Evening star., 1938-05-23
RAY0NPR|CESSAG
T0ALL-T|MEL0W
Competition and General
Business Depression
Are Major Factors.
sr. eta! Dispatcn to The Star.

er.eia! Dispatcn to The Star.
NEW YORK, May 23.-We may lay
the rather deep cut in rayon weaving
yarn prices to the depth of the current
general business depression, or we
may lay it to the increasingly IN
tense competitive situation among the
leading textile fibers. Probably both
factors have had hand in forcing
the rayon price down another notch
to an all-time low.
The rayon industry has attuned
itself to the decline in demand more
quickly than any other branch Of the
textile industry. But 1t was also
true, until the cut in the end Of
last week, that price declines in other
textile fibers had improved their COM
petitive positions in respect to rayon.
Although cotton, wool, silk and rayon
go into different types of fabric, there
is always competition in the sense
that the consumer may switch from
rayon fabrics to cotton, or wool, or
silk. Style alone may be the deciding
factor, but, when style and price lean
the same way, the urge is doubly
strong.
Rayon output in the first three
months of this year was the smallest
for any quarter since 1884, aggre-
eating 57,5O0,00O pounds, as compared
with 7380O,000 pounds during the
final quarter of last year and 76.-
100000 pounds in the first quarter OF
last year.
About Equals Demand.
April production of rayon was about
equal to the consumer demand for the
period. Already at a very conserva-
tive rate of production and shipment"
says Rayon Organon, published by the
Textile Economics Bureau, Inc, "rayon
deliveries during the next several
months are expected to remain in the
present range. During the intervening
period between now and the time fall
goods go into production, the market
will probably experience minor upward
bulges but none of a lasting nature" :"
Looking back over the textile record,
1t is notable that 1897 marked the first
time in II years that rayon failed to
improve its relative position among
textile fibers. Silk is the natural COM
petitor of rayon, because it was rayon
that backed silk out of the lions share
of the broad-weave market and rele-
gated it to the hosiery mills, where silk
appears to be safely intrenched, be-
cause of rayon's lack of elasticity. In
the first quarter Of this year, IS per
cent of the silk consumed in the
United States was taken by the hosiery
mills.
Use of Cotton Jumps.
But, if we take our cue strictly from
the figures. it wasn't silk that gave
rayon its setback last year, it was cot
ton. Cotton consumption set new
postwar high record in 1887. On q
poundage basis cotton accounted for
SO per cent of all textile fibers used
last year, and all fibers except cotton
showed losses both in poundage and
in percentage of the aggregate from
1886 to 1887.
During 1887 wool hit the third low
est percentage of total fiber used since
1920, at 81 per cent; rayon slipped
down to SO per cent from rs per cent
in 1896, silk was at the lowest per-
centage since 1921, at 1.2, and linen
held at an eight-year low Of 0.8 per
cent.
Cotton's onward march in textiles
for apparel use is directly traceable to
two factors; first, the consistent pro-
motion and smart styling which have
been so ably fostered by the Cotton
Textile Institute; second, the low
price at which the fiber is currently
available. A year ago cotton was 1914
cents a pound. with comparable fig
ure of 8la cents today. The base grade
of rayon weaving yarn was SO cents
a year ago, and now has been reduced
to 40 cents. Meanwhile, wool has
come down from $1.13 pound to
771a cents, and silk is down to $1.63,
against $1.8612.
While cotton's comeback in apparel
use has undoubtedly cut into rayon's
bailiwick, silk is reaching point
where it threatens to do the same.
In 1929, with rayon weaving yarn
about dollar pound, silk f1uctuated
around the S. level. In 1880 silk broke
below 50 q pound and it hasn't been
above that level since. In fact, it
scraped pretty close to the 81 mark
in 1882, 1888 and 1884. A progressive
increase in the use of silk for weaving
purposes is always indicated when the
price slides below $3.50 a pound, and
at a dollar it could recapture some of
its old market from rayon.
(Copyright, 1881