Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-06-13
COTTON IS WORTH
$3.50 MORE A BALE
TODAY THAN IN 1921
BY ESTES DOREMUS


The average 500-pound bale of
cotton today is worth $3.50 more
than it was year ago, a gain of
more than 100 per cent, $34 more
than the low levels of last Febru.
airy and 1925 more than a week
ago.
The highest price for spots since
last October, 1921, was reached Sat
urday when local cotton was quoted
at $3.50 on the floor of the Atlanta
Commercial exchange while the
same day a year ago the farmer
was being offered only lilo cents
pound. The present price scores
a new record for 1922 and marks
steady march upward since late
February when the quotation was
1880.
The advance in Atlanta Saturday
was S1.75 a bale over Friday and
followed new highs for near months
on the New York and New Orleans
cotton exchanges. In New York
July doomed to 22.3S and October
to 1929, new highs for the move
ment and while December and Janu-
airy failed to reach their crest of Fri
day, both new crop months held
strong in the high ground. In New
Orleans, July passed the same OPP
ton in New York and closed at
22.4S, seventeen points above the
latter.
The renewed bull movement that
sent values to new record figures,
followed a period of relative mac
tivity that characterized the market
after the publication of the first bu.
reau report on the condition of the
growing plant. There was slight
reaction from the early bulge, but
continued unfavorable weather con.
ditions and a strong spot demand,
coupled with better economic condi-
tons, halted the break and the up
ward movement since has been un-
checked.
Cotton at Premium
AS the season progresses, the
trade is becoming more and more
alarmed at the possibility of real
shortage and the rush to get cotton
while it is relatively cheap has
scarcely before been equalled. Re
ports from New York this week de-
clared that only one bale was offered
where two were wanted and in this
section it is an equally difficult
matter for buyersr to get the actual
cotton without paying a premium
over the market.
The premium that is being asked
in this section is not the. result of
a concentrated holding movement
but arises through the fear of the
holder Of old cotton that he will not
make enough this season to justify
his turning loose at present quota
lions.
The rains that have soaked Geor-
gia have been duplicated throughout
the belt, the growth Of the plant has
been retarded and the potentialities
of boil weevil damage are CORE
spondingly larger as a. result of the
certain delay in making the crop.
Taking the situation by and large
there is no reason to alter the opin-
ion expressed in previous articles
that a cotton famine faces the world,
1t appears extremely doubtful that
II 100000 bales will be made, and
with the small carryover, that much
cotton will not go around with the
normal demand that is expected.
Anything less than 100000 would
be calamity and crop Of 8,500,0g0
bales, the same as last year, already
being talked Of by some authorities,
would necessitate the finding of a
substitute.
Crop Value Comparisons,
While there is no means at pres
ent by which the 1922 yield may be
estimated, with any accuracy, it may
be interesting to compare crop val
ues of the two years, taking the
crop of 100000 bales in Georgia in
1921 as a basis of computation.
For the sake of comparison, there
fore. figuring 100000 bales again
this year, the Georgia farmers crop
would be worth $50, 10000 at the
present price against $44,400,000 last
year, or a gain of $46,000,00. This
is exclusive of the carry-over.
Those who are in close touch with
the situation, not only are of the
opinion that present values are justi-
fled, but that they should at least
be maintained under existing condi-
tons, despite talk that the advance
has weakened the technical posi-
ton of the market. Profit-taking al
ways may be counted on to cause
some recession, but the weight of
opinion is that the trend will be
upward, and may be expected to
continue so with little possibility Of
a crop large enough to meet demands
being made.
The trade is looking for higher
prices almost to man, and those
who are not bullish now, lean to the
long side as the money side in the
end Certainly the market is pur-
chase on soft spots in the face of
such a strong demand for the actual
and continued damaging weather.