Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-11-07
HOKE SMITHS PLEA
ON COTTON SELLING
|. BACKED BY EXPERTS
BY THEODORE TILLER
Atlanta Journal News Bureau,
408 Evans Building.

WASHINGTON, D. c., Nov. g.
The suggestion recently made by
former Senator Hoke Smith that cot
ton farmers and merchants Of the
south ought to hold their cotton
for higher prices, which he and 9th
ers foresee because Of natural con-
ditions, is borne out to an extent by
the New York Times, in its financial
page comment on the cotton mar
ket.
The Times, which is widely read
by business men Of New York, OBJ
serves: with southern spot mar
kets so close to contracts, and no
hevidence of pressure from actual cot
ton, reactions which occur from time
to time, are short lived. A census
report was taken as indicating a
worlds consumption of 100000 to
100000 bales in excess of produc-
ton this season. This is predicated
or based on the assumption that the
world will consume as much cotton
as last year."
This statement in the Times is
regarded by followers of the cotton
market here as important in two
respects, figured out as follows:
1t indicated from the census re-
port that the demand for cotton dur
ing the coming year will exceed the
production of this year by from
100000 to 100000 bales.
Spot Requirements
The carry-over on August 1 Of this
year, according to Hester, was from
100000 to 100000 of bales. It
will require from 100000 to 2,O0O,-
900 bales to keep the mills running
between August /, 1928, to the time
the crop of 1923 reaches the mills,
so that, according to this statement
based on the census report, there
will be shortage of supply next
year of between 100000 and 2,OOO,-
900 bales of cotton, if consumption
during the coming year is equal to
consumption during the past year.
With these facts conceded, 1t
should mean that next spring and
summer cotton will be selling far in
advance of present prices.
The second proposition in this ex-
tract from The Times is the first
stated, there being no evidence
of pressure from actual cotton Of
fered for sale in the south, the
price of cotton is advancing.
There must be, it is estimated here
100000 of bales Of cotton still in
the hands Of producers or merchants
in the south. The mills have all
they need for the present. Senator
Smith has indicated his belief that
if the holders in the south keep
their cotton a. few months longer
they, instead of the spectators, are
likely to receive the advanced price,
and this would run into millions of
dollars for the cottongrowing states.
On the other hand, cotton men
know that if cotton is dumped on
the MAJ ket, prices inevitably decline.
The observation in the New York
Times fits in with the interview
given by Senator Smith ten days
ago and his statements in recent
1etter to Director Jackson, of the
Georgia Bureau of Markets.
The New York paper illustrates
with the cessation of southern sell
cotton price. It seems logical that
out for price the bears of the stock
exchange must retreat.
Reaches rs Cents
Cotton has recently gone to 25
cents, with prospects of higher
prices. Assuming that the crop
this year, as Indicated, will be be-
tween three and four million bales
less than the world consumed last
year, and with a carry-over not up
to the average, a shortage of cotton
appears in sight and southern cotton
holders will occupy a position diff
ferent than heretofore when there
has been more cotton to sell than
the mills needed. So experts here
and in New York are inclined to
look for eventual higher prices.
Sometime ago there was talk of 25-
cent cotton by the middle of Novem-
Der, but that figure was reached the
first week in November and it is re-
ported here that certain mills are
already pricing their finished prod
ucts on the basis of thirty cent
cotton. The situation would seem
encouraging from the cotton pro-
ducers' standpoint.