Arizona republican., 1920-10-18
JOURNAL
 SEES TURN COMING
 IN COTTON MARKET

Current Affairs. published by the Boston chamber of commerce, carries in each issue some of the best in- formation obtainable relative to the markets of the commodities most ex- tensively handled in that city. The is- ceived at the chamber of commerce here, and an editorial on the cotton market contains an encouraging para graph, although it is preceded by a resume of the cotton situation throughout the world. According to this statement the worlds supply of cotton, including the amount of cotton now on hand and the probable crop, will total 1500O,0 900 bales. Last year the worlds consumption was 13,000,0O0 bales, and buyers are disposed to wait until there is more demand for dry goods, which win stimulate manufac- ture. Last year in August the con- sumption of cotton was 100000 bales, while this year 1t was 600,000.
 This is not taken. however, In dis couraging light by the chamber of commerce journal, as, continuing, It says:
 While no trade demand has as yet developed and probably will not until the dry goods division of the trade shows a decided improvement, and each further price cut serves as added evidence that cotton has not yet been fully deflated; still most authorities are satisfied that the decline which has now lasted two months and has re- | suited in writing off 20 cents a pound | from the price of the staple has ac- complished the bulk of the process and that further reductions are but | the cleaning up of the odds and ends which as they induce further selling only pave the wSy for quick recovery when the time is ripe.
 While nobody looks for a genuine bull market to develop in the near flu ture. the impression is becoming quite | general that deflation in cotton ha; | about run its course, and that prices cannot go much lower until the fina
 deflatory process, the lowering of tho
 costs of production, is accomplished ! Traders are beginning to test the mar
 ket for signs of support, trade letter.
 are almost unanimous in referring t | the markets as too low to sell. Th' labor situation in this country is de cidedly better, the British coal strilS
 seems nearer settlement and severa
 campaigns are under way well sup
 piled with capital to push textiles il
 central Europe.
 Another factor which will tend t
 bring about stronger market is th
 recent heavy selling of hedges agains
 spot cotton. which has been so popula
 in the south. Much of this selling vii
 be covered before the months tradin
 is over. and the effect is likely to caus
 a sharp advance in the contracts" A report of the general cotton sit
 uation throughout the country ha
 been issued by the Cotton and Cotto Oil News of Texas, and a copy of thi
 report has just been received by tn
 Phoenix chamber of commerce. Tn report in brief shows that the crop c
 cotton this year will be less than 12,
 900. 900 bales. and the forecast is tha , if the price of short staple holds belo' 1, 30 cents until after December l it ma run only 10.000.000 bales. Reports froT
 each of the cotton growing states in 9 | dicate that a considerable amount ( ! cotton will not be picked if the pric 9 remains low; hence the price will to , very large extent govern the crop to b ! gathered.
 There is generally a disposition { ]. hold for higher prices. although the re s port by states shows that this move
 
 . much headway. In a few of the smalle Q producing states there is a dispositio to sell at whatever price that is of . fered. It appears that the major poi e ton of the crop will be held. For ir S stance. Georgia is estimated to have
 crop of 1.37S.75S bales. and the repo Q says; Holding movement is gener O and is supported by all parties, ar e unless better prices tempt, no To Q grades will be picked"
 In Oklahoma. with a prospectiY e crop of better than a million bales, % is reported "the holding movement - general and the public is supporting IF Of South Carolina. with nearly a mi if lion and a half bale prospect. 1t
 said, holding movement we'll orgal
 iZed and we'll supported" Texas r. not expected to harvest quite S.000.0
 bales this year. although with go' 3 picking weather it may run over th f estimate. With regard to holding. it D ! said. holding movement just begI . and is receiving universal support" g Weevil damage throughout all q 2 southern states has been verX gre this season.