The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1906-01-24
JORDAN SAYS HOLD FAST.
Consumption Us. Under Production
Conditions Existing in the Cotton
Trade.

The present rate Of consumption Of
American cotton by the mills Of the
world is slightly in excess of one MIL
lion bales Of raw cotton per month.
It is estimated, as result of careful
investigation. that if the spinners can
secure the cotton and no Internation-
al troubles interfere with the present
enormous demand for cotton goods.
fully twelve million, five hundred thou
sand bales Of American cotton would
be consumed between September l.
1906. and Sept. 1st, 1906. This unpre-
cedented 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
spindles within. the past six months
in England, Japan and America Since
July more than four million new spin
dies have been added to the milling in
dustry Of Manchester, England. The
Fall River Mills which were shut down
for sixteen weeks last year on account
of strikes are now running night and
day These vital forces will necessari-
ly demand at least one million bales
of cotton for consumption in 1906,
which were not required in 1905. In
the South new mil1s are being built
and the equipment of old mills
doubled in capacity wherever labor
can be secured.
Consumption is only limited now to
the spindle capacity of the world oper-
ating on full time. Mr.. Ellison, the
English statistician, estimates con-
sumption for the next twelve months
under 100000 bales of American
cotton. But Mr.. Ellison represents
the foreign spinners solely, and it is
a habit with him to under estimate at
the beginning 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 ad-
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 ad
vanced to u cents per pound and ev-
cry available bale Of cotton for sale
at that time was eagerly taken by the
mills, the manufacturers, jobbers and
retailers were loaded with goods
which could not be sold that season.
,fser consumtion Of the 100000
oaie crop Of 1904, we find the mills Of
he world today with no goods on
1and for sale, but from six to eight
months behind with their orders. and
the jobbing trade in equally bad
condition. With the trade now it is
not question Of price, but the serious
problem is the delivery 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 ex-
ceed ten million commercial bales,
hence there must be curtailment by
IL, = ,o;11e boforo pox,+ Copto,,1oa,. cI, o1x.
ing that consumption has gone beyond
the ability of production. At the prices
of cotton goods spinners could have
easily paid the farmers u cents for
every pound OF American cotton grown
this year. If we should be able to
hold back two million bales for Is
cents the spinners would still get the
crop at an average price under y
cents per pound. Eut little cotton re-
mains in the hands of the producers
|and local holders If those who have
cotton will hold it firmly they will
be we'll 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 farmers, Southern
Press and the business interests Of the
South generally. I extend herewith my
best wishes for a prosperous and hap
py new year. Yours truly,
Harvie Jordan,
President Southern Cotton Association