimated, and is even now deterlorat-
ing, and he suggests the Indicated
crop on September 3 of 11,0OO,O 600
bales. He therefore believes that the
spinner, having learned during the
past few years that prOcrastinatlon IS
not a profitable policy, will buy
promptly, so that with the world as
bare as it is at present an 11,O00,0O0-
bale crop will pass into consumption
at an average price of 10 cents or
perhaps higher in the South. 10 TINS
situation Mr.. Price adds depletion
of the Spinners stock of raw material
beyond precendent, a reduction In the
worlds supply of goods to greater
edgree probably than since the civil
war, and the impending close OF nos
tilities between Russia and japan
creating an enormous demand Tor cot
ton goods in China and adjacent parts.
Mr.. Price might have added lhat
the duties of the Secretary OF Agrlcul-
ture campaigning in New England TO
the end, perhaps, that he may couh-
teract sentiments growing out OF
spinners' procrastination IN following
him last year will hardly ma tlilie
to issue a bear interview this season
Surely the outlook for the nllllloils
of cotton growers in the South ana
the millions of others dependellt upon
them directly and indirectly is apou.
as bright as it has been III hlty yedis