Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-09
TEXTILE FIRMS HIT.
BY COTTON REPORT
Many Concerns Had Delayed
Buying in Hope Of Larger
U. S. Estimate.
BY J. C. RoYLE.

Special Dispatch to The Star.
NEW YORK, August 9.-The hrst
Government report on the condition OF
the cotton crop threw a bombShel INTO
the camp of the growers, the textile
manufacturers and bankers ana ousl-
ness men In some sections OF the coun-
try. The effect on the growers and on
the bankers and business men will not
be particularly severe, but the report
complicated the already difncult posi-"
ton Of the textile manufacturers.
The Government estimate was l4,29l,-
900 bales. Many connected with the
trade had expected a forecast Of at least
$4,000, 900 bales. There IS no assurance
that the crop will be as high as the pre-
diction. The weather in some sections
has been favorable to the boil weevil
and encroachments Of insect pests are
increasing in some sections OF the
Southwest.
1t is true that the forecast is tenta-
tive. The Government authorities may
be wrong, and many textile man today
hopes this is the case. On the other
hand, the weather may still further re-
duce yield. Apparently the textile men
have misjudged the situation, as they
have done several times previously.
World Requirements.
In the 1929 crop year the chief
expert in this country fixed the con-
sumption of lint cotton and linters at
1888, 900 bales. In the previous year
1t was 1885 600 bales. 1t Is conserva-
lively estimated that there remains
carry-over Of 5,078,000 bales. II the
| Government forecast is correct this
means an available supply Of 1s,367.ooo
| bales.
| 1t is estimated the world needs
crop of at least Is 900 900 bales to sup
ply mill requirements and leave the
necessary margin of excess for emer-
gencies ALI these facts would seem to
| indicate higher raw cotton prices.
The textile men, hoping for report
of better than Is. O00. 600 bales and con-
/ sequent low prices, have held on from
purchasing during the time cotton was
low in the late, weeks. The British
manufacturers have bought fairly heav-
| lily and even took on additional sup
plies after the report was out and
prices up.
An advance in the price of raw cot
ton is pretty sure to bring q complaint
from the manufacturers and statements
that goods prices must be advanced.
Consumers Of cotton goods will OPP
pose any such advance bitterly, and in
creaseS in prices may serve to check
buying to decided degree. On the
other hand, failure to advance goods
prices viii cut the already narrow
margin OF profit Of the goods manufac-
! turerS.
Affects Auto Tire Field.
The advance in cotton also win have
an effect of beclouding still further the
situation In the automobile tire field
More poundage Of cotton than rubber ID
used IN tire castings. An advance In raw
cotton prices, therefore, win cut down
margins Of profit for the tire manu-
facturers. Most of these have recently
reduced tire prices and now are COM
| planning that they abe not making
money. Three prominent tire COM
panies reported moderate profits in the
first half year. but three others equally
| prominent suffered losses.
The small crop may affect retail
trade In some portions Of the South, bar
If the crop is small the price obtained
for It may compensate TO large extent
for its lack of tonnage The forecast
| contains nothing which may be of serv-
! ice in composing the labor difficulties
I between the New England mill owners
| and their operatives. In fact, It may
act to widen the breach between them.