Evening star., 1925-03-28
COTTON CARRYOVER
REPORTED SMALL
Consumption Growing Stead
i|y-Price Outlook for Next
Crop Appears Good.
BY j. C. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW ORLEANS, March 2S.-Europe
will have bought 100000 bales Of the
supply Of the American cotton before
the new crop comes on the market next
July. That statement was made to the
writer today by the ultimate world au-
thority on the consumption of this great
oasic commodity, Col. H G. Hester,
secretary Of the New Orleans Cotton Ex-
change
The significance of that statement
lies in the fact that the carryover into
the new crop year will be relatively
small The production of the staple was
larger last season than many expected.
But consumption has been improving
steadily. 1t is too early yet to determine
the extent OF the new crop. The seed Is
not all in the ground. Acreage is as yet
undetermined, and the question of
weather and boil weevil conditions is
still to be answered.
Supplies Going Fast.
Demand, however, may be expected
to increase steadily and the problems
involved in supplying that demand
now are occupying the attention of
the members of the American Cotton
Shippers Association, now in session
here. The visible supply of cotton is
shrinking rapidly. 1t has dropped
from around 4.763.0o0 bales on Jan
uary 2 to approximately 3,700, 900 or
less now. Consumption by mills is
gaining. although this trend is far
less obvious in New England than In
the South and in Europe.
Manchester mills are reporting q
much improved situation and the
English manufacturers OF cotton
goods are seriously discussing in
creases in production. European and
American mills are returning to con-
ditfons approaching normal. England
is expected to use at least 40 per cent
more cotton this year than last. The
mills of France. Germany and Italy
are working at something near
normal capacity.
Many Mills Well Supplied.
Experts here estimate that there
remains something like 3,325, ,0OC
bales of American cotton from las,
seasons crop, and carryover to be
distributed before the new crop be.
OF the world are we'll supplied with
raw staple for their requirements
however.
AS to prices, the best informed men
here assert that outside the compar-
atively small daily market fluctua-
tions quotations seem likely to re.
main fairly stable. Until the proba.
bilities of the coming crop are bet.
ter developed holders of spot cotton
are very independent in their atti-
tude. Mills are calling cotton stead
lily. and some shippers who sold them
are having to pay premiums to get
is
interesting to note, however, that, ir
the opinion of one great cotton
authority, IL is the surplus which de-
termines the price when all is said
and done.
Europe Determines Prices.
Europe, he said, was the dominant
factor in the price of American cot
ton. America does not use the
amount of cotton produced. The
price at which the remainder is sold
therefore, determines the price for the
entire crop. England, he indicated
would rather have American cotton
than that of any other country, and
to a certain extent 1t is up to the
American mills to determine how
much England should have, he de.
clared. If they did not bid for i,
Europe would take it, since the con.
tinent, as a result of the war, has q
shortage of cotton textiles which ht
estimates represents 1oo,000,000 bale.
of raw staple.
Europeans need sheets on theii
beds" he added, but they have man.
aged to get along without sheets 70,
about 10 years and they will not buy
them unless the price is attractive
But improvement in economic condi.
tions Is producing a greater willing.
ness to make such purchases"