Evening star., 1925-09-04
COTTON SOLD TOO
FAST, IS CLAIM
Growers May Lose $780,
900, 900 if Pressure to Sell
Is Continued.
BY }. c. ROYLE.
;necial nisnA;ch tn Thn star.

Special Dispatch to The Star.
NEW YORK. September 4.-Markht-
Ing policies pursued by some OF the
cotton planters are causing heavy
losses In revenue and purchasing
power TO the South. Some OF the best
informed cotton men in the industry
said today that this error, in judG'
ment is reducing margins OF profit TO
the growers to the danger point with.
out the probability that the consum-
ars OF the country will benefit BY
lower prices.
Planters in certain sections have
been pressing their cotton for sale. In
reality they are holding their bargain
sales 1T the beginning OF the season.
when demand Is at It's highest. rather
than at the close. when demand has
slowed down. This In in exact opposi-
ton to the regular merchandising
practice which reduces prices after the
peak of the season Is over TO stin1u-
late tagging trade and reduce carry.
over.
Crop Sold Too Fast.
since the nsw crep began to move
spot cotton at New Orleans has de-
clired from "a cents a pound to 21h
cents a pound and today is only slight
~ above the latter fgure. Probably a
million bales have been marketed on
this decline, leaving something under
IS 900 900 more to be sold, according to
late crop estimates. Prices are APP
proximately $3.50 bale less than
when the season opened and nearly
SIS a bale lower than the average
spot price which prevailed last season.
These prices do not reflect quotations
on the various exchanges alone, but
indicate the exact return to the farmer
Tor his crop.
Growers Lose se5,o0e, ,eeO.
This shrinkaee already has cost pro
ducers between $4,000 900 and $40.
100000 and experts say II the prac-
tick is continued 1t may cost the South
scot, 900 900. Producers are handling
theif crops like so much cash instead
OF as merchandise. This has been an
old established custom. but this year
1t has meant that some growers will
have only a small amount on the right
side or the ledger.
Close students OF the situation say
the Government senii-monthly crop
reports have made the situation worse
BY drying up speculation in the fu.
lures market Merchants. exporters
and spinners who bought the farmers
cotton have been accustomed to make
hedge sales in future markets as a
protection. Spectators took these
hedges In the hope OF a rise in price
and profits In the Winter and Spring
when the spInners and exports bought
in their hedges. Speculative demand
in most recent years has been suf-
ficient to prevent declines of conse-
quence. but last year the Spectators
lost money owing. they claim, TO the
frequent and disturbing Government
estimates.
Cotton Surplus Predicted
Mill takings and consumption are
now running on scale which indi-
Gates consumption Of around t5. .0oe.-
900 bales. The probable available
supply. based on the last Government
estimate, il 1890 900. This indicates
A. surplus or $500 900 bales. Yet the
price today Ia under % cents. There
is still no certainty that the crop will
come up II estimates. The plants
must stiU 60 through the period OF
the epuinoxial storms, ana the drought
damage is not yet fully determined.
Cotton and corn have withered in
Of the CarohnAs as q result OF drought
being pushed in Georgia TO give en-
ployment TO farmers whose crops
have been destroyed. The people of
south Carolina have been called on
BY the Governor to spend September
s in fasting ana prayer for rain.
Southern hnanciers therefore are
urging growers not TO press the sale
OF cotton too soon and are aiding them
TO hold for more advantageous mar
kets.
CCopyriEht 1927