CORNER IN COTTON

Otago Witness, Issue 2572, 8 July 1903, Page 15

CORNER IN COTTON

NUMEROUS MILLS CLOSE DOWN.

LONDON. June 29.

Mr Brown, a New Orleans speculator, backed in America, New York, London, Liverpool, and Antwerp, is organising a corner of the United States cotton crop.

The Standard's New York correspondent says the trust will practically control the entire spot supply of cotton. The mills in New England are closing down, and half a million spindles will be idle in Rhode Island.

The Lancashire mills stop on Saturdays and Monday-. Some Oklhani, Rochdale, Burnley, Bury, and Bolton mills have closed. Liverpool and Manchester are doing a minimum amount of bti'-ine.s 1 -. July 2. Liverpool and other centres have shipped cotton to America, hoping to break the corner. One thousand bales have arrived, and another 1000 are due in a day or two. NEW YORK, July 1. The Fall River cotton manufacturing corporations of Rhode Island are curtailing their productions. One will run only half-time till September. There are now 8000 operatives and 830,800 spindles idle. The reported cotton coiner wa» the topio of conversation in local softgood circ-let. today. It appears that the totton market has been gradually rising for the pa<-t four or five- month*, but the advance ha 1 ; been nioie acute within the last ax week*. La't English mail brought adxics from aH the leading manufacturers (if Mum hc~toi goods announcing increased rate-, and dec'ining <o execute oider-i on the old ba^if-. The initial cau^e of the lie is the shortage in both the Egyptian and the American cotton (iop-, and the repoited " corner' 1 i-> .-iippc-cd to be the chiuax.

The market advance is w-c-ll illustrated by the price of American middling, which three month* ago stood at 4 40d. English advices dated May 23 showed an advance to 6.30 d, and to-day' « nrico i 1 - at least 7 50d.

A lead\ng line like Hoi-rook*- fleeting shows a 6 per oont adtanoo within the la«t pix week=, the present price for Horrock'^ A being 4-jtl. One 1 warehouseman remarked that after the American wai he had known

Horrock's to go up to 14d, so that there was plenty of room for a rise to this poiivt. As to the future trend of the market, in the absence of definite information, the opinion of local warehousemen differs. Some think that the- "corner" cannot hold, and that a slump in prices will probably come, and one man has backed his belief by ceasing to cable for further stocks. On the other other hand, the opinion is held that the present high range of prices, with a probable advance, will continue for at least another 12 months, in which event all Manchester goods, especially calicoes, flannelettes, sheetings, and linens will be appreciated in value. Some houses have already advanced their prices, and others are not anxious to sell pending developments. Stocks held locally are net heavy, and the poods coming forward show an increased cost, some materials having advanced 75 per cent, within the last three months. Another interesting it-em of news received by the la»t mail is that, cuing to sonie> disease amongst the silkworms, the price of raw silk has advanced 60 per cent. A Manchester correspondent of the Sydney Morning Herald states that J. and P. Coats (Limited) and the English Sewing Cotton Company have jointly and simultaneously issued revised lists 6howmg substantial increases in the prices of sewing and crochet cottons. This course is necessitated by the present high level of the raw s'ap-le, both American and Egyptian, whifh is about 50 per cent. abo\e the nominal rate.