The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-01-27
COTTONS BIG ADVANCE.
A JUMP OF ONE CENT A POUND
SINCE JAN. /.


Causes For the Advance-The Situa-
ton in the English Markets One of
Them - The Speculative Causes.
Futures Booming for the Summer
Months What Cotton Men Say.
Cotton aud its price are the all-absorbing
topic Just at present in commercial circles.
The spot" market has steadily advanced
since the firstof the month, when middlings
were quoted at GIG cents, and Saturdays
sales were at 101< cents, a clear advance Of
1916 cents on that particular grade, while
in other grades the advance was even
greater.
The tone Of the leading markets is strong.
New York went up Il points Saturday, aud
Liverpool Sod. OF course the price has
been higher this season, notably when the
Liverpool corner was broken in Ssptemb er.
It is believed that prices will go much
higher by the middle of February.
CAUSES OF THE ADVANCE.
There are several things which have acted
/ as a stimulus TO the present elasticity of val
ues, said a well-known factor 10 a MORNING
| News reporter Saturday, but the principal
one is the situation in the English markets.
where there are unusually free movements
to spinnerS The position is just as favor
able In this country, and considerable
| strength and activity comes from the falling
of Of port receipts as well as the receipts at
the interior towns, and further from the
fact that little cotton rests on the New York
| markets to satisfy contracts, while the
wants Of New England spiuners have be-
come full and the demand is 50 general. As
an illustration, the New York Journal of
| Commerce says that 4. 800 bales received at
| New York last Thursday went direct to
the mills or exporters. There is apparently
a shortage interest on this side Of the water
and not little Of it in the south.
WHAT THE FACTORS SAY.
Another leading Savannah factor said.
a few days ago, that few persons have
given theprOper thought to the produc-
| ton and consumption of cotton, and 10 the
lesson which the last two seasons has
taught, that the actual consumption Of
| cotton has overtaken or passed the produc-
ton, 50 thai higher range of values will
| have to be accepted as normal, at least until
the production has again been largely ex-
panded. The tendency has been that way
for the last few years; if it not in the num-
Der Of bales, 1t has been in pounds. Why.
said the factor, a production short of
100000 bales on this side would actually
produce cotton famine, at the
rate of consumption in the two
| previous seasons, and an g 900, 900 bale crop
Is none too large for the demands of trade
as the world is increasing in population.
THE RESULT OF SPECULATION.
But it makes no difference whether
| 100000 bales are produced or 1000, 900
bales when the market gets into the hands
of the spectators and is subject to their
manipulations. 1t is then that the price is
almost invariably fixed, and. as another
well known exporter remarked, man is
fool to buy cotton on figures.
| Probably the strongest fact in behalf of the
bulls is the heavy falling off in the receipts
since Jan. l. The winter throughout the south
has been an open one, and with the magni-
| hcent harvesting weather last fall it is not
to be wondered at that the farmers have
taken advantage of it and gathered their
cotton into the gins and rushed it to mar
ket. The movement for the first four
months of this season was without prece-
| dent. This very fact and the precipitous
and sudden fall in receipts this month is
enough to shake the faith of the widest
bear rampant.
ALWAYS A DEMAND.
The two seasons of 1SS7-'SS and of
1SSS-'S9 show that the world is ready
to take another big crop, as there was no
| surplus carried over from either season.
The amount Of stock at present in
| America is over a quarter of a million
| bales short of last years stock. notwith-
standing the receipts are near 100000
bales greater thus far.
There are other reasons, said the ex-
| porter, for the activity on the other side
among spinners. Exporters on this side
are receiving circulars stating that the
| Egyptian crop is falling and while a full
| Bombay crop was made, there is sudden
and unexpected demand from another
quarter.
CHINA'S SHORT CROP.
Reports say that numbers of Chinese
merchants have appeared in Bombay to
purchase cotton, on account of the failure
of the Chinese crop. As China raises
annually 100000 bales, which is all con-
sumed in China, not bale being expo rted.
1t will be seen that the big Indian crop will
cause no surplus in the visible supply.
The spot market has been rather quiet
| and operators here have not been satisfied
that the advance and strength of the mar
kets would hold out. AS a matter of fact.
they have not supported the steady advance
in spots, and their takings have been on the
hand TO mouth order until day or two
ago, when the sales reached over 9. 900 bales.
A good many buyers are yet of the opin-
ion that the rise is the result of speculation
and Is not legitimate, aud that when the
reduction takes place the break will be a
bad one. Many factors, however, express
great confidence i'll the situation, and are
setting aside samples waiting for the price
of midlands to touch IL cents before thew
let go. The rise in future months has been
heaviest for the summer and the weather.
The planting season will regulate the prices
later on.