The Birmingham age-herald., 1922-05-28
J. W. JAY < CO.'S LETTER


 Bros. & Co.
 y.w. JAY & CO.'S LETTER
 New York. May 27.-(SpeciaL)- The demand upon America for raw cotton for export and for the Ameri- can mills is now approximately i,0oo,- 0oo bales per month. If the demand continues at this rate the total sup Div in America on July 3l, includ- ing farm reserves. every pound Of cotton of every kind and character. linters, low grades, snaps and bellies. will be about 2.25o,o00 bales with which to meet the demand of 100000 bales per month during August and September.
 Prior to a free movefnent of the new crop recognized international authorities agree that the world will require at least 12,5o0.o00 bales of American cotton next year. The problem therefore is how shall Amer lea supply a 12,500,0o0 bale demand and establish a reserve with a crop which now promises to be less than 11,000, 900 bales.
 If the government bureau reports a condition of 70 per cent it would indicate a crop of about 11.o00,000 bales. With such an indication it Is our judgment that producers are jus tified in holding the remainder of last crop for 25 cents per pound.-J. w. Jay & Co.
 s. h. STEWART & CO.'S LETTER
 Birmingham. May 27.-Cotton con- weather and belief that around 20 fz f%~ n1to nr3A = a tempting spot to take profits. Our markets surprised the trade In open ing 10 to 20 higher. than the close of yesterday, thus causing a spell of short covering and fresh buying of good character that lasted during nearly the entire short session today; the finals were 20 to 30 up. The short covering in the July options was not far from panicky. other months followed in sympathy. The best buyers apear to be the three large spot houses who accepted the May tenders so freely, while the con- tracts were supplied chiefly by old CT longs taking profits, particularly Wall street and the west. Mem phis wired that weevils were playing havoc in sections of Mississippi. The next bullish factor looks as if it will be from the pest damage.
 Dallas wired that fields were dry ing out and that men, women and children were working hard to make a crop. While the western belt may have more fair weather the eastern belt seems to be In for bad spell. The impression is quite general that enough cotton to supply demand can not be raised and majority opinion is that much higher prices are to be soon. Of course, there should be re- actions but they only afford excel lent purchasing opportunities.-S. R. Stewart & Go.
 F. J. LINNELL & CO.'S LETTER
 New Orleans, May s7.--(Special.)- )- As the planting season draws to a close, the trade is confronted with the unusual feature of finding a greater proportion of land not planted and larger percentage of replanting necessary at this late date than for many years past, which late- ness. in connection with moderate acreage, moderate use of fertilizer and the presence of the weevfl mem ace in nearly all districts of the belt. makes outlook for the new crop very uncertain as to the probability of a moderate yield being produced this year. much less a full production.
 As a result of the rejection of the Rhodes bill. southern farmers are left to their own resources to provide seed for repianting. and as many of them in the flooded districts of the Ms sissippi valley and Texas are in fi- nancial straits, many of them hav- ing lost their all by torrential rains and flooding. of lowlands. 1t looks as though this years acreage will not be as large as originally intended.
 In view of the lateness of the crop and so much land still to be planted and replanted, the market Is extreme ly sensitive to climatic developments bulging whenever indications point to the proba bility of unfavorable wealth CT developing, which would delay farm work and cultivation all the more and serve to intensity the weevil situation.
 Strong as the spot situation has been recently, 1t appears to be get ting stronger, as is the case in the cotton goods markets. due to rapid- ity with which stocks of raw cotton In the south are decreasing and de- creasing supplies of the finished product as result of the New Eng land strike and because of the con- tinuance of an urgent demand for spots and cotton goods, the higher prices notwithstanding.-H. & B. Beer.