Evening star., 1921-08-06
BY STUART p. WEST.

NEW YORK. August 6.-The COM
mercial and commodity. rather than
the financial. markets have furnished
the significant developments of the
week affecting the financial situation.
For months. the huge surplus of sugar
has threatened the stability OF all
Cuban industry. Inability to market
Its cotton has been the cause of untold
distress in our own south The great
majority Of the opper-producing
mines have not been operating. These
accumulated surpluses have been an
overhanging menace. Not only were
the unfortunate producers the suffer-
ers. but their financial hackers have
nad large sums tied up. Prices of all
three commodities during the past
eighteen months have sustained al
most unprecedented losses.
AS far as copper is concerned. the
downward movement has not been
checked. Sales were reported this
week OF the red metal under IL cents.
1t is still buyers market. Signs of
revival have not yet appeared on the
horizon. At the same time statistics
show that the unsold surplus is slowly
but steadily melting away. and IL this
Is 80. price concessions are not SO i'm
portant. In the case of copper also
the surplus was financed when the
Copper Export Associations s per cent
notes were marketed. 1t has caused
some comment that the association
has been able to call for redemption
A large block of these notes of the
earliest maturity before the due date.
SO that whatever the future may have
in store as to prices, there is no occa-
sion for alarm as to the effect on the
producing companies.
Cotton Advance Maintained
The situation with regard to cotton
is quite different. There are still
great supplies held over from last
years crop. But when the govern
ment report was published on Tues
day. showing an unprecedentedly low
condition for the growing crop as O
July 25. there was an immediatc
response in higher quotations for
great part maintained. And while
the south. looking to the past, was ?
heavy seller at the higher prices.
Wall Street and the traders. lookint
to the future. were buyers. For
reports from dry goods and textile
trades generally furnish one of tbs
most encouraging indications of the
entire business situation.
1t is a truism to say that sooner
or later the actual needs of the world
in general. and of the one hundred
and ten million people of the United
States in particular, must stimulate
productive activity. The point upon
which emphasis should be placed is
that these needs and not the over
production Of the past now bulk
larger in speculative opinion. This l.
not to say that the cotton trade has
not many grave difficulties still TO
overcome 1t is to say that ther.
has been distinct improvement. 1t is.
Of course. understood that from any
long-range standpoint a short crop
is no benefit to the country as a
whole. But until the cotton grower.
like the cotton manufacturer. can
start on a new basis of confidence
the handspring Of prosperity cannot
be restored.
Demand on Sugar.
Consider also the situa ton in the
sugar industry. There has been q
sharp difference of opinion as to the
result on quotations of the large guam
tfty of raw sugar held over in Cuba.
II must be admitted that the measures
so far taken could only be justified by
desperate conditions. But when the
large refining interest, which has SO
consistently predicted lower prices. re-
entered the market and paid the ad-
vanced figure quoted by the Cuban
commission, and then in turn advanced
its own price for the refined article
there was the best of testimony to the
fact that in sugar. as in cotton. the
time had come when demand, as well
as supply. was a factor to be consid-
cred. II the sugar-producing compa-
nies whose losses have been SO heavy
can now see their way clear to the
new crop year, the favorable effect