The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-08-03
BAGGING IN A CORNER.
ANOTHER SHARP ADVANCE IN
COTTON COVERING.

Savannah Dealers Compelled to
Accept the Advance and Buy at the
Pools Terms-What They Say About
the Matter-The Stock About Run
Out and Planters Getting Anxious
Cotton Ties Also Advancing.
The st. Louis dispatch to yesterdays
MORNING NEWS confirmed the rumors
that a jute bag syndicate has been formed
to run up the price of bagging. But it did
not need to be confirmed in that way The
factors in this city knew that deal had
been contaminated for they are now with
out their usual stock Of bagging, and plant
ers are clamoring for it. Interviews with
four of the largest firms of factors yester-
day developed the fact that they are en-
pool, and the price is rapidly adv ancing.
A leading cotton factor on the Bay said
that the factors started to hold out hoping
to sec he pool break or the price decline,
and this view was shared by all the factors,
but as the demands from the interior began
| to pour in, exhausting the stock on hand,
the price began TO rise, and yesterday
another advance was made.
YESTERDAYS ADVANCE.
A large Boston house telegraphed yester-
day to a firm of Savannah factors as fol.
lows:
BosToH, Aug Q, 1888
Have withdrawn from the market for the
present.
Inquiry Of a leading New York house
yesterday as to prices, led to the following
reply by telegraph
New YORK, Aug. 2, 1888.
We quote to-day ia b bagging at 1o]4 cents,
cents ~ n Tn cents ~ less cent for
This for immediate reply. Terms cash; draft
with bill of lading.
win you accept thisF' the factor was
asked.
II guess we will have tor was the reply.
1--WE cannot help ourselves. We have no
stock on hand We could ship 500 bali
rolls, IL we had them, in orders already in
hand. Planters are needing the bagging
now. Here are two gentlemen from South
western Georgia that have come here to see
why the bagging is not available" The
gentlemen nodded affirmatively, and said
that Southwest Georgia has a good crop,
aud all they are waiting for is the
bagging. The factor whom were visiting
said that other factors were resorting to
ludicrous plans to meet small orders, and
some of them were trying to borrow from
others whose stock is even lower than that
of the wouid-be borrower.
THE SUPPLY RUNNING SHORT.
Another leading firm of factors had about
$500 rolls of bagging month ago which
has been reduced TO about fifty half rolls.
This firm has been standing out, and buy
ing from hand to mouth, hoping for de-
cline, but they. were notified yesterday by
telegram from Boston Of another advance,
on lots of 900 half-rolls as follows, free on
board at Boston:
One and three-quarter pound bagging
from 81 cents to ga cents per yard two
pound bagging from 1917 cents to 10%
cents per yard; two and one-quarter pound
bagging from IL cents to IL cents per yard
1t was also apparent that as the demand
increased prices would be advanced. 1t is
too late, the factors say, to get bagging
from abroad to compete with the pool in
time to handle the crop now being harvested,
and to be harvested this month and next.
I'VE are all at sea, said the representa-
tive of another firm. 1--WE can't get the
bagging without paying the price demanded,
and just at the time when the stock has
been exhausted, and the factors find them
selves besiegediwlth orders from the interior,
we are notified to-day by the manufacturers
of another advance of one-fourth cent"
At another house the reporter was told
steadiness in the market, prices advancing
EFFECT OF THE ADVANCE.
Opinions differed as to the effect the ad-
vance will havo on the cotton market In
one place it was thought that the planters
will not stand it, and that the cotton will
stay in the Clubhouse. Bagging must go
down or cotton will go up. After q few
first shipments the cotton merchants must
help the planters to lpld the crop until the
demand commands higher price for cot
ton. This view was not shared by other
factors.
An advance In so small an item as six
yards of bagging, they say, will not affect
the price of a bale of cotton. The mer-
chants cannot afford to carry the planters
for the price of a few yards of bagging, and
with the Likelihood that the same condition
Of affairs will exist when the demand for
bagging will be renewed.
A 200 ROLL SHIPMENT.
1t was learned yesterday that there are
200 rolls of bagging on the Ocean steam
ship wharves consigned to an Atlanta
broker, who. when he learned the stock was
short here. concluded not to reship,
and it will change hands here to-day
no doubt, as there are plenty
buyers The advance thus far has been
between cents and 5 cents per yard, and
| as there are about 55 ,000, 900 yards man
| ufactured annually, it means that the pool
will pocket about s., 50O, 900 on the basis of
an advance of Az cents per yard. The price
of sea island bagging has been only slightly
| affected by the rise, say about one-half
| cent per yard, but the price of ties has
risen. Last year factors furnished planters
at the rate Of 81 to 81 05 per bundle, and
this year the prices range from 81 Is to 81 20
| per bundle.