SEA ISLAND COTTON INDUSTRY. 6 



During this same year the consumption of Egyptian increased practi- 

 cally 21,000 bales (500-pound equivalent), and consequently it may 

 be concluded that not only the entire loss in consumption of extra- 

 long staples but the increase in Egyptian was at the expense of Sea 



Island. 



CAUSES OF DECREASED CONSUMPTION. 



In looking for the causes of this lack of consumption many reasons 

 have been advanced by those engaged directly in growing or in selling 

 or in manufacturing Sea Island cotton. The reasons given by differ- 

 ent interests sometimes conflict, and mistaken ideas have been 

 advanced in a few instances, but there is substantial agreement among 

 all interested parties as to the essential facts in the case. 



There is room for a difference of opinion as to the relative impor- 

 tance of the different causes for the falling off in demand for extra- 

 long staple, but it seems reasonable that all of the following causes 

 have contributed toward the diminished use of Sea Island cotton: 



(1) Tlte deadlock of 1912-13. — In dealing in Sea Island cotton there 

 is no " futures " market, as there is for Upland or Egyptian. Spinners 

 desiring to purchase their supplies against sales of yarn, which are 

 frequently made for a year in advance, must buy Sea Island cotton 

 outright, or else find some dealer who is willing to assume that risk, 

 and sell contracts for the delivery of a definite number of bales per 

 month during the time covered by the agreement. 



In September and October of 1912, early in the cotton season, 

 spinners were buying Sea Island at the prices then prevailing, paying 

 about 23 cents for Extra Choice Georgias. The demand was not 

 strong, but the crop was late and there was no pressure to sell, so 

 prices were easily maintained. Then in November came the Census 

 Bureau's report indicating a crop of approximately 70,000 bales for 

 the year. The better-informed farmers and small dealers decided that 

 the crop was short and that the price would advance, so they resolved 

 to hold for higher prices, which resulted in an immediate advance in 

 the primary asking price of 2 or 3 cents per pound. Accordingly, the 

 cotton buyers and exporters found themselves unable to buy cotton 

 at the price which spinners were willing to pay, and they therefore 

 refused to sell spots or to make contracts with mills for future delivery 

 at the prices which mill men offered. In short, there developed a 

 deadlock in the market beginning in November which lasted until 

 early spring. 



The spinners, who considered their margin of profit as already 

 narrow, regarded this advance as an imposition on them by specu- 

 lators and turned to other sources to look for their supply of raw 

 material. They had already been experimenting with the new 

 Egyptian variety known as Sakellaridis, and naturally turned to that 

 and to brown Egyptian for their supplies of cotton. They bought 



