The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-10-24
WEEKLY COTTON LETTER.
New York, Oct. II, 1S9.

The speculation in cotton continues
to surge along with unexampled force.
Trading on the New York cotton ex-
change on Wednesday last aggregated
over $50, 900 bales, the largest days bus
mess done in this decade. Coincident
with this enormous trading the highest
prices thus far reached were established,
namely: 9.44 for January contracts and
9.54 for March contracts. The activity
in the market has been greatly stimu-
lated during the past week by various
rumors with regard to the PRONUNCIATION
of a fresh crop estimate by Messrs.
Neill Bros. These rumors finally were
confirmed today by the issuance in Liv-
erpool. as we understand it, of a circular
by Messrs. Neill Bros, estimating the
crop at 6,S00,000 bales maximum, and
indicating the possibility of yield much
less than this figure Coincidently with
the publication of the circular the mar
ket dropped sharply in Liverpool and at
the close Thursday evening was about
6-64d per pound under the highest prices
reached. In New York at the close of
business on Thursday prices are about
20 points below the highest figures reach
ed Thus far the decline can hardly be
called anything more than q natural re-
action, but it is the first substantial re-
ly four weeks, and has given pause to
the enthusiasm of many hitherto bullish
SPECTATORS. Mr.. John lnman, the lead
| ing New York cotton merchant, when
| the market was at its very highest OIL
! Wednesday, appeared upon the floor OF
| the New York cotton exchange, and al
| though he remained but minute and
said hardly word to any one, his APP
pearance seemed to have magical effect
upon the ma iority of traders, who some
how inferred that he was opposed to
continuation of the advance and decline
of 10 points resulted in less time thar
! it takes to tell it. On Thursday some
recovery was established at the opening
but prices declined Sharply during the
day, and were only rallied by vigorous
buying on the part of the New Orleans
bull contingent, whose expressed con
yictions seem to be undisturbed, ant
whose faith in higher prices has beer
evidenced by their absorption of large
amounts of cotton thrown over by 0thel
less confident holders. In New Orleans
the position is remarkable. The holdings
of contracts for the delivery of cOttol
during October, November, DeccmDe
and January seem to be nearly all con
centrated in the hands of one prom
nent operator there. whose declared Ill
|
ton that he has contracted for, and tn
result is that the New Orleans market !
| in the anomalous position of being high
or than New York for nearly all tn
months this side of March, 1896. The re
sult is. of course, that there is an actly
demand for cotton throughout the South
ern States as far north as Georgia TO
sbinment to New Orleans. The move
ment for cotton for export has, eXcep
in special case, been almost entlrel
stoned. and those exporters VINO nav
made contracts for October shlpmen
find themselves forced to complete thei
engagements at an exceedingly heaN
loss. The anomaly of position is havin
it's logical effect upon the STOCK OIL cH,
ton in this country and the accummula
tion at nearly all the primary marker
is rand and large. Although the amour
of cotton that will have come into slgn
nv the end of this week will probably D
of least 250000 bales less than up l
the same date last year, the stocks G
cotton Mt the ports and the known interlo
towns will be at least 15O,OO
bales heavier than they wer
for the same time last yea
Thus showing Il net dlmlnutlon
the movement to consumers OF practlcail
400 600 bales. The theory of those VIII
! so tenaclOuSlV nOlu lut maj hNt III 10 p
emf abnormal position is that the Amer
can crop is so short that sooner or late
consumers must pay the prices now d'
manded in order to get the cotton the
require. and that the result of this az
emulation will be to ultimately fore
the foreign markets to the parity of pre-
ent American prices. Such calculation
are based upon the theory of n col
sumption undiminished by the. advanc
in price. How far this theory is corret
remains to be seen. The experience. {
the past is not encouraging to those VIII
thus early in the season were attempte
TO coerce or force the operation of tn
law of supply and demand. Meantin
it is to be admitted that the receipts {
cotton, especially from Texas, are small
or than has been anticipated the mOv'
ment at many centers of that State show
ing a falling off of at least 30 per cent Q
compared with that of last year, and tn
total crop movement showing a substal
tial deficiency, though when compariso
becomes made with the year of 1893.
which year the production was in roun
numbers 100000 bales, the compariso
is not so striking. The spirits Of til
speculation in cotton, has, however, a
tanned an inactivity of expression thi
rendered it almost impossible to max
any intelligent forecast of the situation
and to put the salient facts of the sitl
alton before our clients in right name
is to perform the full function Of a col
scientious broker at the present time.