The Covington leader. (Covington, Tenn.) 18??-current, 1921-01-06
DISCUSSES sOUTH'S
COTTON SITUATION


Memphis, Tenn, January 6.-The
Cotton Acreage Committee here is in
receipt of a communication from j.
Skottowe Wannamaker, president OF
the American Cotton Association,
which is Of so much importance that
it is being distributed for publiea-
ton. The communication, which
brings out the fact that there is a
tremendous oyer-supply of cotton,
was as follows:
"The South is in a very grave stu
alton. The fact must be recognized
at once and faced. The great hope
is that the South viii see and under
stand that further increase in the
supply Of colt n means calamity;
1 that cotton is no longer q cash crop.
I CDR Bradford KnapD, in a recent
statement made at Memphis. said:
Get it out Of your head that any,
thing but the supply + cotton and
the worlds ability to buv fixes the
price of cotton That summarizes
cur present Dredieament.
"Col. w. B. Thompson. Of New
Orleans, has also said: TT makes
70 difference whether there is o
much cotton or toe little demand for
it, the result is the same.' Today,
in comparison with world demand,
/ there is world surplus cf cotton.
amounting to not less than 100000
and possibly to as much as 10000
! 600 bales The present supply is
net far from 27000,000 bales and
may be as much for the current year
as 30,0O0,000 bales.
"True enough, the total supply
this year is not much more than the
world product in 1918, when, ac-
cording to Prof. John A. Todd, world
production reached a total Of 27,703,-
900 bales But we are feeling right
now the effect Of tremendous world
crop of cotton produced in 1911,
1912 and 1918, According to Todd,
the world crop, including America
during these three years, was 1915
900 bales. Perhaps had the war not
come on very rapid increase, which
Rad been occurring annually in spind-
leage capacity, might have taken
care If all this cotton, but while
there may be many ifs, no .if' has
ever changed single fact. The To-
wear average amount of American
cotton on hand unspun at the begin
ring of each fiscal year. prior to the
war was 100000 bales. AT August
/, 1920, according to Hester, an UNI
questioned authority. the amount Of
American cotton unspun in the world
was 6,0S6,O00 bales. The govern
ment's final estimate places the crop
this year at 12,997 900 bales, and
while some Of may think the esti-
mate to large, we must accept it
for the present, at least
'tThe amount of cotton that has
come 'in sight this year is approx
mately 100000 bales less than the
amount brought 'in sight to the cor
responding date last year Not
withstanding this decrease in the in.
sight, the visible supply has I'M
creased about 100000 bales or more;
which figures must be added to the
carry over in any attempt to fore
cast the carry-over at August /,
1921. And since the crop is also
larger, che difference in the size of
this years crop and last wears crop
~ ,987, 900 against 11,32b,00O, or
/ L 1852 900 bales-must be added, max
ing total indicated carry7over ex-
ceeding 100000 bales.
Government figures, issued by the
bureau of the census, indicate that
the world carry-over increased last
year, 1,168,0O0 bales, Notwithstanding
decrease Of considerable proper
tions in the worlds supply of Ameri-
can cotton. This increase in the
world supply of all kinds was largely
due to the tremendous crop of East
India. We are now threatened with
world carry-over Of 100000
bales, which, en- top Of a possible
world crop Of 27,000,000 bales, would
give us a world supply for the next
fiscal year Of 40,000.000 bales Be
it said, however, that world pro-
duction of commercial tton has
averaged less than 100000 bales
per annum during the last five years.
World consumption of all kinds Of
cotton was never as great as q ,0OO,-
900 bales in a single year, including
linters at the peak Of Inter con-
sumpti n for manufacturing explos-
ives during the great war. The
greatest consumption of American
cotton iE any one year, including
linters. was never as much as 10000
900 bales "The 10-year average con-
sumption of American cotton prior to
the great war was about 100000
bales, or only 100000 bales more
than our prospective carry-over. The
10-year average assumption of all
kinds IF cotton, including American,
prior to the great war; was about
1880 900 bales. The world is not
likely to consume more than 10000
900 bales during the present fiscal
year, and we have no assurance that
it will consume that much, nor do
we know, or are there any signs
as to when conditions may be ex-
pected to improve.
ssEurope is bankrupt. 1t requires
nearly 1000 German marks for the
former par value Of "a cents each, to
buy bale Of American cotton at
10 cents per pound, so bad is the
state Of foreign credits. The number
Of spindles fit for use the world over
has been reduced about 100000,
out of a total Of 154000,000. Eng
lands 55,000,0O0 spindles, the major
ity Of which are working American
cotton, are operating only "a hours
rer week. and there are many Ameri-
can spindles either totally idle or