The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-01

the oOutn VINO now nOId cotton are
confronted with the fact that the
yield of the present crop has been
more than the worlds requirements
of American cotton for this season.
The price is now somewhat less than
one-half of the quotations of year
ago.
When there is an oversupply of any
commodity and a serious decline in
price from that cause, the first sugges-
ton of common sense is to curtail
the production and thereby reduce the
supply to the proportion of the de-
mand and thus restore the price to an
equitable basis. This simple plan has
always succeeded with cotton.
Mr.. John l.. McLaurin, formerly a
Senator from South Carolina, in a let
ter in the New York Sun of 18th in
slant, scouts the idea of a reduction
OF acreage and urges that the grant
ing of susidies to United States vessels
would, in some way, so vastly in
crease our exports of cotton goods
that the resulting greater demand for
the raw material would take at full
prices all the cotton our country
could produce. He tells us that trade
follows the flag" and says great OPP
pOrtunity is open to us in the intro
duction of our cotton goods INTO
China and that "a market is waiting
there which will enable us to sell 20
600, 900 instead of 10, 100000 bales Of
cotton above ten cents per pound, as
it should not be difficult to teach ii
thrifty people the advantage of cot
ton goods.
AS a matter of fact, cotton cloth
was manufactured in China as early
as A. d. 1860 from cotton grown in
that country and is now the only
clothing for all seasons of the year OF
the great majority of the Chinese
population. Cotton cloth was not
made in the United States until more
than 500 years later. In the year
ending June so, 1903, more than one
hat of our exports of cotton cloth
were 10 China, and in the previous
year the quantity was over three
fifths. Our exports to China are
principally of coarse, unbleached
cotton cloth. of which the chief ele-
ment of cost is the cotton itself.
Mr.. McLaurin says that the OBJ
stacle to trade with China is lack of
transportation" and high fTeightss
There are actually greater shipping
facilities between the United states
and China and lower rates or frelSnt
than ever before. There are now pro-
badly more vessels, and certainly a
greater carrying capacity, Tor tne
worlds commerce than at any Prev
Gus Time. ocean AIeiSiitS e'iS SA~Se"
ingly low and far below the rates of
few years ago.
THE flag or the nationality of the
vessel has nothing whatever to DO
with the selling of commodities any
where. The only factors in the mat
ter are the suitability of the articles
and the reasonableness of the prices
demanded. II the commodities 90
not suit the markets in which they
are offered they cannot be sold to any
extent even at a very low price. Our
commodities cannot be sold in foreign
markets for any more than similar
articles from other countries.
Our flag has entered the Philip
pines and is now the flag of that coun-
try. but trade has followed it at so
slow a pace that during the last fiscal
year the imports of cotton goods from
the United States were only IL per
cent. Of the total quantity, while
Great Britain furnished rs per cent,
Spain Is per cent, and little SwitZer-
land IA per cent.
The chief obstacle to the increase of
our exports of cotton manufactures IS
the high tariff on textile machinery
and on the chemicals, dyes, etc, used
IN the manufacture OF hleached, dyed
and printed goods. On account OF
these tariff taxes, the equipment of
cent. more than in England, and the
cost of the manufactured product is
so greatly increased that We cannot
successfully compete with European
mills anywhere outside of the protec-
ton walls surrounding our own coun-
try.
Our cotton mills. if worked to their
fun capacity, would produce vastly
more goods than could be used In the
Il G
foreign trade is greatly needed 10
take the surplus production.
During the past season the world
spinners consumed only 100000
bales of American cotton owing 10
the high price and limited supply,
while 100000 bales We're consumed
in the season of 1S99-1900, when the
number of spindles was 7,35O,0O0
Less.
a cablegram on the goth instant
from Messrs. Ell ison & Co, of Liver
pool, estimates the worlds consump-
ton OF American cotton this season at
1921 bales and says that Eu-
ropean mills may take 100000 to AGO.
600 more to add to their stocks.
1t may he safely assumed that the
worlds mills will consume fully H.
$4,000 bales of American cotton.
Should they buy an average of only
IOuE NSGhS supply wy 1AASAA ~
tual requirements, it would make
their entire purchases for the season
about 12.220000 bales.
If our Commercial crop should be
as much as 100000 bales more than
this, the addition to the stocks in
American and European markets
should not unfavorably affect prices.
[ think cotton Is too low, and that
the great decline has been largely due
to speculative influences. Surely the
spinners did not expect so great de-
cline or they would not have bought
SO freely earlier in the season when
prices were several cents per pound
dearer. An advance of a cent and
half per pound would undoubtedly
promote the interests of a majority OF
the spinnerS as it would cause
steadier market and larger demand
for cotton goods. At the advance
there would be a better demand for
cotton for spinning and for invest
ment than there is today.
The course of the market Tor the
next few months rests entirely with
the present holders Of cotton in the
South. II they will market it slowly
and only as they actually require the
money from its sale, it is likely
reaction 20 better prices would occur.
af f1Iltxy A0n 600