Textile Gloom

While the cotton planter rejoices, the textile-mill operator is faced with additional trouble. The cause in both cases is a sharp rise in cotton prices.

The Government's estimate of the cotton crop, based on the condition of 59.3 on Sept. 1, was 12,787,000 bales. When, on Sept. 16, the Government revised its estimate, the condition figure had fallen to 55.4, and accordingly the new crop estimate was placed at 12,596,000 bales. The sudden cut of 191,000 bales in the estimates, when announced, precipitated a small-sized "bear panic" on the Cotton Exchange, wherein a good-sized "short interest" hastened to cover at smartly rising prices.

Meantime the cotton-mill owner, who had become optimistic, saw prospects of being able to sell fabrics spun of 21-c- cotton, received a severe jolt when the price went up to 24-c-. The stagnation in the textile trade has been due to a "consumers' strike" against the high prices charged for cotton goods. The refusal of consumers to buy at high prices cannot be changed until the raw cotton itself declines. Retailers refuse to stock up; jobbers are wary; and as a result unemployment is prevalent in the New England mill towns.