Evening star., 1939-06-16
Cotton-Goods Output
Runs 80 Pei. Ahead
Of 1888 Figure
But Market Prices in
Staple Divisions Hit
Lowest Since 1888
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 16.-It is esti-
mated that production of cotton
goods in the first four months of
this year ran something like 80
per cent ahead of the correspond
ing period in 1888, and, with all due
allowance for a slowing down of
activity through the summer, it
would not. be surprising If output
for the full - months of this year
exceeded figures for 1885,,
Production last year dropped 20.5
per cent from the 1887 figures,
which was the highest total in 10
years, with the 1888 output amount
ing to 1902, 10000 square yards,
according to the annual compila-
ton of the Association of Cotton
Textile Merchants of New York.
The drop was attributed to period
of necessary inventory distribution
and adjustment of output to de-
clining demand. This occurred
chiefly in the first half of last year.
1t is also cited that lower 1888
activity was accompanied by wide
spread losses of Individual mill
units, suggesting that most of the
business was done at prices below
cost. Consumer demand was we'll
maintained. But the sole attrac-
ton of low prices failed to stimu-
late inventory replenishments by
the trade, and the primary market
was dominated by hand d-to-mouth
buying throughout the year.
Advancing Cotton Costs.
From the course of production and
prices, the survey adds, lit must
be admitted that trade elements
can SO far justify their avoidance
Of unnecessary risk taking" Mar
ket prices in the staple goods di-
visions, which account for more
than so per cent of total woven
goods production, have shrunk to
the lowest levels since the spring
of 1888, while cotton costs have ad-
vanced materially. Wage mini
NUNS must be advanced 20 per
cent in october by statute unless
the larger increase of 80 per cent
recommended by the Wage-Hour
Committee is made effective before
then.
An important consequence Of low
prices was the fact that exports
reached the largest total since 1882.
They amounted in 1888 to 319.634, 900
yards, compared with 236 ,25l 900 in
1887, an increase of 35.3 per cent.
Imports were sharply lower at 58,-
282 900 yards, compared with 147,-
100000, drop of 604 per cent. The
net market gain from these changes
was l72,43l 900 yards.
Drop in Spindleage.
1t is also emphasized that the in
evitable result of profitless opera
tion was a further contraction in
the physical structure of the indus
try. The drop in installed spindle
age was 7l7,865. bringing the figure
at the end of 1888 to Is 1886 $50, and
there has been a further decline
reported of around 100000 spindles
up to the end of April last. The
latest announced total Of something
like 25,680,000 spindles in place is
the lowest in 80 years. 1t is COM
parable with 25,81l,68 reported in
1906, when a period of expansion
began that carried equipment to q
peak of nearly 2S,00O,0OO in 1925.
Installation of new machinery at
1920 spindles in 1938-compared
with 772, ,724 in 1937-was the small
est in Is years, except for the mid
depression year of 1892 Monthly
average active spindles totaling 22,-
042 442. or 825 per cent of the ag-
gregate in place at the beginning
of 1888, indicated a new low, and
the associations survey predicts
that the current figure of around
22,500,000 should be the maximum
for the present period
Consumption of raw cotton last
year dropped to about 1905 900 900
pounds, compared with 1857 900 900
in 1887, a decline of 20.6 per cent.