The Brandon news. (Brandon, Miss.) 1892-1961, 1906-01-11
CONSUMPTION VS.. PRO.
DUCTION.


DUCTION.
The present rate of consumption Of
American cotton by the mills of the
world is slightly in excess of one
million of bales of raw cotton per
month. 1t is estimated, as a result
of careful investigation, that if the
spinners can secure the cotton and no
international troubles interfere with
the present enoI nous demand for cot
ton goods, fully twelve million five
hundred thousand bales of American
cotton would be consumed between
Sept. 1, 1905 and Sept. 1, 1906. This
unprecedented consumption of Ameri.
can 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
spindles have been added to the mill
ing industry 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 necessarily demand at least one
million bales of cotton for consump-
tion in 1906, which were not required
in 1905. In the south new mills 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 OPP
Grating on full time. Mr.. Ellison.
the English statistician. estimates
consumption for the next twelve
months under 100000 bales of
American cotton. But Mr.. Ellison
represents the foreign spinners solely,
and it is habit with him to under
estimate at the beginning OF each year
and later on be forced to increase his
ASoAO0 ILL UllO 1dCO VI Un1O 4dOCos AO
price of cotton goods is very high and
advancing 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 II cents per pound and every
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. After
consumption of the $4,000, 900 bale
crop of 1904, we fiud the mills of the
world today with no goods on hand
for sale, cut from six to eight months
behind with their orders, and the
jobbing trade in equally bad condi-
tion. With the trade now it is not a
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-
coed ten million commercial bales,
hence there must be curtailment by
the mills before next September, show
ing that consumption has gone beyond
the ability of production. At the
prices of cotton goods spinners could
have easily paid the farmers IL cents
for every pound of American cotton
grown this year. If we should be.
able 60 hold back two million bales
for Is cents the spinners would still
get the crop at an average rrice un-
der 10 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 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 far
mers, southern press and the business
interests of the south generally, ex-
tend herewith my best wishes for a
happy and prosperous new year.
Yours truly,
HARVIE JORDAN,
President Southern Cotton Association.