The Union times. [volume] (Union, S.C.) 1894-1918, 1906-01-12
ClkSUMF 1IOy vs.. UKDER-PROrUCTION.
Al lnteIe.tin1 Letter From President
HdIvle Jordan.

The present rate of consumption
of American cotton hy the mills of
the world is slightly in excess of one !,
million bales of raw cotton per
month. 1t is estimated, as q re-
suit of careful investigation, that if
the spinners can secure the cotton
and no International troubles inter
fcre with the present enormous de-
mand for cotton goods, fully twelve
million five hundred thousand bales !
of American cotton would bc. con-
sumcd between September 1st, 1905,
and September 1st, 1906. This
unprecedented consumption of
American cotton is due principally
to two causes: namely:
The increasing demand for cotton
goods by the jobbing and retail
trade of the civilized nations Of the
world, and the abnormal increase
of new spindlcs within the past six
months in England, Japan and
America. Since July more than
four million new spindl-s have been
added to the milling industry of
Manchester, England. The Fall
River Mills which were shut down
for sixteen weeks last year on ac-
count of strikes re now running
night and day. These vital forces
will necessarily demand at least
one million bales of cotton for con-
sumption in 1906, which were not
It quirrd in 1905. In the South
new mills arc being built and the
equipment Of old mills doubled in
capacity wherever labor can be Sc
cured.
Consumption is only limited now
to the spindle capacity of the world
operating on full time. Mr.. Eli
son, the English statistician, csti-
mates consumption for the next
twelve months under $4,000, 900
bales of American cotton. But Mr..
Ellison represents the foreign spin
ncrs solely, and it is habit with
him to under estimate at the be-
ginning of each year and later on
be forced to increase his figures in
the face of bare facts. The price
of cotton goods is very high and adj
vancing in most lines monthly. In
some cases prices are higher than
they have been in twenty five years.
In the spring of 1904 when cotton
advanced to II cents per pound
and every available bale of cotton
for sale at that time was, eagerly
ia5adSd with t goods 5is'1 v7ttA Ssm9faS a S,
he sold that season. After con-
sumption of the 100000 bale
crop of 1904, we find the mills of
the world today with no goods on
hand for sale, but from six to eight
months behind with their orders,
and the jnhhing trade in equally a
bad condition. With the trade
now 1t IS not Il question of price,
but the serious problem is the de-
livery OF orders by the mills. The
shelves OF the world are largely bare
of cotton goods and in many lines
absolute exhaustion has taken place.
This crop will not exceed ten mil
lion commercial bales, hence there
must be curtailment' by the mills
before next September, showing
that consumption has gone beyond
the ability of production. At the
prices OF cotton goods spinners
could have easily paid the farmers
II cents for every pound of Ameri-
can cotton grown this year. If we
should be able to hold back two
million bales for Is cents the spin
ncrs would still get the crop at an
average price under II cents per
pound. But little cotton remains
IN the hands of the producers and
local holders. If those who have
cotton will hold it firmly they will
be well rewarded later on when the
whole world realizes the shortness
OF the crop and the market responds
to the actual conditions brought
about by the legitimate laws of
supply and demand. To the farm |
crs, Southern Press and the busi-
ness interests OF the South generally.
! extend herewith my lest wishes
for a happy and prosperous new
year. Yours truly.