Savannah morning news. [volume] (Savannah) 1868-1887, 1883-05-07
THE HOROSCOPE OF COTTON.
An Advance of One Cent in One Month
VIII it Go Higher?

Editor -HOrRlRg NelcS: 1t will be re-
membered that little over month ago
to be exact, on the 29th of Marcia let
ter from the writer appeared in these col
umns predicting an early and material
advance in cotton. The following Ian
guage was used:
Last fall the writer predicted drag
ging winter, followed BY much more buoy
ancy IN the spring, commencing about the
month of April. Provided the price did
remain low all the winter and permit the
great volume of the crop to be moved
than, with ordinary conditions of financial
ana trade prosperity, an advance in the
spring was confidently expected. Had
any material advance occurred previous
to the end of February the prospects of
the later rise would have weakened. But
there has been no such disturbing infiu-
ence; prices have continually dropped:
the bulk of the 1000. 900 bale croD is gone.
the time is at hand.'
The fourth day Of April proved to be
the lowest. On that day the price of June
contracts in New York reached 10 OS,
While middling uplands were quoted at 10
cents. From that point reaction set in:
gradual at first, but increasingly rapid,
until the last few days have been charac.
terized by no little excitement To-day
cotton at ii cents. A slight reaction sub
sequently took place, but we may fairly
say that full advance of one cent per
pound has been established.
The positions assumed in the article of
March 29th, as well as the conclusions ar
rived at, were freely ridiculed at the time
by individuals who could see no grounds
for an advance 1t win now be readily
admitted, however, that the circumstan-
fhRn nO1nfnd fhO ,1.
causes of the upward movement, namely:
the low price and heavy movement serv-
ing the double purpose of ridding the
country of supertluOuS cotton and enab-
ling the bull clique to buy large lines of
the summer months at cheap figures.
1t is now reported that the market is
''cornered'' for June, with a "a million
bale crop! and sapient New York brokers
are advising their customers all over the
country to transfer their June ''shOrt''
cOntracts-it positively makes me laugh
as write ito July and August! They
say to the anxious inquirers: "Gentle-
men, we are deeply concerned at the in
convenience you must feelin that frying
pan. We seriously suggest your getting
out with the least possible delay into the
tireW And-the advice is being followed!
1t scarcely seems necessary for me to
remark that the danger of corner in
L
might almost say that the risk of a
squeeze doubles each month from Nav
TO August, inclusive. If the green tree
has such a troublesome experience, what
will be the fate of the dry2
Is it not written that those hungerers
and thirsters after filthy lucre, who, not
having the fear of the Lord before their
eyes, and shutting their ears to the pru-
dent caution of the Wise Man when he
says, Don't sell what you haven't got.'
who nevertheless straightway went and
bargained to deliver in New York and
New Orleans, during the months of June,
July and August next tens, scores, six
ties and hundreds of thousands of bales.
is it not written, | say, that they shall at
the latter day haste and scramble to pay
twelve, thirteen and fourteen cents for
cotton, they judged themselves wise in
selling ''shOrt' at ten?
A close study of the situation shows
nothing to induce one to believe that the
bulls are satisfied with what they have
already achieved. An impartial, disin- |
terested observer like the writer must be !
convinced that we have as yet seen only |
the beginning. Doubtless there will be |
frequent periods of temporary weakness. !
Liverpool may evince more or less John |
Bull obstinacy. but the planter who has !
cotton held back for the summer months |
will get good price for it.