New-York tribune., 1922-03-05
Cotton Mill Men
Think Depression
Has Spent Itself
Sales Indicate That Buyers
Are Willing TO Take Goods
and Bids Below Market
Receive No Consideration
Special Dispatch 10 The 4yiouac

NEW BEDFORD, Mass. March d
The resistance Of the cotton manufac
turing industry in all its branches to
further defation that has come to a
head in the last two weeks has brought
increasing confidence in the industry
that the depressing influences have
lost their hold. The finished goods
market. the raw cotton market and
even the labor market have demon
strated recently their belief that the
downward movement has gone far
enough and rallied against further
pressure for lower levels.
Taken specifically, the Fall River
print sloth market furnishes the most
gratifying illustration of recovery
from price and trade sIumps. The
sales this week were 10000 pieces
somewhat less than last week. The
two weeks have developed the fact that
the buyers are willing to take goods.
The manufacturers have been firmer in
their prices each day. Bids below the
market have received no consideration
from the manufacturers, The mills.
moreover, apparently are willing to
sell only spots.
Yarns too have injected a stronger
tone to the market. Buyers have been
IN more advantageous position to
resist the yarn advances, because they
ieel satisfied there is sugicient sup
ply to run the mills several weeks.
There has been only d slight improve
nent in the demand for that reason.
The fact that the South has come to
recognize the necessity Of getting high
er prices is most encouraging. Still
consumption lags behind production,
and only as the mills stand together
against further operations at loss can
an advance be maintained i'll the face
of increasing surpluses.
Ra cotton has not been subject to
depression from the mills so much as
from the strike situation. With such
large number Of mills closed in New
England, with a direct retarding effect
or the other plants, there has not been
trading enough to sustain price levels
If cottonwere in a very week position
Cotton has not only this adverse con-
dition, but has steadily boosted price
levels The raw cotton trade this week
has been good in Fall River where
every possible resort TO lower grades
Of cotton is being made. There has been
little change in extra staples buying
from last week, though inquiry has
been more definite. The mills that are
not affected by the strike are neverthe-
less watching the wage controversy, re
luctant to buy cotton for stock until
after it is settled whether they are to
be involved in a strike.
The frmer prices on finished goods
do not mean the mills are satisfied
or that fair return is being realized.
But the resistance is looked upon as
indicating the cotton industry throwing
off the shackles of its depression. The
tablishnent Of sound conditions is
now more essential even than g profit
Somewhat contradictory to this view
is the increase in curtailment in the
Fan River mills. The curtalment now
exceeds 25 per cent. There has been
less. shutting down in New Bedford.
But in both cities there is no longer
talk Of general curtsilment.
Never before in the history of the
cotton manufacturing industry in New
England have mill shares held up so
strongly under adversely than during
the last year or eighteen months.
Shareholders have held to their stock
tenaciously. This has had steady in
fuence, the one firm factor in the
otherwise demoraiized state of affairs.
Dividends have been maintained to-
some extent in most cases. Values
have dropped anywhere from 25 to 40
per cent since 1920, yet there has been
no time that buyers have not been on
hand to pick up available shares. Non
qutt stock has been a feature among
New Bedford mills in recent weeks.
After passing its dividend the quota
tions dropped 90 points. In the last
two weeks it has regained part of It's
loss, having jumped from $50 to 500