Evening star., 1924-12-31

underproduction to degree that
finally ended in virtual cotton fam
inc, a combination of events brought
relief through increased supplies of
both American and foreign cottons.
The recent annual Government es-
innate indicates a 1924 yield of 49,
| $4,000 bales grown in the South,
| compared with only 10,17o,o00 IN 1923,
$3.50, 600 in 1922 and a crop of only
| 10000 900 in 1921.
Thirty-five Cents n Year Ago.
A year ago cotton was 35 cents or
above price that meant inevitable
curtailment in its use in all but the
most fortunately placed textile plants
as well as hardship in every direc
tion. Spindles and looms had 70 stop
| running, as the public could not or
would not pay the cost of goods at
price corresponding to the high level
of raw material. Throughout the
world manufacturers felt the short
age and cotton advanced to a prohibi-
| tive figure in order to reduce con-
sumption within the limits of a rap
| idly dwfndling supply.
A crisis threatened the cotton trade,
such as had no counterpart since the
Civil War, and what the condition
would have been with another poor
| crop was staggering in it's implica
| tions. Before the outbreak of the
great war in 1914. the South had pro-
duced crops averaging over 100000
bales for several succeeding years,
ending in 1914 with the record break
| ing outturn of over 100000 bales.
Then production decreased until
the average of the three seasons from
| 1921 to 1924 WAS only 100000 bales.
Problem of Manufacturer.
with a situation threatening ruin, and
| nothing reveals the deplorable posi-
tion better than the loss of nearly
| s3,000,0oo reported by the Amoskeag
Mills in it's annual report for the past
year. In an effort to meet this un-
| paralleled emergency one of the most
successful corporations in the textile
| business had encountered a huge
| loss in operating expenses. Without
| a larger supply of raw material other
mills less strong would be obliged
| to go out. of business. While the cot
| ton market itself had become the
| center of abnormal activity, the
| trade suffered, business slackened,
| machinery ran part time, and the
| problem facing mill owners was how
| to hold out until the new crop ap-
peared in the Fall.
/ Prices Attain Maximum.
With forced curtailment in all di-
| rections and the textile trade passing
| through what was conceded to be
| one of the most depressing phases in
| the experience of a quarter of a CEN
tury, the first eight months of the
calendar year were prime ones.
| Prices attained their maximum the
1 day following THANKSGIVING. at the
| close of November, 1928, when May
| contracts in New York touched 1923,
after starting their sensational rise
| from the basis of 81 cents in the pre-
| Vious July. This marked the culmi-
| nation of the upward movement, and,
| though the tide was slow in reced-
| ing, froms January 1 on all factors
operated in the direction of sagging
| prices.
| SO many mills found the price pro-
| hibitive that curtailment had spread
| with extreme rapidity until there
were instances where. New England
mills shut down entirely This was
| not a situation to encourage specu-
| lation for an advance which had
| already served it's economic function
| by pushing the price level to point
| where the demand was reduced COM
mensurate with the small existing
supply.
Too Uncertain for Spectators.
On the other hand, experience of
the two previous growing seasons,
/ with attendant wholesale weevil
damage, rendered the outlook too un-
certain to encourage speculative SELL
ing for a decline. Though october
contracts, representing the as yet un-
planted crop Of 1924, had touched
80 cents when the advance reached
its peak In the Fall of 1923, they
again sold at 29.sS during July, 1924
Anxiety over the start and progress
of the new crop was the dominating
note of this entire eight months course
of events. At no time could there be
said to have prevailed any degree OF
security or feeling of confidence in an
ample crop of cotton.