The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-07-10
1t Looks as If the Southern
Cotton Planter Will
Soon See Daylight

A common expression heard these
days, goes-"Why, if the South can
sell it's cotton around 21c it would get
rich" Well, saw we, what if the
South should make a little money!
Lord, isn't it about time? Why
shouldn't cotton sell even at 31c if 1t
possesses that intrinsic value? One
would think from such remarks that
The Southern planter has no right to
make any real profit, and that the
best he should hope for is to turn "the
sweat of his brow" into living wage,
being content to stand aside and watch
others garner the big profits through
handling what he has produced. Just
pause minute and think of the cot
ton mills that have declared dividends
dividings) of from 20 per cent to
100 per cent year after year for a
long, long time. Show us, if you can,
the planter who can boast Of any such
profits.
The recent report of the Depart
mcnt of Agriculture estimates yield
Of | ,065,0 900 bales this season, or 80
per cent larger than the last crop of
1858, Gal bales. This compares with
l3,439, SOB in 1920, 11,420,763 in 1919
and 12,040,5 $50 bales in 1918. The to-
tai production was calculated on d
condition of 712 of normal as of June
25th, and an estimate of about 34,-
S52,00 acres, an increase of 10 per
cent over 31,678,OOO last year. For
eign buyers paid $5i,249,252 for raw
cotton and cotton cloth shipped from
the United States during May. This
is gain of So per cent over May,
1921. In several countries of the Far
East, the importations of American
textile goods have increased 1000 per
cent over 1914. We have contended
for over year thai the whole world
was as bare of cotton fabrics as Il
bull frog is Of feathers, and that more
and more each month this demand
would increase. It's hardly begun.
During the first week of last De-
cember cotton sold at Ice. Last Mon.
| day it sold at 23A-a clean rise of
725 points or 7A cents per pound. We
are going to stick steadfast to our
original prediction If last December
that the price will cross 25c, but we
are not so dumb as to believe substan-
tial reactions won't occur from time
to time. Others can urge buying at
N fnn h,it -, :.
| of course possible for the price to
shoot on through the roof without a
pause, but we thing it is far safer
far more sensible to be little patient
and wait for the reactions than to get
excited and risk buying right at the
top. Don't be too hasty. The market
is not going to run away-it will be
here and ready for you when you are
ready to take advantage of good re-
action.
Just think how strong cotton has
been in the face Of so many disturb
| ing factors. There are serious mil
strikes here and abroad, coal and rail
road strikes, de-spread political un.
rest and Europe as whole is sitting
on top of volcano which is likely to
crupt most any day. If there was not
an actual shortage of cotton-if keen
business men of foresight did not un-
dcrstand the situation exactly, do YOU
believe we would see cotton selling
where it is now? There is sometime
behind this rise other than specula,
ton.
At the moment we believe the
| whole market should work to a lowe,
level through the process of what
Wall Street is pleased to call-"Shak.
ing out the weak holders for the pur-
pose of strengthening the technical
position of the market" Under these
circumstances all we feel like advising
our customers is this-in the event
| fair sized reaction takes place dur
ing the early part of the coming week
we urge that purchases be made on a
scale downward. By this we mean to
fuy modestly at first and be ready ia
buy more at lower level if the oppor-
tunity offers.
Oliver & Houghton,
By ]. S. Oliver.
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