392 



THE INDIA RUBBER WORLD 



[August i, 1903. 



THE TEXTILE GOODS MARKET. 



THE staple cotton market continues to be jostled about on 

 the horns df the bulls in the pit, who appear to have such 

 control of the spot cotton of the country, that they can manip- 

 ulate the near by options with ease and complacency. This 

 fact has been demonstrated a great many times during the past 

 month, when, although the trading was generally dull, the mar- 

 ket maintained its firmness, with surprising tenacity at times. 

 The latter months displayed a tendency to drag because of the 

 favorable crop news, but even such options have not been able 

 to keep out of the clutches of the bulls. About a week ago the 

 market took on a slightly stronger tone, and prices went soar- 

 ing, although without any cause to support the movement other 

 than the orders of the bull clique, until middling upland spot 

 touched 13.50, where it still remains. Under conditions of this 

 kind it is exceedingly difficult to forecast the future, and most 

 of the traders are moving very cautiously, while speculators on 

 the outside are holding off entirely. 



Domestic spinners have given very little support in the way 

 01 buying cotton, and their takings have been next to nil, 

 although consumers on the other side of the Atlantic are re- 

 ported to be showing more interest in spots. Rather than buy 

 at present prices the American manufacturers have been cur- 

 tailing their production in every possible way. Those that 

 have any cotton at all have been working their machinery on 

 part time in order to make it hold out until the new crop ma- 

 terializes. Those who have exhausted their supplies have in 

 most instances, closed their mills, as the only alternative under 

 the circumstances. Some of them, having run short of cotton 

 before completing their contracts, have paid as high as 16 cents 

 for a sufficient quantity to carry them through, and quite a 

 number have bought cotton at 14 cents. One large mill is 

 known to have covered its necessary requirements at 16 cents. 

 Of course there is no intention on the part of the owners of 

 these mills to increase their output until consumers show a de- 

 sire to pay a sufficient price for goods to allow the manufactur- 

 ers a fair profit on their product. The manufacturer cares lit- 

 tle what may be the cost of cotton if the market will settle 

 down to a basis that can be depended upon to remain station- 

 ary for a few months. In such a case they would buy cotton 

 and make goods for which the consuming public would be com- 

 p ;lled to pay the price asked, but this course cannot be pursued 

 when the price of cotton is likely to drop as soon as the mills 

 have covered themselves. Manufacturers that have closed 

 their mills and those that contemplate doing so are compelled 

 to take this course because they failed to appreciate the cotton 

 s tuation in time, and have not been able to secure the grade of 

 cotton which their machinery requires. Other mills, as fast as 

 they exhaust their stock, will be compelled to stop for the 

 same reason. It is simply and purely a cotton famine. 



The following table gives the price of cotton middling upland 

 spots at the ports of New York, New Orleans and Liverpool : 



New York. New Orleans. Liverpool. 



July 7 1 1. 60c. 13 \,c. 6.30,/ 



July 14 12. 20c. i23ic. 6.20a' 



July2i. 1275c I2^c. 6.40,/ 



July 28 13 50c. 1314c. 6.64^ 



That the rubber trade will be compelled to pay a much high- 

 er price for its textiles during the next year, seems now beyond 

 a doubt, and the manner in which they have been making req- 

 uisitions on the cotton duck manufacturers during the past 

 few weeks shows that no one knows this fact better than the 

 rubber people themselves. Last September, when the rubber 

 manufacturers were placing their orders with the duck mills for 



enough goods to carry them through the year, they made the 

 maximum limit much higher than ever before. There weretwo 

 reasons for this course. The rubber people anticipated a larger 

 demand for their goods in the first place, and furthermore there 

 was nothing to be lost by raising the maximum limit, so long 

 as they would not be compelled to take the goods in case they 

 did not require them. 



Whether or not they have needed all the cotton duck that 

 was ordered, mitters very little; they have taken all the duck 

 mills could deliver up to date, and are eagerly pressing the 

 mills for the remainder of their order— that is, all their con- 

 tracts call for. Rubber manufacturers who have been buying 

 as their requirements dictated, have had to pay in some cases 

 5 cents per pound more for textiles than they did the year be- 

 fore. I5y September 1, they will be in the market looking after 

 their supplies for another year, and it is not news to the rub- 

 ber people to announce that contracts will be made on a much 

 higher price basis. If they can cover their year's needs at a 

 lesser advance than 5 cents over old contract prices, congratu- 

 lations are in order, and the organization that neglects to make 

 a contract for the entire year, hoping to get his cloth cheaper 

 later in the season, will be assuming great chances. He may 

 get through the year by buying in a hand to mouth fashion 

 without paying any more than the fellow who makes a year's 

 contract, but if he does it will be because the bottom has 

 fallen out of the cotton market before the manufacturers cover 

 their raw material requirements, which is extremely unlikely. 

 Some of the cotton duck mills have already run out of cotton, 

 but they are meeting their contracts, which is as much as they 

 can do. 



It has been hinted in the textile market that contracts with 

 the belting and mechanical rubber manufacturers will be made 

 on an entirely different basis another year. From this, it is in- 

 ferred that the cloth manufacturers will ask the rubber people 

 to assume more of the responsibility than has been the case in 

 the past. The former look upon the old fashioned contract as 

 no contract at all so far as protecting themselves is concerned, 

 and hereafter they are going to ask the consumers to help carry 

 whatever burdens develop during the season. 



Prices of the various textiles used by the rubber trade have 

 not altered during July, but the market is exceptionally firm on 

 the basis of the following quotations: 



FABRICS FOR THE RUl'.ISER TRADE. 



Forty-inch Majestic C. C 7 \ cents. 



Forty-inch Majestic B B. B 6}{ cents. 



Forty-inch Majestic B. B t% cents. 



Forty inch, Elcaney 5^ cents. 



Thirty-six inch, India 6 cents. 



Sheitittgs. 40" Selkirk. . . . 7 1 4 , 'c. 40" Shamrock. .. 8}£c 



40" Highgate ... 5 5 + 'c. 40* Sellew 7/^c Ducks. 



40' Hightown. ..6}^c. 48" Mohawk. ...10 c. 40" 702. Cran- 



40" Hobart 6,'i-c. 40" Marcus. ..5 c. ford. ... 8 c. 



40" Kingstons. ..7>£c. 40" Mallory 5 c. 40" 8oz. Chart- 



39' Stonyhurst.. -Sl4 c - 36" Capstans. . ..4 c. res SJ-^c. 



39* Sorosis 5 c. Osnaburgs. 40" iooz.Carew.loJ^c. 



40" Seefeld 7>2C 4°" Iroquois 8}£c. 40" 11 oz.Carita. n^c 



The demand from the rubber boot and shoe manufactur- 

 ers for sheeting has been of an average character all through 

 the month of July. Those buying at the present time are pay- 

 ing no more money for their goods than they did during the 

 fore part of the month, but prices are very firm and in every 

 instance the full quotation has been paid. The market has 

 not superabundance of sheetings on hand, and with the curtail- 

 ment going on at the mill end, the tone of the market for cloth 

 is naturally strong. Deliveries are being made to the satisfac- 

 tion of the consumers so far as known, and the outlook for 

 business from the rubber footwear makers is all that the textile 

 manufacturers could ask for. 



