The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-12-31

petroleum prices closed the year q
high levels, 241 percent above the pre-
war average. Beginning with earl
summer it seemed that each new
month would make q new record 70 |
domestic production, and October
production went still higher to 80 1888
600 barrels, growth from 80, $50 ,O0(
for January and the pre-war averag<
of 19,220,000 barrels. Since June GU
total production plus imports has ex
ceeded our total consumption, a.
though by only narrow margin
Stocks have increased slightly from
the beginning of the year and from
pre-war, but not significantly. Gu
averaged 100000 barrels, had jumped
to 6,290.000 by January this year, and
in October stood at IL 1850, 900 barrels
Exports this year have almost doubled
but even so, still represent no signific
ant quantity, the high month being DC
tober's shipment of 100000 barrels
Petroleum probably eventually will !
suffer in sympathy with other com
modtties, but has as yet shown bu(
slight signs of weakening
cotton's Wild Year.
The 1920 cotton situation was char
acterized by extraordinary f1uctua|
lions in price, production estimates
and consumption, thus bringing prob
ably heavier gains and losses than any
other crop. The year ended critically
The textile industry, which had been
lnordinately prosperous during 1918
and early in 1920, reached extraordin}
airy high levels, was the first to suffer-
and its collapse the world over, begin
ming in the spring, was one of the frs
signs of recession. Index numbers
from Great Britain, France, Italy
Sweden, Japan, and our own country
show that textile prices everywhere
were much higher than other groups
1t is not so curious then to find thau
they have been the hardest hit sincd|
spring. The Economist index of Britt
ish prices shows that textile prices
there stood as high as 1858 percent}
above 1913 during last March, but BY
the end of November they were down
to 1888
Strictly from the productive stand
point and disregarding the general
business situation, the worlds priced
for cotton is influenced primarily byI
what this country produces. We pro
duce one-half of the worlds total and
our cotton is the best for textiles
When our preliminary estimate of
July l made it appear that the CROP
would be only 11,450,0O0 bales, spec1I
ulators were able to push raw cotton
prices to record heights But latter
estimates revised this figure upward !
until by Dec. ! il was found our CROP
had yielded 12,9s7.000 bales, an in1
crease of more than 100000 bales
This situation and the general world
crisis explain why cotton rose to a newt
high of 43.75 cents on July %, them
fell to a low of IA cents as the year,
drew to close Cotton consumption
had fallen heavily because the world
cannot pay for cloths. Even consump1
ton in the United States fell FROM
$4,000 bales in January to 1872 ,00OI
during November, a truly extraordin7
airy decline.
Increased Coal Output.
The widespread need for coal has
been so acute and production here and
strikes and transportation difficulties
abroad has been so often reduced by
that it is particularly gratifying to
find that the worlds bituminous COAL
output turned for the better during
the third quarter. Improvement was
shown in the United States, Great
Britain, Germany, France and Belgium,
the five big producing countries. Eu-
rope, of course, needs coal particular
ly. and was thrown into more string
ent need this fall when Great Britain's
coal miners struck, greatly reducing
her production and exportable surplus.
Continued on Page Eleven)