Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-10-22
BREAK IN COTTON.
Something Very Like a Panic on
Change in New York.
COLLAPSE OF BULL CAMPAIGN.


NEW YORK, October 2l.-Cotton prices
on the New York Cotton Exchange this
morning opened over 80 points below
Saturdays official closing figures. The
decline was accompanied by great ex-
element. January future opened at
S.55. against $50 at Saturdays close.
Wednesday last The same future sold
at 9.4i, or 90 points above to-day's OPEN
ing. This is equivalent to $3.50 per bale.
The immediate cause OF the smash this
morning was an opening decline In the
Liverpool market of 10n1l-6i. The de-
cline, as Il whole, however, was oc-
casioned by the reported collapse of The
bull campaign. which has been engineered
from New orleans for several months
past. The New Orleans bull clique was
last week reported TO be liquidating its
holdings of cotton. and this quickened
the decline in this market.
Business was very heavy this morning.
and the fluctuations were violent With
in thirty seconds the market moved .
points. January. which had opened at
S.5i, rallied to S.Gj. and then weakened
again, with quick rallies. and recovered
during the first hour. The sales on the
opening call were on an enormous scale.
In the early afternoon January cotton
tonuched 81. This was decline of III
points from Wednesday. or equivalent to
$3.50 bale. In the early afternoon
however, conservative traders were coun-
selling that there should be a reaction. or
serious results might follow. Some proinl-
nent operators are said TO have come In
as buyers. y New Orleans dispatch re-
ported the failure of Emmett * Buesch,
a cotton house there.
Up TO ! o'clock the sales on the New
York Exchange aggregated $4,000 bales
the largest on record.
At l:i5 January's price was $40.
THE ONE TOPIC.
The tremendous break in cotton and
the wild. unprecedented scenes on the
floor of the Cotton Exchange were the
talk of the street. Stock operators LETT
their favorite speculative commodities to
discuss cotton and its downward career.
one of the best-knbwn cotton brokers
in the city, when asked to give an opin-
ion on the market said hurriedly: THE
break had TO come and was looked for,
but it was not expected all at once. The
truth is that the reaction in cotton is
taking place in days instead of months.
This tremendous drop should have e&-
tended over two months. We are doing
the business OF liquidating in three days.
The market, in consequence. Is in con-
dition little short of "A panic and real
values are not considered"
When prices reached what appeared to
be tha bottom John II. Inman. who sold
Q 200 bales Of January at 9.37 last week,
became a bull and bought back what he
had sold at / cent less. His profits are
reported enormous on the transaction. lie
is said to have cleared over 10000 on
the drop in cotton in the past four days.
There was a report late to-day that the
Governors Of the Cotton Exchange were
investigating reports that several brokers'
made sales on the curb after the close
Saturday. and that they would be called
to account for it,
At . o. clock the sales Of cotton amount
ed to over 10000 bales, and speculation
was still very heavy.
IN NEW ORLEANS.
NEW ORLEANS. LA. October d.
When the cotton business closed here
Saturday the discouraged and demOraliZed
bulls who rad been routed at every point
hoped that with the intervening Sunday
something would turn up TO save them
from absolute ruin. Many really believed
the bottom had been touched. This morn
ing the market opened almost destitute
%
furry of Saturday. Everybody was in
fected with few degrees of fever. how
ever. and il required but little TO turn
bedlam loose.
The market opened at about 2 to 4
points below Saturdays closing prices.
From this on there was a continued de-
cline. Between l:30 and i o'clock the
wild excitement Of Saturday was perhaps
surpassed. The announcement of the
failure of Emmett d Buoch and l.. q.
Gilbert q Co.. was posted, and added
somewhat to the frenzy Of the brokers.
January feature went down TO SO7. but
there was a rally. and the market closed
steady at S.l9 to $50. The heavy selling
was almost entirely for liquidations.
\ reporter of the Southern Associated
Press interviewed several prominent
firms and brokers tonight. and was
assured that the failures of Emmett ~
Buech ard Gilbert * co. had no effect
whatever upon the market as was looked
for II was known that both firms were
loaded down with obligations on account
of country customers whose remitiances
could not possibly reach here in time.
on account Of the continued and rapid
decline. Both firms have large amounts
OF money locked up on which they could
not realize. Their suspension was, there
fore. inevitable. They will pay not less
than 70 cents on every dollar OF their
obligations. probably dollar for dollar.
and both firms Will resume business in
few days. The firms interviewed believe
that the market has been pretty vel sold
out and that the worst Is over
The brokers held meeting tonight al
u O'Clock for their mutual interest, and
will eliminate all contracts which should
not exist This viii clear up the situa-
ton materially. This meeting was pri-
vate, and what it did Will not be given