The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-05

to be developed viii be confirmed. great
deal OF the bear feeling Is due TO their reli-
ance upon the theory which has been con-
ftrmed bY a number OF years experience that
during October, November and December
with rush, and desire to sell on the part
OF the owner that would bring about the de-
preston that usually followed. The south to-
day Is very different south than that OF a few
years ago and because, as we said shortly
since, American cotton has to provide for ali
the banking and speculative short interests
in four future markets, besides practically
clothing the world with cotton goods IL does
look as though the time had been realized
Tor the southern people to obtain better
price than the price at which these people
VINO have been selling II for the last six
months we're willing to allow. We
sailed eido attention few =, days ago
twice since 1919 had middlng cotton in this
market sold below cents. 1t makes no diff
ference, however. whether the movement is
large or small, or whether the idea OF the
crop should be S010OOO or 1000 900 provided
the spinner in this country and Europe does
not consume cotton itself and Europe. es-
pecially, ignores S,OO0.0O0 estimates and tele-
graphic crop bets OF large estimates. which
is the latest development to bear cotton, and
which no one here pays the slightest atten-
ton, although the market is Hooded with
them. There certainly seems good reason
!es surprising that there should be a spot de-
mand that would carry prices higher and
perhaps much higher The position here is
about as follows: The cotton that comes
here is, except a very small proper
tion of it. cotton that belongs TO the
people who bring il here. contracts against
which have been sold at the time OF its pur-
chase, and therefore, while brought here for
banking and for the protection OF the partiCu-
lar contracts referred to, affords protection
for the very large and short interest that al
ways exists here more or less for local New
Orleans and European account We suppose
there are some p firms here who own practi-
Cally tho New York stock always, and the
selling during the spring and summer that
takes place speculatively, is based upon the
IDEA that the usual amount OF cotton would
be brought TO New York by the same people
during the fall and winter, and
that the owners OF the spot cotton
would tender as usual as each month
became current, and by enabling them TO
cover their own sales and transferring to
other months, thus enable the speculative
shorts TO do the same thing, We see now as
a short interest here perhaps very near. II not
large as one year ago and the stock OF actual
cotton III 900 bales less than this day last sea
son and with southern sp)t markets above a
parity with this market. owing to the greater
financial independence OF the southern people,
II becomes n serious question as to the Condi-
ton of things that might arise II the short
cotton contracts cannot be protected by
larger stock here, which 1t will be impossible
TO accumulate unless the premiums on each
month becomes greater, and the PARTIES,
above mentioned change in favor OF the
New York market. In addition to this
tho long interest seems TO DC IN pretty
safe hands, and this feeling of confidence is
largely added to by the very strength of the
spot situation, so far as the price Is con
celned, and statistically as well, aud unless
the houses here that bank on cotton can come
to the rescue of the short interest during the
next three or four months by creating larger
res erVes of stock it looks as though thele
might be natural squeeze on each mo nth as
it became current. Should the owners of the
stock here find it better to cover their con
tracts on the market rather than take the
taken away from them IL would leave the
speculative short interest in a predicament
which might have occurred many times In
tho last twenty years and which, now that
there is a possibility Of its being realized.
presents, perhaps, a serious situation for
those who have not the cotton to liquidate
their short cnnirncfa