The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-11-03
COTTON CHEAP
AT 10 CENTS
FRANK 3. HAYNE, WHO HAS LA
BORED FOR HIGHER PRICES,
THINKS THE SHORT CROP
SHOULD BRING MORE.

Frank B. Hayne, who has labored
| consistently for higher cotton prices
this season, has outlined the reasons
| why he is bullish on the market a.
19 cents, as follows:
When the government bureau re-
port, issued on August 2, showed a
condition of 71.9 per cent, felt con-
WINGED the crop could not possibly
reach 100000 bales, and that cotton
was selling far below its real value.
When the government report, issued
on September 2, showed a condition
of 63.7 per cent, l felt satisfied that
II, 500, 600 bales was the maximum
possible for the crop and at that time
received a telegram from J. \. Wis
ner, of New Orleans, asking w. =.
Brown and myself to telegraph him
in full our views on the situation. Mr..
Brown was absent, so replied to Mr..
Wisner, by telegraph, as follows:
Reasons Set Forth.
We look at the situation as follows
DfscOunting, every favorable condi-
ton that can arise until December I,
the government report indicates Il
maximum crop of 11,250,000. and with
unfavorable conditions might easily
be LOCO, 900 bales less. Consumption
last year 13,1O0,0O00. In spite of short
time in England and continent. With
largest American crop ever produced
the price advanced $50 a bale while
being marketed and the visible sup
ply is far less than two years ago
With a certainty that 100000 Will
really be needed by the country and
that probably less than II, 100000 Will
be grown an eventual advance is
simply unavoidable. Under normal
conditions the market should have
certainly advanced TO thirteen cents
yesterday, but was kept down by the
enormous selling of the bear clique.
These sellers base their action on the
supposed helplessness of the south,
thinking the south will be forced to
sell its cotton at any price the spin
ners are willing to take it at. We
consider that the competition between
Spinners who will certainly require
100000 bales monthly, will take care
of this SO-called distressed cotton. II
the bankers OF the south will help
the farmer TO market his cotton SLOW
ly, we firmly believe it will be worth
fifteen cents in the next sixty days.
The weakness in our opinion of the
bears argument, is that, although the
producer may be foolish enough to be
willing to sell his cotton far below
it's actual value, we hardly think that
the spinner will be foolish enough,
when he fully realizes the facts of the
case, not to start buying freely at
these prices and thus avoid the
scramble for spot cotton that will
surely take place some time during
the season.
The southern farmer has sold at
least 100000 bales cotton on which
he realized probably $3.50, 600, 900. 1t
was very hard to convince the farm
er that twelve cents was not an ex-
IRENE price for his product, but
through the efforts of a few southern
men, they finally realized the fact
that they were sacrificing their cotton
and I believe that at least S50,000,OO0
more has been obtained for the co.,
ton marketed to date than would have
been if it had not been for the e:-
forts Of this small coterie of south
ern men
My prediction on September 8 of
fifteen cents in the next sixty days
has now come true, but at that time l
thought the crop would be from H.,
100000 bales TO II, 800 900 bales. II
now feel confident that the maxi
mum for this crop is 10,750, 600 bales,
the probability is that it will be I'M
der 1O,5O0,000 bales; and there is a
possibility of it's not reaching TO-
600, 900 bales. Under the present con-
ditiOns I now feel that fifteen cents
is as much too cheap for cotton as
twelve and half cents seemed to me
on September 5.
Consumption of Cotton.
give below some figures that may
be interesting regarding consumption
of American cotton:
Total
Consumed. CroO.