30 
BULLETIN 1445, U. S. DEPARTMENT OF AGRICULTURE 
spinner depends on many things. If spinners have bought heavily 
for early fall months' delivery, the first ginnings move as rapidly 
as they can be classed, assembled in even-running lots, and billed out. 
Such shipments may be made within 10 days after the cotton is 
ginned. Later in the fall, when there are many grades, it may take 
as much as 75 days to make up lots of the scarcer grades and deliver 
them to distant markets. 
FINANCING COTTON STOCKS 
About 80 to 90 per cent of the American crop is harvested within 
the three months, September, October, and November. It is con- 
sumed in fairly uniform quantities throughout the year. The visible 
supplies are the quantities of cotton on hand in trade, and they 
indicate the amount of money tied up on cotton pending mill 
consumption. 
Table 6. 
-Quantity, price, and value of world's visible supply of American 
cotton, by months, August, 1919-July, 1923 
Month and year 
Visible 
supply 
Price 
per 
pound 
Approxi- 
mate 
value 
Month and year 
Visible 
supply 
Price 
per 
pound 
Approxi- 
mate 
value 
1919-20: 
August 
Thousand 
bales 
2,905 
2, 780 
3,497 
4,231 
4,609 
4,722 
4,840 
4,543 
4, 315 
4,002 
3,414 
2,933 
Cents 
31.50 
30.33 
35.39 
39. CO 
39. 73 
40.46 
39.49 
40.63 
41. 73 
41.02 
40.59 
39.59 
Million 
dollars 
437 
403 
592 
801 
875 
913 
914 
882 
861 
785 
662 
555 
1920-21: 
Thousand 
bales 
2,624 
2,764 
3,519 
4,273 
4,846 
4,822 
4,707 
4,473 
4,434 
4,512 
4,454 
4,108 
Cents 
34.78 
28. 25 
21.38 
17.84 
14.63 
14.05 
12.97 
11.19 
11.01 
11.55 
11.16 
11.14 
Million 
dollars 
436 
September 
October. 
November 
December 
January 
February 
March... 
373 
October 
November 
December 
January 
February 
360 
364 
339 
324 
292 
239 
April .. 
233 
Mav 
249 
June... . 
238 
July- 
July... 
219 
The visible supply is that reported by the New York Commercial and Financial Chronicle for the last 
of the month The value is obtained by multiplying the supply by the average price for the month in 10 
spot markets, considering bales as averaging 478 pounds net. 
The bulk of the visible suply is in the hands of cotton buyers, 
largely in the centralizing markets. The banks in these markets and 
in the large financial centers furnish most of the mone} r . Ware- 
house receipts for classed and hedged cotton constitute the collateral 
for the loans. A large part of these loans is in the form of bankers' 
acceptances running from 30 to 90 days, though some of the indebted- 
ness is carried in the form of call loans. The security is considered 
equal to prime commercial paper and bears a low rate of interest. 
METHODS OF FINANCING THE GROWING OF THE COTTON CROP AFFECT 
METHODS OF MARKETING 
Credit plays an important part in the growing of cotton. Ac- 
cording to a study made by the Federal Reserve Board, 20 more than 
$500,000,000 is advanced to produce a 10,000,000 bale crop the mone- 
tary value of which is about $1,000,000,000. The advancement of this 
credit begins in the late winter and increases as the spring and sum- 
20 United States Federal Reserve Board. 
Cotton. 1923. p. 15. 
Financing the Production and Distribution of 
