The Glenwood post., 1923-09-27

demonstration of strength in the fall
OF record-breal:ing receipts at the
principal markets since last Winter.
The advance may not be sustained
when the big Fall runs arc made,
but it shows how readily the market
responds when deman1 and supply
come into fairly balanced relations.
The market for we'll finished cattle
also has been much stronger, and
sheep and lambs have been doing
we'll.
The Cotton Situation
The cotton situation las been an
extraordinary one throughout the
year. Two short crops in succession
had reduced the stocks to a point
where anything like normal consump-
ton would exhaust them before this
seasons crop would be made. But
the high prices which resulted from
this prospect ha the effect of re-
ducing consumption in some OF the
principal markets. Exports from the
United States in the crop year ended
July 81, 1923, were 100000 bales,
which compares with 100000 bales.
average exports in the FIVE years end
ed July 81. 1914.
The following is an extract from a
recent letter by member Of the staff
of the London branch of this Bank.
touching this subject.
The Manchester spinnen simply cannot
pay the price for American cotton and m1ks
up into goods that will compete IN ~
ers Of the business done in Liverpool used 70
he In American cottons: now the American
product constitutes less than one-half II the
total and the rest Of the business 10 In the
o-callsd 'outsiders'' /. E. Peruvians, Atinanz,
and Indians. Manchester prefers the Amer
possible. because thev have been using 1t ~
kenerations and therefore know the Gre4p
well. Furthermore. the grades are uniform.
which il more than can bs said Of the ''eut-
siders,' and this makes fuP better production
from the spindles and loons."
The official figures for British ex-
ports of cotton piece goods support
this statement. For the month of
July, 1923. these aggregated 3l66eA-
900 square yards, against 63s, ,o71 ,00e
in the corresponding month of 1918,
and 443,610,ooO square yards for July,
1872; for the twelve months, August,
1872, to July, 1923, inclusive, they
were 4,309, 9,o61 900 square yards,
against 7,075,559, 900 in the CORES
ponding period. 1928.
The reduced stocks and advancing
prices induced the cotton-growers to
plant last Spring the largest acreage
on record. but with drought in the
Southwest, too much rain in the
Southeast and insect pests every
where the market has been kept IN
a constant state of excitement trying
to estimate the outcome. The gov
ernment July report Gas of July 2S)
indicated crop of about 11.560,000
bales. but the August report brought
the probable yield down to 10,788,-
900 bales. The total carry-over Of
American cotton is about 2,5OO.O0o
bales, which would give a total sup
ply of about 13.30O, 900 bales. Con
sumption is estimated by Secretary
Hester, of the New Orleans Cotton
Exchange, at 12,681, 900 in the last
year and 12,82o.000 in the previous
year. 1t must be borne In mind tsa.
it n Impossible to get the aggregate
carry- over at home and abroad much
below $500, 900 bales without 4 very
extensive curtailment of mil OPERA
tons. In view Of the small stock.
OF .otton cocs ever, where, the out
look S one to cause apprehension in
he trade.
The drought in Texas md Okla
homa is now broken and Il Is DOS
sible thai tn. cv,p pay make some
recovery in thlt sectins1. The price
has -dvanced abcut $500 pr BALI
on the xevernmcrt report.