Evening star., 1938-08-09
TEXTILE INDUSTRY
REACTS QUICKLY
Rayon Yarn Shipments Hit
Fast Pace-Other Mills
Enjoy Brisk Trade.
BY ]. G. DONLEY.
ptcial Dispatch to The Star.

OF the textile industry is q further
indication of the ability-acquired
through caution and swift action in
recent years Of quick shifts In the
direction of the general business
trend-of consumer goods lines to take
new tack on short notice.
Most striking of all is the rapid
upturn in rayon yarn shipments from
June to July. But cotton and woolen
mills have enjoyed similar, II more
moderate spurts, with cotton mills now
more active than at the beginning Of
July. The upturn in woolen mill ac-
tivity, which began in June, gained
momentum during July and has been
extended thus far in August.
What has happened in rayon is to
a certain extent typical Of other tex
tiles. According to Rayon Organon,
publication of the Textile Economics
Bureau, Inc, the daily rate of ship
ments Of rayon yarn by American pro-
ducers during July was the largest
for any month in the history of the
industry, being almost double the June
shipments. The publication says that
the sudden favorable change from
mid-June to mid-July "can only be
called amazing"
Yarn Shipments Jump.
As measured by the Organon's in
dex, the daily rate of yarn shipments
jumped to 843 for July 1923-l925
equals 1000. as compared with 473 for
June. In July. 1887. the index stood
at 697. and the yearly average for
1887 was $50. To meet the sudden
demand producers had to draw upon
surplus stocks, 80 that, at the end OF
July, such stocks were equal to 81
months supply. against 3.9 months
at the end Of June Actual poundage
stocks held on July 81 we're about
equal to total holdings at the end OF
1897.
The trade explains the practical
doubling Of shipments during the past
month as due to a combination OF
causes: First. improvement in gen.
eral business psychology following the
adjournment Of Congress and the rise
in stock prices; second, the fear that
yarn prices would advance; third, a
normal seasonal increase in demand
for fall fabric production, accentuated
by growing popularity of rayon and
rayon-mixture fabrics; fourth, a
scramble by converters to buy up the
small available supply OF rayon fabrics
at the prevailing prices below cost of
production. At the same time, firm
orders were placed for fabrics for later
delivery at prices favorable to the
buyers.
Domestic Rayon Low.
Production Of rayon yarn by domes-
tic mills for the second quarter of
this year was the smallest for any
three-month period since 1884. The
sudden increase in demand is ex-
pected to raise third-quarter produc-
ton substantially above the low Sec
ond-quarter figure. Production for
the June quarter amounted to S.
100000 pounds. compared with ST.
100000 pounds in the first quarter
and quarterly average of $4,000 900
pounds for the year 1887. Production
hit the years high in the third quar-
ter OF last year, with an output of
S2.600 900 pounds. but the fourth quar-
ter saw reduction to 73,800 900
pounds.
In way, the rayon industry is
unique. for no other synthetic product
has ever had such a rapid growth in
competition with, not one. but several
natural products. For rayon has COM
peted, from the start almost. with cot
ton. wool, linen and silk. Since 1929
world production Of rayon filament
yarn has practically trebled. while
production of staple fber-which is
f1lament chopped into lengths of about
IL inches so that it can be spun on
cotton machinery-more than doubled
from 1885 to 1887. and in the latter
year was more than 80 times the
1882 output
Helped by the rather specta acular
increases in production in Japan and
Germany. world production of rayon
f1bers last year threatened to displace
wool for third place on the textile
roster. The combined total of 1909
100000 pounds If rayon f1lament and
rayon staple fiber in 1887 compared
with 1880, 100000 pounds of wool. In
1929. wool production was only 2,000,-
600 pounds less than last year. while
total rayon output amounted to only
442,000,o00 pounds.
tcopyrisht. 1881
Textile World Analysis,
NEW YORK. Aug. 9.-Textile
Worlds index of textile mill activity
for June gave the first statistical en-
couragement the industry has had for
months. 1t showed slight rise (6 per
cent? over the previous month. This
contra-seasonal trend was definitely
due to the better tone which had Just
started to set in late in June; however,
the real effect of the improvement
will not be statistically visible until
July figures are available. June ac-
tivity was also encouraging in that,
although sharply (34 per cent below
the corresponding month last year, 1t
was only 6 per cent below a normal
June Q924-3l average). The index
for the first half of the year was 40
per cent below the first half of 1887
(Which was phenomenaD, and 20 per
cent below the first half of q normal"
year.
Textile Worlds price index numbers
registered advances in July in raw
cotton, cotton yarns and gray goods;
in raw wool and tops, and in silk. All
others remained unchanged except
colored cotton goods, which declined.
Based on 1926 average as 100, price
indices for July with change from the
previous month are as follows:
Cotton-Raw cotton, 80 (up ~;
yarns, 48 Cup 81: gray goods, so
Cup 81; colored goods, ST (down ~.
Wool-Raw wool, SO Cup -; tops, SO
(up ~: yarns, "a (unchangeO; wool
cloth, 80 (unchanged. Raw silk, "a
Cup 81. Rayon, 21 (unchanged).
Rayon Firm Optimistic.
CLEVELAND, Ohio. Aug. 9 (Spe-
ciaD Hiram s. Rivitz, president Of
Industrial Rayon Corp. upon being
f. - A.