The Washington herald., 1922-05-22
COTTON SCARCITY
PRIDICTEDBFFORE
new CROP ARRIVES
South Doubts Increase in
Yield and Expect
Higher Prices.

MEMPHIS, May 21.-with evil
dence accumulating that the tex
tile manufacturers of the world
are steadily enlarging their opera
tions and with inroads on the sup
ply of raw cotton more rapid than
anybody anticipated. here in the
producing section the question 10
beginning to be asked: How can
a period OF much higher prices be
obviated without some unexpected
ly large crops for the mex. season
or so?
spot Holder. Dictate Prices.
Helped by the unfavorable start
the new crop is getting. partieu-
larly west of the Mississippi River,
with conditions In the entire sec
ton eastward not any too favor
able, the effect Of the Ibullish sta
tistics has been emphasized great
ly. In the spot department III Sie
market conditions have beoome
such that holders of the unsold
remnant can practieall. dictate the
Lrice. Moreover, there has arisen
demand for practically all sorts of
cotton, some of -whi,h have for
many months been slow sale Sales
nave been fairly largsl considering
the amount on hand. bu: the pol
icy has been to turn IL loose grad
TALLY at steadily rising values.
There Is keen satisfaction among
benks and business people ter-
orally at the cleaning up pccc.ss,
and IT seems probable now that
ere another crop can be availab;e
it matters not II. II h. small oil
large one), actuah cotton Is ECfns
to be very scarce. One % the .ea-
lures of particular salts action is
thst the bulk of the low grades
mas been disposed OF. although 1t
IL still contended by many that in
the current statistics OF supplies on
hand and to come forward are in
clIded lots of cotton which are
worthless for commercial useS and
should be eliminated by those who
Keep tab on the figures II Is ex-
pected that some such action will
be taken at the end OF the present
season. which will max" the figures
even more bullish than now ap-
pears on the surface.
short Crop Believed Likely.
II is admitted that calculating
on the size of yield this early in
the season Is fraught with risk and
has often proved misleading, but
the recent improvement in trade
and business In so many direc-
tions. particularly in British tex
tile circles. has helped to accentu-
ate the responsiveness Of sentiment
to unfayorable Developments. So
much depends on the crop that the
trade Is expected to be quite SEN
sitive all the season TO every added
danger. for II is beginning to be
felt that the handicap under which
the crop already is starting will
mean a short crop. unless there
comes a prolonged period Of alb
normally favorable weather.
Ideas as to possible yield are
more or less vague. but since the
Southwest has suffered so much
from almost unprecedented spring
rains and the Mississippi Valley
floods have lasted SO long and COW
cred so much area until too late
for cotton planting to be done with
any reasonable chance of a crop,
there is a tendency to revise acre
age increase expectations. All along
the idea has prevailed that the
chief increase in yield over last
season would come from the West
ern belt, especially that which
does not suffer so much from boil
weevil activities: but It Is now
doubtful whether this can be the
case.
Labor Abundant and Eager.
In this territory progress during
the past week has been more sat
isfactory than any time since
spring opened and stands are good,
but lateness Is still to be over
come. One of the welcome features
in all directions is the abundance
Of labor and its apparent willing
ness to work. Costs are much re-
duced and it would seem prob
able that whatever the price re-
ceived. cotton will bring prosperity
to the South for the next season.
However. the leading business in
terests would prefer to see a rea-
sOnably large yield and moderate