Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-02-21
THE FLEECY STAPLE
An Hour Passed In the New York Cotton
Exchange-EnOrmOus Operations
of the Past
Ten Days-Pen-Pietures of the Cotton
kings-OpinlOns and Views ON
the Crop.
New York Cor. Atlanta Constitution. 18th.

i New York Cor. Atlanta Constitution, 18th.
d For once, If never before or again, the
| Southern staple has come TO the front il
New York and challenges universal at
D | tention.
Y The enormous operations of the past ten
. days. agEregstIpg. according 10 record. Ovel
4 / two million bales and really over three mil-
. lion. and representing transfer q values
Z / equal u SI5OCOO,OJO, or, counting both
Z. ways, $500 900, 900, have startled even the
= Oldest operators and provoked general in
. quiry.
At the Cotton Exchange everything was
boiling when / dropped in to-day. The din
was deafening, and hung like a cloud of
D clamor over sea of pale and desperate faces
, upturned. Men rushed to and fro as if they
were mad, shouted hoarsely and, to my ear,
inarticulately, buying selling millions
2 worth of property by nod, shrug, and ex-
| pressing, in the violence OF their gesticula-
tions and the furious rush of their work, the
emotions, the hopes and the distractions. of
I the vast constituency that, hidden in the
towns and country Sides hung trembling on
the echoes of their uproar.
! Here and there was a tranquil and self
contained figure, moving quietly amid the
storm and commanding confidence and re-
spect through masterful silence and serenity.
On bench, doubled up as if in pain, look
ing for all the world like cross between a
countryman and Jew, sat Sol Ranger, the
audacious operator who cornered the En-
glish spinners last August and commanded
for thirty days the supply OF every mill in
Christendom. He never said word, but
looked out YEARLY upon tine turmoil, hold
ing the same changeless front whether he
| was bleeding at every pore or amasslng
money at every throb OF the pulsing crowd
before him-wearing sort of contempt
IL. 20 g L.,
| meath II. John 1nman moved through the
| crowd, square-shouldered, erect and poised
his handsome face lit with a smile, giving a
pleasant word here and there, noting the
| drifts of the comments and watching the
work of the brokers. Mr.. Salter, of Latham,
Alexander & Co., very sphinx, silent, i'm
penetrable, absorbing everything and giving
out nothing, with strong bull contingent
| behind him, watched their interests soberly
and coolly, and 1 fancied, with a shade
| of anxiety-managing his brokers with
a sign or whispered word. Lehman,
! wiry, determined little fellow, who has put
Israelite blood to the front in the cotton
| world, was another quiet" one, working out
his anxiety through his fingers, which were
clinched, az if he had all the crop in his
hand, and was trying to get away. There
were a few other veterans who held them
| selves together, but outside OF these the ring
| was bowling woodworking, shouting and
suffering. Dr. Westmoreland once expressed
the opinion, while looking at the Stock Ex-
change, that all brokers were crazy. 1t GER
tainly looked az if the mind OF no man could
stand the racket of the cotton ring and still
sit enthroned. In and out of the cotton
room l got some opinions about cotton and
the market, which l append herewith.
l asked John C. Latham, jr., the senior of
the firm of Latham, Alexander & Co., what |
he thought of the market
A. 60. fhn adj fa ma bat / II v,0fI
know. There are several collateral issues |
that have disturbed it lately, but in time it
must act on common-sense principles and in |
dependent OF manipulation"
"What are these principlep~
"Why, simply two, a decreased crop and an
increased consumption. The crop will not, |
in my opinion, go above five million five hun
bred thousand bales, and will likelier 90 be-
low. We have sought the most trustworthy
advices that years of experience and ac-
quaintance give US, and without exception
they put the crop between five and five and J
a half million. At the best this leaves it I
over a million bales short. Now Ellyson's
circular before me here puts the increased
consum ption of the mills of England and the
continent at six thousand bsles per week.
This is three hundred thousand extra bales
needed for the year. The increased demand
IN this country is at least one hundred and
fifty thousand bales. Mr.. Atkinson in his
Atlanta speech put it at two hundred and
thirty-fye thousand. This added to the ex-
ira foreign demand makes the extra con-
sumption four hundred and fifty thousand
bales with a shortage of at least one million,
and the bales this year average twelve pounds
less than last year. That is the situation,
stripped Of all speculative or outside infiu-
ence. Sooner or later the market must get
on its merits aud the question OF supply and
demand regulate the price. When this is
dOue the f1rica Inuaf On nm ~
what are the influences that have kept
the market DOWN."
an the first place, it was overbought-
Everybody rushed in to buy early in the sea-
son, and especially the southern contingent,
which is not generally strong holder. All
heavy movements either way must be liquid
ated, The liquidation of the excessive buy {
inc moverss,.s- MAS hastened by the influence
OF the enormous stock that had been accu-
mulated in the hands of actual owners who
held for higher prices. As the market started !
down, weak or timid holders went out, and
their cotton was put on the market. The
general liquidation had commenced, and the
more cotton was offered the lower it went |
and the lower it went the more holders were
forced TO sell. The financial troubles in
Paris, the caution they impaired TO London,
The demoralized condition of the produce
trade here-all these conspired to help the {
downward movement" q
''Do you think the bottom has been
81 think the liquidation is about over. 1t ;
las been a wonderful unloading. The sales
'eported at the Stock Exchange in two
weeks amounted to over two million bales,
md there is fully one-third of the sales made :
hat are never reported. Not less THAI three Il
million bales have been sold in the past ten a
lays or two weeks. In my opinion the past
Ias been entirely wiped out, and the market
s now unembarrassed by its influence The 81
arly and excessive buying has been followed n
y an equally strong selling movement, and Il
he price of cotton will be governed by legiti- v
nate influences"
'You think, then, the price will go up?n q
81 do not say it will go up Immediately. n
movement up or down must spend itself O
ully. 1t is just like starting down hill, it o
oespt stop naturally until it gets to the
ottom. My opinion is that we have about NJ
cached the bottom. II go there will be !,
eaction, sharp one and legitimate one g
he crop is heavily short and the consump- u
ion is heavily increased. There is not an
lie spindle to-day in the world, and none "
kelly to be idle. The daily receipts are
ght and the end is about in sight The n
uestion of heavy stock IN New York or in {.
america will not influence the market except a
D assist in its temporary manipulation q
What does it matter where the stock is held? u
liter all it is simply question of supply
nd demand, and 1t must be tried on this. ii
Whether the stock is held to-day in Hoboken "
r tomorrow in Liverpool, makes no differ I
nee except on early speculation. The only Il
cal important thing is how much cotton is g
where it is held. The spindles
i'll seek it when they need it-no matter &c
here it is held, and they are bound to need n
need it all, and need more before we see al
mother crop" 10
Mr.. Latham says: at must not be thought ir
lat all the men who have sold here lost On III
lie contrary, many of them have made fo
oney. The losses have been heavy, of
,urse, but not OF such nature as to make y,
rious trouble" ~
Another gentleman of position says: 1.-THE =;
herent strength of the market is demon 9.
rated by the fact that over two million :" -
ales have been thrown on it at time when h.
Iere was general suspicion and trouble in =,
lancial circles, and only drove the price -
own a cent Much of this cotton-indeed
e bulk of it-came on the market in the M
ost demoralizing way. 1t was either sold VI
men whose margins were out, or by ne
okers who had failed and it was conse- no no
Iently 10 be sold at any sort of sacrifice trC
nd yet every time the pressure was lifted 60
e market recovered, and its total depres- Fl
on doesn't amount TO more than a cent" Br
"How has the heavy stock affected the BSy1
arket?" ali
ain NO essential way, but in a speculative iro
nse. The English spinners have been try
g to bluff the holders of American cotton,
ID have succeeded. Owing to the heavy ate