The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-01-12
CAUSE OF THE DECLINE.
Results Show 1t to Have Been Tech
nical, Not Fundamental-Resul
of Comprehensive Investigation
Made by a Careful Statistician.

more apparent than real, since the
disturbance incident to the clearing
up Of the future market, which haG
become top heavy, has not had
corresponding effect on the spot sit.
uation. In support of this view Of
the weeks cotton market occur
rences. the statistician of the firm of
Jay, Keplinger and Brown, after
month of careful research has pub
lished an elaborate compilation show
ing the comparative worth Of COM
modities in general, and by a series
of logical deductions draws the con-
clusion that 20 cents a pound for
middling raw cotton would not he a
heroic figure If cost Of production and
shortness of supply be regarded in
its proper relationship to scope of re-
quirement.
Says this careful writer: although
cotton has advanced It's points with
In twelve months there has bean no
serious stoppage of spindles, and con-
sumption continues at the rate of
100000 bales and more q year.
Meanwhile prices of manufactured
goods are gradually being adjusted
to conform with the cost OF the raw
material.
american mills are we'll engaged
with forward contracts, and their
operations thus far will justify the
usual dividends.
I'm spite of the advancing ten
dency of manufactured goods, their
consumption appears to be increas-
ing. A short raw cotton supply will
ultimately necessitate a decrease in
the production Of manufactured
goods, whether consumers so desire
or not.
Compared with wheat at $1.16
per bushel, corn at 66 cents, and
pork at $22, cotton at 20 cents
pound will not appear relatively
high. when it is remembered that the
majority of cotton planters buy their
bread and meat on the basis of these
prices"
According to Professor Burkett,
In his able book on Cotton" one
pound Of cotton at 10 cents will
make:
1 1-2 yds denim worth. :. :. .22
yds Brown sheeting worth. 80 |
4 yds bleached muslin worth. .32
yds calico worth :. >. :. .35 |
6 yds. Gingham worth :. >. ;. AS |
25 yds. handkerchiefs worth >. .2.50
10 yds. lawn worth :. :. :. ..2.50
Sc spools No. 40 sewing thread
wortn .2.SO
1T should cost more to transform
raw material into q manufactured |
product thar to produce the raw ma
terial," says the statistician quoted
above. "but the fact that the
has prospered sufn-
ciently to encourage a much more
rapid expansion in manufacture than
has taken place in the culture of raw
cotton Is proof positive that the net
profits enjoyed by the manufacture
have been relatively greater than the |
net profits enjoyed by the farmer,
a readjustment that
Will result in more equitable divi-
sion seems logical enough.
Fifteen cents for raw cotton has
not checked consumption to an ap-
preciable extent. The true test of a
Just distribution Of an equitable divi-
sion of profit is a maximum price
that will check consumption and a
minimum price that will check pro-
duction. At present prices there is
no danger Of deliberate raw cotton
production curtailment, but since
present prices are not checking con-
sumption they can hardly be called
high"
The cause of the future market de-
cline Of 100 points from the top
could not be traced to free selling of
spots. or to restricted demand for
spots, since the actual cotton market
has refsued to follow the downward
course. Fear on the part Of stock mar
ket interests Of the presidents attitude
on corporation legislation caused the
free selling Of securities, decline
and calls for margins, which in turn
forced some security market longs to
liquidate cotton market interest in
order to secure profits. This in turn
depressed the future cotton market.
Put To, Il