The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-05-15
Letter on staple Cotton Situation

L y Hartsvil1e, S. c. May 10, 1920.
fDear Mr. Editor:
/ have recently been gNinS much
time and study 20 tho present and fu-
ture staple cotton situation and assume
that some or your readers might like
Ito know the results.
The situation, as I see it IS as fol-
Ions:
First. the supply Of good grade up
land staple cotton is practically eH-
hausted everywhere and the demand
is still active This forecasts an urS-
en1 demand for the early part OF the
new. crop.
t Second the staple acreage OF South
Carolina has been increased at least
lo1 per cent and in Mississippi about
i:30 per cent. but the crop is getting a
very bad start III both States. IN the
latter there is considerable .hoeded
| land which cannot be planted for
sometime. il at all. In the Piedmont
section from Alabama to &orth caro-
lina very little of the crop has been
i,piantcd. in fact. much of the land has
not been plowcd for the first time.
'rhir'i. Il late crop is usually poor
one. .'sncciall: in boil weevil territory.
| Four;''. ~, acreage of the Egyptian
| crop whic:. conpctcs with American
staples has been increased. but that
crop also has an unfavorable start.
Fifth. 100000 bales of Egyptians
We're imported into this country this
season to Till the shortage in the Am
erican staple crop This leaves the
English mills bare OF supplies and It
lis unlikely that England will allow the
exportation Of such large quantities
Of Egyptians another season unless the
Egyptian crop is much aarger than is
expected. High grade Egyptians are
now bringing about $3.50 per pound.
Sixth, the automobile tire industry
Of the United States will consume
about one-half million bales of staple
cotton this year and the demand for
automobile tires is increasing at the
rate OF % per cent pei. year. This
VIII probably mean that 625.0o0 bales
Of staples will be needed for this pur-
pose for the coming year. II Egyptian
imports are curtailed American mills
may need next season 100000 more
Ebales or. American staples than they
used this season. and it is unlikely
that the new crop will show that much
increase.
Seventh. while the crop in this sec
ton is late. it is earlier than the klis-
sissippi or Piedmont crop and as trans
portation from here is from one to two
weeks quicker to. the. staple centers Of
New England and the Carolir:ts than
it is from Mississippi, this section may
expect heavy demand during the ear
iy part Of the. season.
1t. is, OF course. impossible to~pre-
dict future prices as many factors can
not be foreseen. TIL. writer does not
feel. however, That the present out
look would justify him in selling any
Of. his own. crop. al. 20 per cent to %
per cent. discount from present prices
as some people are doing. -.
Some OF. the Best posted men in the
cotton world feel that. the great scar
city OF agricultural labor and the. late
start and poor stands will make i'm
po@ibls the, production OF anything
but 3 very small crop: The carry over
OF. spinnahle. cotton from this crop
win be very small and 'whclT We ieor2;- !:
sider this and the very high prices OF
all manufactured textiles would seem
that the present level Of prices for all
:ovr cotton might easily be exceeded
this fall.
The writer has always felt that the
sale OF cotton fo:' future delivery was
an unfortunate .,ractice and should
be discouraged.
First because it has depressing
tendency on the fall markets Is this
cotton is rushed upon the market IS
fast as gathered and by swelling re-
ceipts gives the impression Of Il It's
crop,
Second. because forward sales must
always be made at heavy discounts
under spot prices and the man who
regularly sells his crop at Discount
Is in the long ru, going to get less thal;
the man who docs not sell until his
cotton is ready for the market.
Occasionally forward sales will pay.
but millions Of dollars more have
been lost by this practice than have
been made.
Yours very truly.