Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1909-09-29
Indications for High Cotton.
columbia State, 24th.)

The time seems ripe for another
boom in cotton. and it would not
surprise us If those conscientious
souls who have held cotton for four
years because of all oath they would
not sell for less than fifteen cents
a pound, will be able to keep the
faith and also get old stock off their
hands before this season is grown
old.
Cotton is now selling in favored
places in South Carolina for 13 cents
pound, or $G5 bale. That Is a
good price, but If reports of shortage
throughout the belt are true, it Is
not high; indeed an advance would
be warranted. Under the decree of
the law of supply and demand, If the
demand for a thirteen-and-half mil
lion bale crop is such as to enable
producers to sell for eleven cents,
that demand for an eIeven-million
bale crop would sustain a price of
fourteen or fifteen cents a pound;
most certainly will the price go to
fifteen cents if, in addition to the
short crop, a strong combine forms
pool, and bulls the market.
Ten weeks ago the State predicted
thirteen cents, and said that future
developments would determine whe-
ther 1t would go higher. At that
time our calculations We're made
upon basis cf twelve-million bale
yield. The thirteen-cent level is now
reached, but the estimate OF yield, on
the September crop report, Is CON
siderably below twelve million bales.
Another, and important factor for
continued upward movement of
prices, with perhaps a sensational
climax, is the fact that James A.
Patten, who several months ago sue
cessfully corn cred the wheat market,
making us ny considerably more
for flour, and, incidentally raking off
bunch of millions in profits, has
gone to New York and announces
himself as IA cotton bull. Indeed
Patten is reputed to be in charge of
pool. in which Frank B. Hayne
and William p. Brown, of New Or
leans, who made the killing" with
Dan Sully. on the lasi occasion of
"15-cent cotton" are his associates,
with several other strong men. This
pool is reported to hold one million
bales.
Patten denies this move is specu-
lative. He says the increased demand
FOR cotton, arising from several
causes-one being the use of 35O,-
600 bales a year in the manufacture
OF automobile tires-must force the
price of small crop far above pres
ent levels. 'Cotton," said Patten,
sells on its merits, and the annual
consumption of cotton increases,
Just as the annual consumption of
wheat and other products increases,
and with crop below the average
prices are bound to go up"
Unfortunately for the Southern
manufacturer Of coarser goods, the
price of cotton affects him to a
greater degree than it does other
manufacturers. An advance of five
cents pound is of little consequence
to the manufacturers Of goods SELL
ing for two dollars a pound, but It is
exceedingly grave for the manufac-
turer of materials that fetch thirty
cents pound. During the interim,
until readjustment of cloth prices
to new conditions, the mills suffer.
And tb readjustment is often de-
layed b, ,ause buyers and consumers
resist the advance, momentariIy eX-
pecting break in the raw material
market
The State is neither estimating tho
size OF the cotton crop, nor predict
ing sensational advance, but we saw
that conditions as now revealed war
rant such an increase in price, and
II the October reports are as bullish
as those for September, fifteen-cent
cotton-or higher-may be reason
aDly expected. The logic of the
present situation is for high cotton.