Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-31
RISING PRICES OF RAW
MATERIAL BIG FACTOR
Expert Sees 1t as Market Necessity Tha, Goods Values
Go Up With Costs of Operation Standing
Their Present Levels

! inch siNtN-four by sixty as ward
! print cloths. This construction has
been used as "a yardstick and its
I fluctuations represent pretty well the
movements of all the basic gray
cloths. Ginghams and other kindred
fabrics. where the style element
plays an important part have fol.
lowed tn" general price curve OF gray
cloths. but their movements have
been less spectacular. due tu the fact
that the fashion demand made them
NTH" more independent OF gen
eral conditions in TIA" trade than the
bread and huttcr'' lines
What has 1872 Shown?-It was men
toned earlier in this article that an
great world disturbances hav" been
followed by a comatosc period. fol
lowed by fcvcrish bull market and
equally icr"rish slump 1t is also
true that these movements have been
followed by II similar movement of a
slightly less acute rise and "a more
gradual slump. iattcning out to q
reasonably stable level. in which
Fluctuations We're distinctly minor for
number Of years. We have seen in
1929 and 1921 the peak OF an UPWARD
movement and the depth of a recess
sion in both cotton. and it's manufac-
lures. for the two are iuscparablc in
their consideration.
Outlook for ia.3.
II past performances is to he &C
copied "a 4 criterion tho goods mar
ket should advance very gradually
for ut least the first few months OF
1929. after the now existing suppiy
of goods in second hands has been
"bS"rhcd. or course. such a predic-
ton is predicatcd entirely upon the
snrpoSition that the present world
situation viii not develop any serious
disasters. There il no question of
a shortage of cotton. particularly OF
good workable character. only
ON" thing can remedy that situation
ana that is more cotton. Nor. cot
ton cannot lac obtained until il ~
planted. grown ana picked. and that
timc is 4 long way off. Ii is true
mat tn" prospects OF increased acre
age ana effective methods of com
batting various pests such as the
wecNil. might well hear" III. cotton
market and, therefore. the goods
market, but those hopes or fears. as
IN" case may be. can have no really
substantial effect before summer on
IN" amount OF money a spinner must
pay Tor cotton TO run his mill
Wages VIII Not Drop. g
In the light OF the past ten months
experience III every line of Industrial
chd"aNor il is not a probability that
wages VIII drop. II assumed that
cotton Will rule around it's present
or possibly higher levels for tho ueyi
hvc or six months. There is hardly.
mill that can manufacture staplC
gray goods ON the basis OF today's
cotton and wages and get its money
back, let alone make a prof, when il;
sells them II q t..l,
market viii reach a point eventually
where this situation will be rec,ined
Unless wages and cotton go down
Substantially. which is highly i'm
probable. goods must so up or mills
20 out Of business, which is un-
thinkable.
To sum up: The price OF cotton
goods since the conclusion Of INC
World War has followed the primary
aci!on and reaction OF practically all
other commodities II is probable
that : secondary movement M and
down w..I ;aEe place unless ail eco.
monte precedent IS valu.lcss AMI that
me prices ot cotton goods Will follow
those trends. II = evident that even
now The trend - upwards, and 4, is
got unreasonable 10 assume that
With the strong supporting factors
az hIsn raw material anu wages.
coupled with 4 que, hut fairy per
s.stcEt demand. ,ha: ,he trend WIN
continue upwards or a. least con.
time firm through 1923 Certainty
theT" should hc no more than tom
porary rcc,sSions such as are incvi,-
able in every hull movement un,u
the uncertainties of tho 1923 cot
ton crop make themselves fclt.
&C., 1877, by y. Y Evening Post. Inc)