New Britain herald., 1923-11-16


 Wellesley Hills. Mass, Nov. 16.- The recent drop in certain textile se- curities has led many investors to be- lieve that unseen factors were at work !. within the industry. Roger w. Bab- sons analysis summarized in state ment issued today pretty well ac- counts for the development.
 Conditions in both cotten goods and worsted and .woolen goods in dustries aresirregular and unsettled" says the statistician. ."The funda- ! mental reason for this is largely the fact that prices of these goods are relatively much higher than most ness men in any line feel that the price structure is beginning to get top-heavy, there likely to be con- siderable caution exercised regarding the purchase of raw materials, the manufacture of these high-priced ma terials into furnished goods and the buying of goods for retail distribution. This is the case now in both cotton goods and wooden and worsted goods. especially mems wear. lines. Curtail- ment of production is in progress
 "The cotton goods industry began the fall with fairly good supply of orders taken during the late summer. Production was good during Septem- Der, especially among Southern mills. During October, however, tendency to increase the price of cotton goods in line with the advancing price Of raw cotton brought about renewed re- sistance on the part Of buyers. As result. many mills fin both the north and south are going, on part time.
 Whether or not the recent govern ment report. wherein this years cot ton crop is estimated about 10.250,- 900 bales as compared with an aver= age of 9,So0,000 during the previous three years, and of 12.S00,000 during the three years previous thereto. will result in freer buying of cotton goods. time alone will show. There is much evidence presented to show that both the American and the worlds supply of cotton is very low compared to the need for cotton goods. Buyers. how ever, argue that conditions are no
  ton is declining, and that 30 cent cotton fully discounts all the bearish factors. Neverthelsss. sellers of cot son insist that there can be no ques- ton of shortage and that demand far exceeds supply and that the only reasonable development is for cotton prices to advance.
 The present situation favors low cost concerns. These are mostly lo- cated in the south. Statistics show that southern mills usually work much more steadily than northern mills.
 "The wool situation is not quite so tense as cotton. There Is no acute | shortage of wool, and the price ten- dency has been recently downward. | The chief difficulty at present seems | to have arisen by reason of an at- tempt last summer to name higher prices on mems spring wear lines. Considerable sales resistance and but | few orders are reported. Another req son is that makers of mems clothing entered sthis season with fairly heavy stocks carried over from year ago. ntIt ID consequently itsS EtdSOn TUT | purchases than last year. Tn addi- ton to these facts. general business as |refiected in the Bapsonchart is now about 19 per cent below normal
 'Women's wear, especially novelty Hines are, however, apparently meet ling with more success than mems lines. Mills making such goods seem |to be operating on better schedules |than those making mems wear. Turning to the securities repre- |senting the textile industris," Mir. |Babson continued, 'the listed textile |stocks are few in number. American woolen, Consolidated Textile, and the two silk issues, Mallinson and Kayser, |come first in mind in this connection. |By far the majority of the New Eng land mill issues enjoy only a local or market. The trend seems to have been the same for all kinds, however. Ever since the gem ral market started its downward purse last March these have offered little resistance to the trend and are hnIdfpd au1ty a bo1ff fnidtta.y bo- ]