The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-01-25
ECONOMIC STATUS OF COTTON
Arthur R. Marsh, vice-President OF the New York Exchange, Ana
ives the Remarkable Record of the Market Year.

figures began to appear of the worlds
consumption Of all kinds of cotton
during the year from September 1,
1907, to August 81, 1908. AS gathered
together by the United States census
bureau (Bulletin 90 these figures
showed that for that year the worlds
consumption of American cotton was
$500, coo bales of 500 pounds each
net weight, and Of all kinds of cotton
was 1S,S55,00O bales, while the sea-
/ sons crop of American cotton was
only about IL, 000, 900 bales of 500
pounds net weight and the total crop
OF all cotton growing countries only
16,512,00O bales. In other words.
despite the panic and all the disioca-
tons and establishments and c~urtail-
ments compelled by it, the world had
consumed in the year 1907-08 the
large quantity Of 12.240,000 bales Of
all kinds of cotton-1, 500, 600 bales of
American cotton more than 1t had
raised, and had been Obliged to draw
upon its accumulated reserve supplies
TO this extent.
First New Crop Trading.
The first trading in cotton for de-
livery on contracts in New York for
the crop of 1908-10 had taken place
on November 16, 1908, when October
5000 contracts were bought and
sold at 8 35-100 cents per pound. on
January 4, 1909. the first business day
of the year, October contracts brought
8 "a cents per pound; by anuar
% they had risen to about 9 IL cents
per pound. AT this level they re-
manned until near the middle of April,
the world waiting to see whether the
weather might not improve or the
acreage be largely enough increased
to diSpel alarm. But early in April,
however, it became clear that only a
miracle could give us more than a
moderate crop, and on April 10, Oc-
Itober contracts rose above 10 cents
Iper pound. From this date the
, anxiety of the cotton trade and the
confidence of spectators in much
higher prices steadily increased, while
the market as steadily advanced. on
May 20, December contracts in New
York rose to II cents per pound.
Early in June the United States De-
t partment of Agriculture issued its es-
: innate of the acreage for the year,
showing a reduction of "A per cent
| from the previous year, and on June
: %, December contracts had risen
l above II IL cents per pound. On
, July 6 the department issued an esti-
4 mate of the condition Of the crop.
/ showing it to be Sc per cent lower
5 than that of the crop of 1908 on the
same date, all contracts for the new
/ crop Immediately rising above u
i cents and continuing to advance till
= Il 35-100 cents was reached. At this
level the forces both of anxiety and
- Oh speculation seemed IOT the time u
f have spent themselves. Somewhat
more reassuring reports began to be
= heard from parts of the belt, and the
\ market underwent a reaction Of about
t 1 cent per pound, falling to about IL
: "a cents. Between this price and
= Il 1-2 cents the market fuctuated for
= about six weeks. But now crop re-
e ports became again much worse; the
government estimates of conditions
month by month, showed a disastrous
9 falling off, and it became clearer and
3 clearer that the shortage in produc-
. ton was to be SO great that there
. must be forced reduction in con-
g sumption to a very large extent the
world over, and that prices must ad-
: vance until this was contaminated
Accordingly on September % prices
t rose above Is cents, on September p
V above Is 1-2 cents. on October 25
q above IA cents and on October 80 to
f Is cents, on December 2 above Is IL
! cents Con publication of the govern
g ments final estimate Of the crop as
n only 10 ,08S,O 900 bales); on December
9 % above Is cents MAY option), and
g :Cn December 80 to 16 46-100 cents
a (May OptiOn).
r Remarkable Advance.
Thus took place one of the most
g remarkable advances in the history OF
y cotton; or, for that matter. of any
q other commodity. Between Novem-
q Der 10, 1908. and December %, 1909
: cotton of the present crop rose from
8.25 cents to 1916 cents per pound, OF
d 81 per cent, and that. too, with the
s advance starting from a level which
only a decade ago was regarded as ex-
r tremely high. In only one yea since
6 the New York cotton exchange was
O established has any such advance
t taken place. L. G., 10000 Commonly
9 known as the "Sully year,. and ther
e for only a small part of the crop and
for Il period Of a very few weeks. af.
f ter spinners had already bought thu
greater part Of their supplies.
The bow brief history can not bu
give rise, in the mind of any seriou:
y economic student, to questions Of far
n reaching import. It is easy. o:
course, and popular to attribute these