The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-20
SOUTHERN MILLS
GAIN BY FURRY
IN CLOTH BUYING
Cotton Is Strong Statistically
But Something More
Is Needed

NEW 4ORh, may lS.0COttOn ~
statistically strong and good for
more active trading than has been
the case of late, most traders believe.
But in order to stimulate business
throughout the cotton markets, in
Guiding finished goods from jobber to
retailer, raw cotton must show some
thing more than Statistical strength"
The situation in gray (unf1nished)
goods apparently Is dependent upon
the action of cotton. With cotton
showing actual weakness, despite its
statistical position, the converters
still are sailing close to the wind
goods will decline still further. 1t is
true that of late there have been a
few buying "flurries.' But they have
been no more than "flurries."
Most of the business which has
been taken in these "flurries' has
gone to the southern print cloth mills.
New England has been left out ow
ing to it's higher price position. Out
side of some orders for tobacco cloth
and small orders for lower-count
print cloth there has been very little
business up Fall River way. Cur
tailment of production is reported
from New England and it is likely
to spread.
Watch Jobbers' Situation.
The jobbers' situation Is being
watched closely. Recently number
of jobbers have placed full-sized or
ders for branded sheetings. In one
or two instances these orders nave
been for goods, which the Jobber sold
short some time ago. Now that the
jobbers feel that prices are low they
are recovering themselves. Still Others
however, nave good sized quantities
of sheetngs still to buy. And 1T is
wondered how much longer they can
wait.
Among the outstanding indications
of the present situation is the fact
that while cloth printers announced
some time ago that they would ask
higher printing charges this month,
only in small number OF cases nave
these advances been enforced, the
converters report. Apparently. the
announcement of higher printing
charges-coming just as the market
was about to turn the other way
were made at what was termed this
week an "unpsy hologicaf' moment.
o o o
Gray Goods Unsettled.
After a spell of good trading last
week, the gray goods market has
again become unsettled. The cloth
market last week had the support of
cotton and the business put through
totaled larger than for some time
past.
The beginning of this week saw
raw cotton turning weaker again,
and as has been the case in the past,
interest in cloth purchases fell off
correspondingly.
The bulk of the buying last week
was done on the basis of 9&c for
3S1a Inch, 64x6O, 5.35 yard print
cloths and 11Ac for S9-inch, ,6Sx72:,
Ats yard. Advances were followed
to ga cents and then to 10 cents on
the 64x60s. At these levels. more
of the trade seemed ready to operate
in a large way. but despite expecta-
lions of mills cotton broke again ana
for the time being inquiries for cloth
have been withdrawn.
New prices on denims, made on
Monday, are expected to have an I'M
portant stabilizing effect on the Tin
ished goods markets. Prices. based
on 90 cents a yard, for 2.20 denims,
are somewhat lower than the trade
had expected. This is the same basis
that prevailed in January The re-
expected that a number of important
lines soon will be sold up and with
drawn.
The buying of denims is regarded
as encouraging. The theory les that
other lines of goods will be handled
in the same fashion. and that when
goods prices are lin line" good buy
ing will follow.
The belief has prevailed that cot
ton has been dragging along the bot,
TOM ana Lndl 40 Wv
markets are not distant.
Decline started IN March.
The greatest decline for any week
since the downward movement IN the
cotton goods market started in March
is shown by the Fairchild Cotton
Goods Average Price and Index Num-
Der. for the week ending May Fat
1925. This compares with 17.6S for
the week previous, and with 1911 TOT
the week ending March "a, the high
of the year The cotton goods aver
age price is carried back to the level
of the middle of January. number
of the finished goods prices are USED
here with nominal" figures as SELL
ing agents are waiting for the prop
er moment to name revlslons.
The average price of raw cotton,
for the week ending May u, is 1916
and is the lowest weekly average
since December 49, 1922. when it was
25.4S. The high average for cotton
for this year was 31.10, for the week
ending March II.
!, Gray cloth business last week was
+, probably larger than at any time
since March Print cloths reached
new low levels at 8 q cents for ~ h2
inch; 64x60, 5.35 yard. and IL cents
for 39-inch, 6sx72. 4.75 yard, Good
buying followed, and mills advanced
prices.
The trade was ready to go ahead
at one-uuarter cent higher on the
6Ox6Os and at one-half cent higher on
the 6sx72s, when cotton broke. Print
cloth prices then receded to their po-
sition of before the activity.
Sheetings continued going lower
There was some business placed by
iobbers. Generally, there has not
been enough to sustain levels. Drllls
are being adjusted to proper basis
in relation to other cloths, and are
lower.
Sateens are nominal. with indica-
lions that when business starts up
1t will be at prices somewhat under
present quotations.
Duck prices are feeling the effect
of the cotton decline more than was
true previously, and show further re-
ductions
Three Months Movement.
The following table shows the
movement of the index number of the
last three months:
avg. Price
Week Ending Index No. of Cotton
Nav ,,,.,..,..... 1853 27.37
April % ............... 1851 Ss.oo
April Il ......sss..-. ll-oSo 80" 80
April IA ......sss.... Io.uo 80 -
Mercb AZ - 1909 29037
r.