Business: Cotton

When the Department of Agriculture's estimate of the 1925 cotton crop as of July 16 dropped with a thud to 13,588,000 bales (TIME, Aug. 3), no little comment in the trade was occasioned. The report as of August 1 showed less startling changes. Condition had fallen off from 70.4 on the former to 65.6 on the latter date. Nevertheless, the crop was estimated at 13,566,000 bales—only 22,000 bales under the July 16 figure. Losses in Texas owing to drought have apparently been practically offset by gains in more easterly portions of the cotton belt.

The supply of cotton is still far from large. On July 31, 1925, there were on hand 1,610,455 bales, of which 866,259 were held by consuming establishments, 514,196 in public storage and compresses and 230,000 bales elsewhere. During the year ending July 31, home consumption of cotton amounted to 6,191,349 bales of lint and 651,065 of linters, comparing with 5,680,554 of lint and 536,738 of linters for the year ending July 31, 1924. Exports have likewise increased; during the year ending July 31, 1925, 8,195,896 bales were sent abroad, as compared with 5,772,000 bales for the year ending July 31, 1924.

Very obviously, the much-heralded 1925 cotton crop has been a keen disappointment, owing mainly to the Texas drought. But consumption is on the mend, and losses from the boll weevil have this year apparently run second in importance to losses caused by the weather.