The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-28
EXPORT SLUMP
BAR TO Squirt
IN LINT VALUES
Prices OF 50 Per Cent
Since August, as Other
Staples Advance.

By Times Special
NEW YORK, Feb. 28.-Cotton's
reactionary price trend since last
August, in the face Of brisk up
ward movement for farm products
generally, today was ascribed,
among other factors, to the increas-
ing competition encountered by the
domestic staple in world markets.
This is reflected in decimated ex-
ports to foreign consuming areas
and the concOmitant failure to
effect a further stable reduction in
American stocks despite 100000
bale contraction in last years har-
vest.
Coincident with these develop
ments, resulting in the smallest
world consumption of American cot
ton in years, the price of the COM
mOditg receded from its three-year
high Of 1912 cents last August to
its current level of around 1910
cents. a decrease of 5.4 per cent.
Other farm products advanced from
63.1 per cent of the 1868 average
last August to approximately 76.l
per cent of that mean at the close
Of last week, an increase of about
Is per cent.
Price peg" Blamed
Different factors, incidentally
were responsible for the conflicting
price trends. In the case of cotton,
the decline may be attributed to the
premium, due to government loan
pegs" commanded by the domestic
staple. which diverted world de-
mand TO the competitive Indian and
Brazilian growths.
With respect to other commodi-
ties. the advance, principally in
grains, was due to the shrinkage in
harvestS Occasioned by last sum-
mers drought, which practically
expunged SURPRISES OF many crops.
Effects of the price disparity
which restricted cotton exports dur
ing recent months are manifest
from statistics relating to foreign
supplies and consumption of the do
nestle product, made public by the
New York Cotton Exchange Service.
Stocks at the close of December,
last. amounted to 2,76300O bales,
more than I,5O0.OOO less than at the
end of 1888 or 1882, while consump-
ton for the five-month period from
Aug. l to Dec. 81, last, totaled p
$50. 900 bales, a decline of nearly
$50. 900 bales from the average OF the
two preceding years.
Exports Lowest in Years
At the same time, exports for the
season to Feb. IA have dwindled
perceptibly, amounting to only
3.O56.OOO bales, contrasted with
5.226.OOO bales in the corresponding
period of the preceding season and
5.377,OOO bales in the 1928 year.
This development conceded with
substantial increase in the export
volume of both Indian and Brazilian
growers. So pronounced did the
shrinkage become in domestic ship
ments that exports for the week
ended Feb. IA totaled only 5000
bales. against 147,000 a year ago.
Another factor in the price re-
cession was the contraction in do
nestle cotton mill activity that got
under way in May. 1884, as a re-
suit of overproduction in the pre-
ceding year, and which persisted
until after the strike of last Septem-
Der. Since then output has recov-
cred to a considerable extent. cur
rently exceeding the average for all
of 1894. Operations in the industry
at present, by the way, are about
IS per cent of nCrmal, with in
coming orders reported once more
in excess of production after several
weeks of lethargy.