San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-07
No Raw Staple After Next
August If Consumption
Continues as Now.
PRICES TO ADVANCE
Reduced Consumption Ex-
pected When Cost Goes
to. Higher Records.
BY HARDEN COLFAX.

Copyright 1928, by The San Antonio Light.
Washington, ID. C., Jan. 5.-The en-
tire supply of raw cotton in the United
States will be exhausted before next
August at the present rate of consump-
ton and export, the Department of
Agriculture announced today, leaving
the country without this important
staple for several months or until the
1923 crop is available.
The department in its announce
ment, however, holds out the hope that
the acuteness of the approaching situa-
ton may be averted through continued
rise in prices which would inevitably re-
duce consumption. In any event cotton
and cotton products seem destined to
soar to much higher price levels within
the coming months. The departments
statement, given to this correspondent,
is as follows:
Consumption of cotton by American
mills during the first five months of the
season. was on the basis of a little over
0,O00000 bales for 1922.
"Should consumption by American
mills and exports continue at the pres
ent rate, it is estimated that the sup
ply in the United States will disappear
before next August.
1T is pointed, however, that tis
continued advance in prices you'd in
eyitably reduce consumption.
Figures on World Supply.
~The world supply of American cot
ton August ], 1922, was approximately
5,12S,0O0 bales, of which about $780,
600 bales were in the United States.
Production of cotton in 1922 in the
United States is placed at 9,S90,000
bales, indicating a total supply ofAmeri-
can cotton in the United States for the
1929 season of approximately L.,
100000 bales.
American cotton mills are well filled
with orders ahead and Great Britain,
France, Italy, Spain and Belgium, have
taken more cotton 50 far this season
than for the corresponding period last
year. Germany has taken about 125.-
900 bales less than last year and Japan
and China nearly 100000 bales less.
The present price of cotton is around
y cents level. During the past few
days the market has fluctuated in re-
Spouse TO developments in the unsettled
European situation. The future Of the
cotton planter and the cotton mill while
not entirely bound up with the situation
in Europe is directly affected by condi-
tons there aud the restoration of a par
tial state of stability, in the view Of
officials here, will tend to advance
prices sharply.
The inverse also is true and because
such is the case, economists here believe
that the chief hope of preventing cot
ton famine in the United States next
summer lies in a continuance of the de-
moralization in Europe existing at the
present time.
Ia lie hIny- L..
years activities begin. toward bust
ness expansion in 1928 Straws show
the way the gale is carrying Among the
weeks significant developments are the
following:
Pointers TO Prosperity.
The federal reserve board announces
that during the closing week Of 1922.
SGO.OM000 were lent by National banks
upon corporate securities rather than
being devoted TO investment in long term
securities. During the entire year the
net total of such loans the board states.
was but S110.000,OO0. Apparently
more than half of this sum was lent
in one week.
The trend Of Investment money away
from the channels it has come to know
so well in the past twelve months Is
marked with great abruption.
The Department OF Commerce su-
nounces that ten basic commodities in
GLIDING pig iron, steel ingots. cnttnn
and wooden goods. coke. zinc and krdo-
sene. reached high levels for 1922 dur
ing the closing months of the year and,
that the trend of output continues to-
ward new seasonal figures.
A sharp increase in the demand for
bituminous coal has sent prices up
ward 30 cents to 81 ton during the
last fortnight The mines appear 70
have difficulty in meeting the demand,
although they are producing at the
rate Of about 100O0,00O tons a week
high for this time of the year
Demand for money was much more
active during the week and interest
rates hardened. The effect of this NAV
be to compel the payment of higher
interest rate on the forthcoming long
term issue of United States bonds than
officials had hoped for.