Arizona republican., 1921-08-14

That representatives of the textile manufacturing interests anticipate much higher price for cotton is an interesting fact brought out by an article by the editor, published in the American Wool and Cotton Reporter of Aug. 1. Tho viewpoint of the manufactures. or the representatives or publications devoted to the inter ests of the manufacturer. should al ways be of interest to the grower.
 The article is in answer to the question by a subscriber as to the probable course of prices in the next few months and the editor presents convincing resume upon which he bases his final statement that the prices of cottcn--short cotton would be from IS to 25 cents a pound within a few months Dou- bling this price will give the price Pima should bring if short cotton prices follow the route this authority lays out.
 In his answer the editor goes into great detail as to the carry-over, the reduction of acreage, the probable crop and other factors He discusses the probable increase in consumption of cotton goods. the resumption of the operation Of idle machinery, in creasing business, and many other factors necessary to consider in fore casting the trend of prices
 He shows that the supply on hand for the worlds mills is 2,500,000 bales short of normal, which will be made up as business gets better: that the carry over is not unusual, in fact be- low par; and predicts that owing to the lack of supply there must be much buying of Egyptian cotton in the next few months. He then con- cludes his analysis by the following comment on Prices for Coming Sea- son."
 "As to prices for cotton during the coming season: This is a matter of opinion, and depends upon some of the conditions which we have referred to; we think the lowest prices for cot ton for the season will be noted per- haps in late September or early Oc- i tober, although We do not say that they will be lower than they are at the present, or lower than they have been We merely say that at that time one can be more sure about con- ditions and the pressure of the new crop will be greatest, so that if there are to be any lower prices this is about the time when they can be ex- pected, although we personally be- lieve that actual improvement is talk ing place in the industry sufficient to counteract any effect which may be noted from the crop coming to hand. We believe that by March or April 1922, there will be fair buying on the basis of better business conditions and that the future will be clearer and We are inclined to believe that
 a price of IT or IS cents per pound would not be tou high for cotton at the time mentioned We think cotton | will perhaps range between IS and | 25 cents in future. under what might be considered fairly normal condi- | tions. The price may be higher than these figures if the demand should be i large and the supply small, while il might be lower if the supply is large and the demand relatively small.
 'The fact should not be overlooked 1 that while the consumption has beer extremely small for a number o1
 years. there are indications that there will be progress in the world con
 sumption to compare with that noted | in the past, and perhaps exceeding | 1t. At the same time there is not much prospect that any excess sup l ply of cotton can be easily obtained
 and accordingly the price is likely ts be higher. Over period of time. and
 because liquidation has undoubtedl, been entirely completed. it would
 seem that q purchase of cotton ough to be responsible for some rather at
 tractive speculative profits.