Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-05-15
CHESSLEY HOWARD
PREDICTS AN EARLY
BOOM FOR COTTON

Chessley B. Howard, Of Atlanta,
in a general letter to the state sales
departments of the American Cot
ton Growers Exchange. expresses
the opinion that the price OF cotton
soon will advance sharply and that
spot cotton soon will sell on much
higher basis than futures in the con-
tract market.
AS sales manager Of the organiza-
ton, comprised of the eleven state
cooperative marketing associations,
Mr.. Howard may be said to have
handled more cotton this year than
any primary cotton merchant in the
world.
His views on the future course
of the price of cotton, therefore, have
unusual weight and interest. They
are as follows:
1.-The government IS now out with
statement of supply and distribu-
ton of both American and world
cotton up to April 1. 1928, all in bales
Of 478 pounds net or 500 pounds
gross. Of course, there is a differ
ence compared with running bales.
"This statement shows stocks of
American cotton in existence in the
hands of mills and elsewhere
throughout the world on July 81,
1922, 5, 123,000. Production Of Amer
lean this year, 9,937,00O
'"Total supply for 1522-23, 15,O6O,
900.
Consumption Figures
"It shows consumption for the
eight months ending April 1, 1928,
9,021 900.
Assuming consumption of
American at the same rate for the
four months ending August L, 1928,
would mean a consumption Of Amer
lean cotton. 13,500,000.
Leaving only 100000 American
in existence on August 1, 1928.
s'The government showed a world
stock, including American in exist
ence in the hands of mills and ev-
erywhere on July 81, 1922, 9,536,OOO.
World production, including Ameri-
can for this year. 17,755,0O0. Total
supply, 1929, 27,291,00O.
i SHOWS WOElu VI
all kinds of cotton for the eight
months ending April 1, 1928, 1881.
900. Assuming a continuation OF
consumption at the same rate Tor
the. four months ending July 81
1923, would mean a world consump-
ton of all kinds cotton, 22,900, 900.
Leaving only about 100000 of
every kind of cotton in existence
August 1, 1928.
LAS it will be from about two to
three months after August LIST be-
fore cotton of new crop can reach
the mills of the world, this would
practically spell a famine condition
even if all of this cotton was availa'
BILE for all Of the mills, which it will
not be. Besides, some mills will be
we'll supplied and others have very
little. Therefore, there must be
heavy. reduction in the consumption
of cotton between now and new
crop, either by curtailment or shut
ting down Of mills, Mills will cur
tail when unable to sell their prod
uct at a profit, but will not shut
down unless absolutely necessary,
preferring to run at a considerable
loss in order to hold their labor
together. The above government
figures as to consumption, and
therefore probably carry over, pre-
sent quite a different picture from
their figures published in commerce
reports of February ~, which esti
mated the consumption of Ameri-
can cotton 12,312,OOO, the same as
last year, and of all kinds of cotton
20,579, 900, leaving an estimated
amount OF cotton in existence Au-
gust 1, 1923, American, 2,775, 1000
all kinds, $1,000. They have
found that consumption has been
going on at much greater rate
than they estimated at that time "hta
it would. The curtailment necessary
has not yet commenced, and ! EEL
sure you will find that when the
census bureau issues its figures Of
American consumption for April,
that 1t will show American consump-
ton around 100000 bales more than
April, 1922.
Trade Conditions
1.-THE above statistical position
while extremely strong. would not
mean so much If business were on