The sun., 1916-10-29

Southern farmers. relying on their
coming crop to pay their yearly bills
at the stores and their notes at the
banks. found they could not ind a
market for their staple. A lot Of
cents. japanese merchants are credited
with buying all the staple they could
find at those figures.
Slowly conditions improved. One Or
two cargoes OF cotton were sent abroad
and were landed safely. More fol-
lowed. England kept what merchant
ships she could spare busy carrying
cotton from New York, New Orleans.
Galveston. Mobile and Savannah, land
ing 1t at Liverpool.
Freight rates on the staple rose 10
heights before unknown, because Il
the great scarcity OF ships. In some
cases as much as SO a hundred was
paid for space to Liverpool from New
York. The normal quotation is be-
tween 20 and 90 cents and has been
made to Germany.
Buyers commenced to circulate
through the country with offers. The
new regional reserve system, which
offered to take up loa ns on cotton, vas
put into effect. The "Buy-a-Bale'
plan. in which An appeal vas made to
the country to come TO the relief OF
the South by buying its cotton at 10
cents n pound, was started and abb
sOrbed n large amount Of staple. In
cidentally, this bread cast on the
waters has returned "A whole cake.
1t started as a charity and turned out
a good investment.
In the meantime the cotton ex-
changes reopened. Buyers and sellers
%reentered the market. England. Nor
way, Russia and Japan sent urgent
calls for cotton. Gradually the trade
recovered Its confidence.
Several reasons are back Of 20 cent
cotton. Acreage has been smaller thar
usual this year. The boil weevil has
probably done more damage. experts
say. han ever before. Weather con-
ditions have been particularly adverse
in the eastern part of the belt. Some
sections have had too much rain.
Others have not had enough. There
have been disappointments galore In
getting the fieecy staple out Of the
fields and into the gin.
Every succeeding crop estimate, both
by the Government and by private re-
porters. has indicated a smaller crop.
In the meanwhile a tremendous de-
mand for cotton abroad and at home
had developed. England's stocks are
very l~ow-lower now than for many
years. England must have cotton.
Another striking feature has been a
big domestic mill demand. The prices
of cotton goods have advanced strik-
ingly, but the problem Of whether the
advance in cotton goods IL pulling up
the price Of cotton or whether the ad-
vance in cotton is raising the prices OF
cotton goods is about Al possible of so.
luton as the problem OF whether the
mills are sold far ahead. Owing To the
scarcity Of other products they are
obliged to use more cotton.
Bulls estimate the consumption this
year at not less than $4,000. 900 square
bales Of cotton. and they figure that
this will mean the practical exhaustion
Of this years supply. II the crop II
IL. 000. 900 bales. which now seems en-
tirely likely. and the carryover from
last year Ia 2,235, 900, as has been es.
timated. then the entire visible supply
would he but 1925, 900 bales, barely
enough for the worlds urgent needs.
This condition, backed by reports OF
early frosts and news from the cottor
belt that the top crop will he a very
light me has produced the most sen
~sationally bullish market that tho
trade has eve known, a market thai
has shot some Of the active months
past the 20 cent mark, which up L
) this time had beer more of a dream
than a probable fact. The real upwart
movement started thirty days ago ant