THE COTTON INDUSTRY.

Press, Volume LV, Issue 16427, 22 January 1919, Page 7

THE COTTON INDUSTRY.

TO THE EDITOR OF "THB PBESS."

Sir, —Concerning your publication in to-day's issue of an interview with a Lancashire representative "of one of the largest cotton manufacturing firms," wherein he stated that "the raw material is scarce, and four times pre-war rates," and generally inferred that prices would advance still further for manufactured cotton goods in this market—the following extracts from a letter dated November 2nd, 1918, from a reputable New York export firm, who aro large handlers of cotton and manufactured cotton goods, give a very different view of the situation in America, and show that high prices are not always the result of scarcity of raw material: "Cotton.—A docided change has taken place in general opinion regarding the effect of peace on cottort prices. It is now urged that the withdrawal of enormous Government orders will seriously curtail consumption and that the export demand may not compensate for this on account of a continued shortage of tonnage. It is unquestionable that prices are abnormally high, and that with the period of deflation which will come sooner or later, cotton prices, in common with those of all commodities, must recede. Reports froni the South, too, have aroused expectations of a larger crop than was expected on Octqber Ist, and some predictions now point to a crop of possibly 12,500,000 bales. To sum up the situation: cotton is piling up in the South, stocks are large, exports are small, speculation is lacking." "Prices as last reported are as follows: 'Spot,' 29in (143 d); December delivery. 27Jc (13|d): January delivery 26|c (13jd), March delivefd 26Jc (13d); all f.o.b. New Orleans. The visible supply of American cotton at this writing is 2.851.212 bales, comparing with 2,543,000 Iwles at this time last year. Total takings of Americnn cotton for this season have been 2,156,877 bales, acainst 2,543.037 bales for that period of last yenr." "Cotton Goods.—Business in cotton soods is Bomewhat restricted, domestic buyers not being so eager as formerly to place orders beyond current necessities, as it is expected that the next revision of prices Will be downward, in keeping with the decline in raw material." Cotton has doubled in price since 1914. The increase hn* not been four times pre-war mtrs.—Yours. etc.. ANDREW FATOBAIRN. Christ-church. Jnnunrv 21st.