The Washington herald., 1922-10-09
COTTON PROFITS
Present Price of $1O0 Per
Bale Gives Owners
Income.

MEMPHIS. Oct. S.-Increasing
bank clearings. improved collec-
tions. and enlarged demands on
the banks for funds tell a story
Of expansion in trade and industry
in the South which cannot be de-
MED. 1t is largely due to the fact
that cotton. the South's best me-
dium for drawing on the wealth of
other parts OF the world, has been
picked rapidly and marketed free
ly. the price Of 800 or more a
bale apparently proving satisfac-
tory to the producer.
1t is easy, for the observant man
in the cotton country to see why
outside the belt the rapid selling
of the staple tends TO raise doubts
as to the correctness of the re-
ports of the crop being as short
as IL actually Is. But he also rec
ogniZes that the real explanation
Tor this Willingness to sell at cur
rent levels lies In the fact that
there are so many obligations due
and overdue, and that the price Of
20 cents or more a pound means
profit on the cost Of growing the
crop. Moreover. Il Is a very good
price compared with what has been
received during previous years.
Accept Government Figures.
Despite the disposition in some
directions to cast a bit OF doubt
On the accuracy of the government
crop estimates. particularly after
last years woeful blunder. when
after the October condition report
the Official ststisticians missed the
actual outturn by about 1900. 900
bales, the reports issued today are
regarded as approximately correct.
and are expected TO stiffen resist
ance to bearish efforts. For some
time the GeneEal idea of the crops
size has been in the neighborhood
/ of about 100000 bales. which
with the carryoyer of less than
5000. 900 bales of American cotton
can hardly be figured to mean
anything but a scramble for cot
/ ton before another crop can be
Grown.
1t has been and stiil is notable
that during the period OF liberal
mark citing snd OF reactIonGry ten
dency OF values very few peoplA
have expressed themselves as look
ing for a dScllne much IL any under
30 cents basis. middline upland. on
the other hand. Il large majority of
/ the trade. a. least in this part of the
I belt. do not hesitate to predict still
/ higher levels later.
Financial Conditions Good.
| In the face of the fact that selling
OF cotton has been rapid. on" of the
outstanding features of the situH-
/ tion is that the financial condition
/ is unusually strong. The banks in
/ this center. which finance the hand
ling ofa large part OF the crop IN
this territory, have not been called
on for any rediscounting as a result
of demands on them from cotton
people. This is quite unusual and
reflects a healthy state OF affairs
from the standpoint Of gradual mar
keting. of such is desired. Funds
have been available without limit
and at low rate and such is eA-
pected to be very important little
later in having to do with the price.
There has been little or no pressure
brought 10 bear to have cotton cold
! freely. and this is generally attrib-
uted to the fact that the prevailing
desire has been to liquidate indebt-
edness and he in position to take ad-
I vantage Of higher prices expected TO
come later.
The crop is heinc saved in unusu-
ally good condition and the picking
will end much sooner than usual, be
| caust Of the fact that IL has all ma
tured ahead Of time. dLe in a meas
ure to the depredations of the boil
weevil. which took practically all
of the middle and late part Of the
crop. Perfect weather since picking
started and plenty Of labor have also
helped in the process. and the better
average quality will mean not a lit
tie to thc value. Frost date in the
cotton section Will mean nothing
this year to yield. and IL bad weather
does not come very quickly there
will he an unusually small amount
OF low-Erade cotton, particularly
off co'ors.