The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-27
SPECULATION IN COTTON.

SPECULATION In COTTON'
James A. Patten, who successfully
oornered the wheat market and then
turned his attention to cotton, is GER
tainly playing in great luck. II may
be true that his judgment was good TO
begin with, that existing conditions
warranted a rise in the price of cotton.
1t did rise, sure enough.
But there were rumors OF an illegal
combination; manipulation, in fact. ana
the federal officials started an inTesti-
cation. Then the price receded end
Patten and the other cotton bulls were
compelled to put up a million or two
TO steady the market. At that juneture
the success of the pool was beginning
TO be doubtful.
Providence interviewed in behalf OF
Mr.. Patten. The recent cold weather
has nipped the cotton plants of the
southern states and replanting is nee
essary. The situation is rendered worse
owing to the fact that good seed is
scarce. Consequently, a full crop can
not be raised this year. All Of which
has redoUnded greatly to the edvan-
tage of Mr.. Patten and his associates.
The price of cotton has gone up, and
the weather man cannot be indicted by
the grand jury.
Other countries besides the United
States raise cotton, but their produc-
ton is not sufficient to influence the
Price in the markets of the world. After
the Russians conquered Central Asia
an attempt TO raise cotton was at once
maze, American seed being used.
The attempt has been only partially
successful, the extreme limit of prodnc-
ton being 100000 bales of 800 pounds
each. The Asiatic cotton is extremely
dirty, owing to the dry climate. Win1s
sweep through the fields continually,
dust is carried to the growing cotton
and completely fills the fibre, so that
when it is ready for market about 10
per cent of the bale IS composed of dirt
and other debris. So far neither the
growers nor the manufacturers have
found means of eliminating the dirt and
the latter are not partial to the Asiatic
product in consequence.
Russia ranks third among the Eu-
ropean countries in the manufacture OF
cotton goods, S,O76. 400 spindles being in
operation.
In 1908 the Russian mills required
about SIPS, 100000 worth of cotton, OF
which SCI, 1865, $40 worth was imported,
and of this, according to the statistical
bureau Of the department Of customs,
SAC, 9OO,925 worth was American cotton.
imported as follows: Direct from the
United States, 272, 1902 pounds, valued
at So, 421, S25: via German commission
houses, 1O4,977,5 S4 pounds, valued at
S11,175, 500; via England. 59,1S7, 56S
pounds, valued at 5000, 6ea; total, 1885,,
SO5,1S4 pounds, valued at $4s,9OO,925.
For the first ten months OF 1909 the
imports of cotton fell of to S37. 100.
of which only S2S.43S,1O5 worth was
American, due to the abnormal increase
in price, caused by spectators in the
United States.
Before American cotton reaches its
destination in Russia it passes through
several hands. and the price reaches
abnormal proportions. The Russian
manufacturers assert that if they were
able to buy at reasonable figures they
would consume 100000 900 worth of
American cotton per annum.
Although Mr.. Patten and his associ-
ates will reap a rich harvest owing to
the destruction of the southern crop by
freezing, it is certain that clamp will
be put upon their gambling operations
in the near future. The present inves-
tigation is but the beginning, for the
future of the cotton industry in the
United States depends upon a radical
change being made in the methods of
marketing the crop.
The United States consul at Moscow
sums up the situation by saying that
sit may as well be stated here that
unless abnormal speculation is stopped
in the United States and the business
taken out of the hands of stock gam
blers. the Russian manufacturers will
spend their millions in irrigation
projects in Asia in order to supply the
home demands and to enable them to
compete in the other European mar
kets."