The Washington herald., 1921-06-25
LOWCOTTON PRICES
HAVE TENDENCY TO
DEPRESS BUSINESS
Expected Improvement
Has Yet to Become a
Realization.
PROSPECTS BETTER
Heavy Stocks Are Still to Be
Marketed-New Crop
Also May Be Large.
PROSPECTS BETTER
Especial corrsspondsnce Of The Washington
Herald and the n. 7. Evening Post.)

Especial corrsspondsnce Of The Washington
Herald and the n. Z. Evening Post.)
MEMPHIS, Tenn. June 24.-with
cotton values continuing their
downward procession and meeting
with little or no resistance, there
IS naturally but little basis for cp-
timism in the South. or that part
of it which depends chiefly on this
crop for its business basis. Prices
have gone lower than was expected
until recently, but II is recognized
that general developments have
had much TO do with the success of
the bears"
OF particular moment has been
the failure of the export demand
to develop, this having been counted
on as the source from which would
come sufficient buying to prevent
prices going below those touched
early in March. before the planting
season was at hand and an idea
could be had as to how much the
acreage would be reduced. Great
disappointment has resulted from
the prolonging of British Industrial
troubles, and the consequent depre-
citation of exchange and shrinkage
in demand has assumed more than
usual midsummer proportions,
whereas conditions had been con-
fidently expected to be better.
Crop Prospects Improving.
Another factor of Importance en-
tering prominently, no doubt into
the foreign attitude as to buying
has been the improvement in crop
prospects since the period when the
first condition report was made up,
the percentage being given as but
little better than a year ago. 1t
is still assumed that the acreage
reduction will approximate the
average of the private guesses, or
between IS and 30 per cent; but re-
ports have been more favorable
than expected. and labor has been
working better than counted on, re-
suiting in cultivation making more
than usual progress. For a time
there were estimates that the yield
from the reduced acreage and
smaller use of fertilizer would be
around 100000 to S.5O0,oo bales.
but the recent tendency has been
to increase such expectations
However. no wise person at this
time is disposed to attempt calcula-
tions on yield. for the weeviI in
festation is aleady heavy. and the
effects of reduced fertilizers will
not appear until ater.
When the report of May 25 was
made up. the territory near here
showed a condition about as low as
any. but Improvement has been con-
siderable, and the state of cultiva-
tion is excellent. Reports from
every direction tell of how cheaply
the crop is being made. due to
necessity and the fear that prices
for the coming season would be
low.
No Forced Marketing.
As arrangements have been made.
as a rule, for deferrinS payments
due until fall or later.there has been
little or no disposition to force cot
ton on the market, but the gradual
recession of values has created a
feeling Of pessimism as to the fu-
ture. Stocks here and throughout
the district continue large. and in
the recent figures to the Census De-
partment the local stock was given
as75 per cent untenderable. There
Is and has been fairly good e
mand for the better grades, but
such are either very scarce. or the
owners refuse to turn them loose
at current prices.
The recent weakness in the spec
ulatfve markets has caused a feel
ing that perhaps the South is not
any worse hit than are other sec
tions, but it has increased concern
as to what will be the outcome
when obligations must be met. AL
ready a large part Of the cotton
trade il practically bankrupt, were
the books closed. although the fact
that the condition is So far-reach-
ing as TO assure a policy of non
enforcement Of settlement for
time affords a modicum of comfort.
The effect of all this on general
business is to keep it light for COL
l"ctions are slow. and there is prac-
tical cessation OF activity in buying
of anything but necessities. Such
may in the end prove highly bene-
fcial. but the curative process is
regarded as severe by a large ele.
ment of business people.