The Birmingham age-herald., 1914-08-23
By PERCY CLARK

fact that mills in this country and also
 exporters and mills of Europe, buy be-
 yond their current annual needs, when
 cotton is relatively cheap. For in
 stance, in the crop year of 1911-12 with
 production of 16,1Ss. .420 bales, the
 mills of the world took 1.7000O bales
 more than they consumed. This crop
 varied in price in New Orleans from
 a high" of 13A cents July 27 to a
 low of 1-16 cents December F, d
 variation of 3-16 cents per pound, or about S21 per bale.
 The crop of 1el2-1s was 4167, 115 bales. which was taken entirely at an average price of 1920 cents, together with some 300000 bales from held over cotton of previous cropss And the
 mills consumed some 500. 900 bales | (American) more than the crop of that year. Of this 429.000 bales were from stock carried over by the mills from
 the purchases of former years (Hes-
 ters figures).
 The crop statistics for the five-year period, 190S-09 to 1912-13, inclusive, l tthe cotton statistical year closes Sep tember D show that the five crops of cotton amounted to 66,s6o,761 bales. The takings of the mills of the world were 66,7S1,000 males. complete ab- sorption. But the mills spun only 65,- 403, 900, showing 1.300,000 bales carried over during that period. They carried
 over from the previous five-year pe-
 riod about 100000 bales. Cotton prop erly housed can be kept in perfect con
 dition for 25 yearsf There is a rec.
 ord in this state of cotton kept on the farm 20 years, and marketed when the , price went to near 20 cents. August 20 1910, in New York city. 1915 cents hay ling been bid.
 Fair Basis of Valuation It has been suggested that a fair esti-
 mate of of the loaning value of cotton would be the average price of the last | five years as basis. On it's face this seems fair but it involves too wide a range as to the indiscriminate loaning on cotton as to prospective and relative and specific values. The prospective value of the present crop all things being favor able, was 1S1A cents average-the world demands, mill supplies, increased south ern consumption and also increase of spin des in Europe and South America. The present closing crop year will show a clean-up comparatively of the crop ol ! 1913-14. The new crop is just beginning to
 move. It promises to run to 15750,O0t
 bales if the first frost is delayed to No vember 10. If it drops back to October l b twill mean 15,000,000 bales.
 | In all these estimates there is no ac- 1 count taken of the crop of linters. some | 900 bales produced by cotton seed oil
 mills. This crop takes the place of the regular staple in the making of batting l for upholstering, mattress making and 1 other commercial demands. It fetches about half of the price of the full length staple cotton in most seasons and more when the market is high for full staple cotton.
 The common average of the highest prices for middling cotton at New Or | leans for the five years ending September | 1, 1913, was IA cents; the low average was IF cents. An average of the figures struck would be IS cents. The average price of the crop of 1912A3 was 1920. Ii would appear from these figures that the deduction could be safely drawn for g basic value of the present crop, conserva lively, of 121a cents basis middling. Al | lowing for weather conditions of an av craze season, with the crop running be.
 lew mjddling, good ordinary 250 points 1 off, or 10 cents for that grade with mid l ding 121a cents, and then a 2-cent mar ginal difference it appears that the fedora loans may be safely placed with the grow CT, or the next holder, if regular mer chant having a 25 per cent or more In terest in the farmers crop, at a valua tion for all cotton, good ordinary ant above at cents per pound. This is the common average estimate of the cost o1 producing the crop, but so many things 1 epter the proposition of such a varying i and relative character that question vii never be solved to a fixed figure ir economics.
 l Warrant Warehouses