The Birmingham age-herald., 1923-12-30
COTTON HAS HAD SENSAT |ONAL YEAR
Gradual Rising Tendency Gull minated Nov. 30 In 37 3-4,
 Highest Price For Years

NEW YORK, Dec. 29.--The past year in cotton was featured by the sensational advance in price to 37-% cents pound-the highest level since 1920-which was the result of the realization by spectators and the trade that crop of 100S1, 900 bales, which Is the last estimate by the government, would be insufficient to meet the needs of. the world. Various unfavorable factors were responsible for the short crop. For example, in the early part of the season, when planting was first begun, excessive rainfall made 1t impossible for the farmer to properly till his ground and prepare it for seeding, then, after the poor start, weather conditions be- came extremely unfavorable and re- tarded the growth of the plant, while a prolonged spell of hot dry weather in the middle of the summer de- stroyed large quantity of cotton In Texas and Oklahoma and caused con- | siderable shedding. Then, as if these were not sufficient obstacles to over come, an early frost caused further serious damage to the crop, while heavy steady rains which followed the cold wave beat out considerable quantity of cotton or lowered the grade by discoloring the staple. Anoth- CT important factor which contributed to the smallness of the crop was the heavy damage which resulted from the boil weevil and other insects.
 Generally Rising Tendency.
 1 The value of cotton as indicated by tn movements of prices on the three leading cotton exchanges, displayed generally rising tendency In the early part of the season until In the middle of March, when cotton sold as high as 31 F cents a pound. How ever talk of buyers strike, com bined with rumors of a crop exceed ing 11,500,000 bales, had depressing and values declined to under 2f cents a pound in the early part of August. The publication of gov ernmental report on that day indicat- ing yield of about 10,750000 bales, alarmed the trade over it's supplies and mills became heavy buyers for the purpose of replenishing their supplies. which had become alarm ingly low. Prominent speculative | operators also took hold of cotton at this time and the market definitely shaped it's courage upwards under heavy buying by domestic and for eign mills. A gradual downward re- vision of crop estimates by both government and private crop report ing associations followed and esti- mates pointed to a crop of slightly under 10,000,o00 bales compared with the first government estimate of around II, 100000 bales. The gradual downward revision of crop estimates served to awaken mills to the unprec- edented situation with which they were confronted and they became &C., tive buyers for the purpose of laying in supplies of cotton to keep their spindles going until the next crop would become available. Under the stimulus of heavy buying by the trade and enormous speculatlv in- terests the market advanced sensa- tionally over period of four months, on November 30 finally reaching the highest levels in several years at Sf 3-4 cents pound. This represents an increase of almost $S50, 900 900 in the value of the crop compared with It's value on August 2, when cotton was selling under 21 cents a pound.
 Aside from the bullish crop sitl a. tion last year, the steady demand for cotton by foreign countries was an important feature which contributed to the sensational advance. One en- couraging item in the exports was the fact that Germany had imported more American than for some time past. England also consumed more American cotton and mills in that. country enjoyed a generally pros porous year.
 Consumption Much Greater.
 
 domestic and foreign mills was also much greater than in 1922. Despite the higher prices of cotton consump- tion ran at a record breaking rate in the early part of the year, amounting to 623,000 bales in March. For time after the peak had been reach ed, demand for cotton sagged off slightly, but towards the end of the year when prices for raw cotton again mounted higher, consumption showed marked improvement.
 Last year, however. was a poor one for the cotton mills due to the fact that they were not inclined to buy far into the future owing to the fact that their supplies of raw cotton were limited. In the early part of the year, demand for cotton goods was active and prices mounted steadily in sympathy with the ad- vance in raw cotton. However. early in April a slump in business occurred which continued through the bai- ance of the year, when orders on their books had expired in the middle of the year, mills began to curtail production and operated mainly on hand to mouth basis during the re- mainder of the year. Authorities on the trade situation, however, believe that prospects for the early part ot 1924 are good and that business will be somewhat more prosperous.
 As to the future of cotton, 1t Is generally believed that supreme ef- forts will be made by the farmer to raise bumper crop this season as the as America as the "cotton nation" of the world will be seri- ously threatened if the south fails to raise crop in the neighborhood of 12,000,000 bales. However, while 1t Is yet too early to forecast the pos sible crop during 1924 it can be safe- ly said that another record-breaking acreage will be devoted to raising cotton as many farmers will set aside ground which had been devoted to less profitable products