Evening star., 1939-08-29
1889 Textile Activity
Expected 10 Show
Substantial Gain
Increase Over Previous
Year Likely to Prove
IS to 20 Per Cent
Special Dispatch to The Star.


NEW YORK. Aug. 29-Although
aggregate textile activity in the final
half may be moderately under a
year earlier, because of reductions
in cotton and silk consumption, the
increase in the first half is expected
to raise the full year showing from
Is to 20 per cent above that of 1898,
according to current survey by the
Standard Statistics Co.
Such a gain, however, would only
partly restore textile company earn
ings generally, and returns for the
group as whole will be below aver
age until there is an appreciably
greater spread between costs and
selling prices.
The textile industry as a whole
has been operating at relatively high
levels for most of the past year. Ac-
cordingly, year-to-year operating
comparisons during the remainder
of 1889 will be made with a much
higher base than was the case in
the first six months, when textile
activity ran far ahead of the ex-
tremely depressed record of early
1888. Further gains in activity will
be more difficult to attain, and with
certain divisions now restricting out
put, it would not be surprising if ag-
gregate production for the second
half failed to equal the relatively
high level of year earlier. Any de-
cline, however, promises to be mod
crate. and on this basis the outlook
is still considered reasonably salts
factory.
Operations Curtailed.
Mill activity in the cotton divi-
sion will be held down by the Is
per cent curtailment in print cloth
production scheduled by producers
for the third quarter in an effort
to cut down the heavy mill stocks
which have been primary factor
in holding prices at unfavorable lev
els. Largely because of this cur
tailment cotton mill fiber consump-
ton in the final half is likely to
be about 10 per cent under that of
the first half and around per cent
lower than for the like 1898 period.
For the full year, however, fiber
consumption is expected to be some
10 to Is per cent higher than in
1898.
The moderate decline in cotton
consumption indicated over COM
ing months is not an unfavorable
development, as the print cloth cur
tailment should cut down mill in
ventories materially, and place pro-
ducers in position to benefit price
wise from continued active second
ary demand. Prices already have
improved moderately, but much fur
ther gains are necessary to restore
satisfactory profit margins, espe-
cially with higher costs in prospect
under the terms of the Wage-Hour
Act.
Depends on U. S. Program.
The cotton price outlook is still
subject to the influence of the
large Government holdings of raw
cotton and particularly to the de-
gree of success in preventing addi-
tions to these holdings by increasing
exports materially under. the ex-
port subsidy program. This program,
which became effective July q, pro-
vides for payment of IL cents
pound net weight on all lint cot
ton grown in the United States
and exported before August /, 1910,
if such cotton is sold for export
before July /, 1910. To aid cotton
goods manufacturers provision is
also made for equivalent subsidy
payments on exports of all prod
ucts conf Rining not less than so
per cent cotton by weight. While