The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-11-05
Cotton Yarns.
american Wool and c

american Wool and Cotton Reporter)
The cotton yarn situation shows
slight indications of clearing and until
the raw material basis is considerably
lower han it is at the present time.
conditions promise to be very unset
tied. First, the manufacturers have
not the courage to go ahead and buy
freely of yarns even If their orders
seem 70 warrant such a course, as pur-
chasing of any considerable amount
of stock on a weak and falling market
carries no encouragement, even if
prices are low enough to insure a fair
profit.
In addition to the lack of courage
to buy freely, there is the absolute
knowledge that the price of raw ma
terial is obnormally high and an al
most absolute certainty that the price
Will be materially reduced at no dis
tant date. Furthermore, the money
situation is serious, insomuch that
rates for loans are close to ~prohibitive,
and taking all features into c~onsidera-
ton, there is no incentive to push
ahead. Instead of buying along as the
market lowers, and thus emf up
for the high-priced yarns on hand or
coming onward on contract. not d few
Ieayers and knitters are trying to sell
: out at the best price ~Obtainable, or are
making frantic attempts to cancel APP
| preaching deliveries, and throw the
yarns back on the dealers and the
spinners. which is a most ~reprehen-
sible practice unless some reasonable
defect in the yarn is found.
The situation is complicated By the
presence Of old yarns in stock "a. Bos-
ton. New York and Philadelphia, which
are not alone responsible for the pres
ent d~isordered state of the market, but
which will be d menace for the future
until they are all cleaned up. When
the new crop cotton IS IN tree use:
there will De three distinct grades of
the same count of yarn, and at least
two prices. First, we Will have he
old crop yarns, which, on account of
the poor quality of the cotton, will be
in the weakest demand by
hut which will be pushed forward by
holders on account of the loss that lies
in them on account of their purchase
aft high prices. Then there will be the
warns made UP of part ole cotton
which is in spinnerS' hands and part
new cotton, and these yarns will be a
little better than the stocks made up
from the old crop cotton. Finally
there will be the new crop yaIas and
this latter class Will be all the
,ueavers and knitterS Will be looking
for. and they will be worth a cent or
two a pound more tina any other
grade offered.
There car De no question of the ne
cessity for a readjustment OF the cot
ton yarn market, ana me newcastle
beginning is at the raw material end,
where false values nave been main
famed for two months or more. inns
readiustment would have followed IN
tba course of events without any re-
markable disturbance, but for the
snecuIative warns on hand, bought at
fancy prices. These stocks forced a
change wrong end to, ana orousht
about a price cutting that mas remove
ali uniformity in price, and trading Is
now carried on without regard Tor a
nrice scale, the only thought of the
seller being to rid himself OF his loau.
In normal times this state OF dAians
a,ld he IF short Duration, as the
ms offered are unusually attrac-
tive and ownership of the STOCKS
uo,,ld have been promptly changed IT
general manufacturing
BuI~ -