FACTORS AFFECTING PRODUCTION OF LONG-STAPLE COTTON, 7 



PREMIUMS FOR LONG-STAPLE COTTON. 



Notwithstanding their greater utility the new early-maturing long- 

 staple varieties can not be expected to place the long-staple industry 

 on the same basis as the short-staple industry, and this would not be 

 desirable. The greater care that is necessary in maintaining long- 

 staple varieties, as well as in growing, handling, and marketing the 

 croj). must be compensated by a higher price for the jn-oduct or the 

 precautions will not be observed. The more careful and mtelligent 

 planters will not continue the cultivation of long-staple cotton and 

 permanent long-sta})le communities wall not be established. 



Nevertheless, the difl'erence in prices between long and short staples 

 need not be as large as was necessary formerly, when only the old 

 late-maturing varieties were available. Figures furnished by an asso- 

 ciation of New England manufacturers, covering a period of years, 

 showed that the cost of their supplies of long-staple cotton had been 

 about 60 per cent higher than the prices paid for corresponding 

 grades of short staples. With the earlier and more productive long- 

 staple varieties that are now available, smaller premiums, perhaps 

 not more than 30 per cent on the average, may be sufficient to de- 

 velop and maintain a long-staple industry. No doubt the actual 

 prices will continue to fluctuate with the seasons in accordance with 

 the general relations of supply and demand, but unless a fair average 

 is mauitained the industry will not attract the particii)ation of the 

 best class of farmers. 



PROSPECTS OF LARGER DEMANDS FOR LONG STAPLES. 



If the commercial conditions that determine the demand for lon^- 

 staple cotton remam the same in the future as in the past only a 

 limited utilization of the new varieties is to be expected. With a 

 strictly limited demand a condition of overproduction must be soon 

 reached, prices will decline, farmers will be disaj^pointed, and many 

 of them will go back to short-staple varieties. But in reality the 

 demand for long staples is not strictly limited. It is rather the lim- 

 ited and uncertain supply that has restricted the use of long staples. 

 There is every reason to expect a greatly increased consumption if 

 long staples can be supplied more regularly and cheaply, and this is 

 made possible by the new earl3^-maturing varieties. Of course, too 

 rapid expansion of long-staple production may cause a slump in 

 prices, but a cheap and abundant supply would have the indirect 

 advantage of encouraging use and thus tending to establish a larger 

 permanent demond. 



Increased demands for long staples are to be expected on account of 

 their industrial superiority over short staples. Short-staple cotton 

 is only poorly adapted for many of the purposes for which it is now 



ICir. 12a] 



