Paragould soliphone., 1921-09-05
CONDITION OF
 COTTON NOW
 VERY STRONG
One of Nations Largest Brokers Expresses Much Encouragement Over the Outlook.

The following communication to The Daily Press and Sollphone IS from J. w. Jay & Company, or New York. It expresses optimism over the present prospects for cot ton and general business cond1- tions. The company's analysis of the situation is interesting:
 Situation Looking Good.
 New York. Dear Sir:
 Seven years of subnormal con- sumption of cotton goods has created a scarcity that more than offsets the worlds reduced buying power; couplde with the fact that if the same sum of money were expended during the coming year as was spent by the ultimate consumer dur ing the past twelve months, present prices would furnish demand for more raw cotton than would be ob- tainable This, in our Judgment, solves the consumption problem which is now agitating converters and retailers and tends to a stabil- 1 ity for the prices of cotton goods. Some of the larger converters have this week disclosed their attitude by placing orders at top prices as tar ahead as the mills will accept. 1 Mill stocks of raw cotton in Amer ica and abroad are down to min mum and regardless of what may be i feared for the general financial situation, the mills will be compelled
 to buy steadily, even though they continue upon hand to mouth ba- sis.
 The new crop promises to be so small that the farmers are practically assured of a steady demand for his cotton in sufficient volume to equal the movement of the new crop cotton to market during the period of the
 heaviest movement. With the statis.
 tical position becoming stronger as the season progresses, we do not concur in the generally expressed belief that the new crop will prove weight.
 Mill takings are about p per cent greater than last year despite the strained financial situation. While | this indicates a consumption several million bales below pre-war stand ards. it also indicates carry-over at the end of the present season which will allow the mills to barely get through comfortably to the next years supply.
 | The reason partial paralysis of production exists in the chief in dustrial nations, is not because the world has no need for commodities but simply because they cannot be
 produced at price which consumers are able to pay. The reason is not in the cost of raw material, but in | the cost of manufacture. High standards of life disappear in the imperative necessity to live-and workers must produce to live. All | of this has an obvious relation to the worlds situation today. When | labor decides to do a fair day E work for fair days pay, the wheels 1 of commerce will again function Building will become active, traffic will be heavy, pay rolls will in crease, confidence will be restored and there will be the ability to buy, and the capacity for cheaper production enlarged
 That the tide has turned strongly in this direction, there is abundant | evidence both in America and abroad. A better spirit exists be- tween employers and workmen and
 there is a better outlook in the in Idustrial world than has obtained for long time.
 The news of yesterday was all
 constructive. Manchester reported activity in cloths. Silver was high
 CT. Cables reported the textile
 trades in Germany, Austria, Czecho Slovakia, Finland. Spain and Holland as much improved The French
 government will help the textile in.
 dustries in the devastated regions
 North Carolina cotton strikes have
 ended and the troops have been | withdrawn. Fall River sales are Increasing decidedly. Retailers stocks are low.
 We reiterate our advice to our l southern friends, to market their cotton with deliberation. There is no occasion for haste and as the season progresses, it will be disclos- ed that cotton is in strong posi- tion, It is imperative for the well fare of the world that the south should next year raise a large crop, and it is obvious that a price not
 below 15 cents, basis middling, should be obtained for the present supply.
 Yours very truly,
 J. W. Jay & Company.