Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1918-12-10
brand REPLIES To CRITICS
Chalrmen Of Cotton Distribution
Board Gives bis Side
Why ARNISTICE Lowered PRICES

Staple Was Never Stronger and Re-
adjustment On Peace Basis Will Be
, Advantage to Priees-Europe Needs
More Cotton Than Ever, and On Ae-
count Of Failure Of Indian Crop ia
pan Becomes Larger Customer OF
America.
Replying to criticisms leveled at the
committee from many sources during
the last few days because Of the bear
ish" condition of the cotton market
with trouble threatened unless light
could be thrown upon the situation
and the entire cotton world on the
anxious bench. c. J. Brand. chairman
Of the cotton distribution committee,
recently appointed by President Will
son, on Friday issued the following
statement:
THE signing OF the armistice auto
matically cut off any further demand
for cotton goods on the part Of the
government; in fact. some orders were
cancelled. This left the mills long Of
cotton bought TO make government
goods or in anticipation Of receiving
fresh orders. To avoid speculation
which would otherwise have resulted
from this condition, some mills sold
futures as a hedge against cotton in
stock or manufactured goods which
they had not sold.
The period Of transition from war
basis to peace basis being short and
abrupt the mills did not have time to
arrange for immediate civilian trade
to take the place of government or
ders, which they lost. Still due to un-
settled conditions. orders for civilian
trade have been coming in slowly. 1t
may also be said that popularity the
government was supposed to be taking
at least twice as great Il proportion of
cotton fabrics as was actually the case.
While this information was erroneous.
it's temporary effect upon the trade was
almost as great as If it had been true.
Mills in Europe have held off buying.
awaiting the determination Of credits
and tonnage that will be allocated to
cotton and other questions directly af-
fecting their operation under peace
conditions.
There was a generous feeling that all
commodity prices, upon the ending of
the war, would rapidly drop, and the
cotton business. along with other lines
Of business, has chared this feeling and
the consequent uncertainty prevailing
has served as a limitation upon the
volume Of business. For a considera-
BILE period before the signing Of the ar
.mistice, there was a large volume OF
selling on the American future mar
kets from foreign countries, both as a
speculation and as a straddle between
the American and Liverpool markets.
Such foreign selling, whether 1t was in
reality a speculative short sale, or
whether is was part of straddle as
indicated operated to help depress
prices.
Efforts Of Committee. 3.
These conditions among others re-
suited in a weak and erratic market.
which gradually sought lower levels.
There is no doubt as to the intrinsic
value and as to the ultimate increase
in foreign requirements of cotton
abroad, tut temporary prices ap-
preached levels which would have
meant actual loss to producers. The
committee on cotton distribution, rec
ognizing this fact. took steps to stabil-
ize the market, and to that end con-
ferred with all executive agencies Of
the government whose activities affect
the cotton trade directly or indirectly,
with the result that, in cooperation
with the war trade board, the removal
Of license restrictions to England,
France, Italy and Japan and the ma
terial relaxations Of restrictions in the
issuing of licenses to Spain and other
neutral countries has followed.
The committee was also in consul
tation with the railroad administration
and secured the resumption Of the is
suance Of through export bills Of lad
ing for cotton.
The committee has taken steps to
counteract the effects of false and mis-
leading information. which was calcu-
lated to depress cotton, by securing the
facts and authentic denials Of false re-
ports attributed to various govern
mental agencies.
"The conditions existing at the
signing of the arnistice. as outlined
above. having rendered the market
very weak and nervous, the committee
in order to prevent merely speculative
selling on the future exchanges from
taking advantage Of temporary condi-
tions by depressing the price Of cotton
to O point where II would be entirely
out of line with its real value issued
an order on November 13 prohibiting
speculative short selling on American
future exchanges. The day before this
order was issued, prices had dropped
two cents per pound on the American
exchanges, this being the limit of
fluctuations in any one day, according
to exchange rulings. Since this order
has been in effect. prices have iuc-
tuated within a range Of about three
cents per pound. and the market now
appears TO be in more healthy con-
dition than at any time since the sign
ing Of the ar1nistice.
Bullish Aspects Apparent.
While the conditions at the signing
of the armistice, as outlined above
presents a temporary bearish situation
as a matter Of fact long range vie"
Of cotton presents some exceedingly
bullish aspects.
-Four short crops have been grown
As a result, in spite Of smaller con
sumption than before the war, thu
stocks of cotton in the world, OF al
kinds, have declined from S,3OO,OO'
bales, July 81, 1915, to 100000 bales