New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-22
COTTON'S LOFTY TUMBLE.
IT DROPS OYER HALF Il CENT.
MARKETS HERE AND ABROAD DE-
MORALIZED.
TREMENDOUS SALES on THE NEw-yoRK COTTON
ExCTIANGE-rAILuREs AND COLLAPSE IN
NEw-oRLEANs-BlG BROKERS EXPECT

4 REACTTON-ELIJSON'S DENIAL
The terrific slump in cotton which began last
Wednesday continued yesterday and the decline
eliminated in a veritabe bull panic on the floor
Of the New-York Cotton Exchange. The Gotten
markets Of the entire world demoralized.
The trading on the New-YorlS Cotton Exchange
reached the enormous total of $1,000 bales and
at night. so heavy the pressure to sell, that
prices closed almost at the lowest Of the day. and
IL was doubtful II the tremendous liquidation
which had been going for four days had yet
reached It's limit. Opening with sheer fall OF
20 to 80 points under Saturdays final figures. the
close last night showed net decline FOR the day
Of Sc points. Since Wednesday. when the bul!
boom reached its climax and January sold Tor
944. there has been drop OF III points. or Ia
cents pound. equivalent to nearly Sc bale.
January cotton closed last night at $50. This
seems like very heavy decline but II must be
remembered that prices had advanced over 4oo
points or cents pound. from the lowest level
WILD SCENES ON THE COTTON EXCHANGE.
The scenes on the New-York Cotton Exchange
yesterday from the opening to the close were
those of Bedlam duplicated and magnified
hundredfold. Brokers could scarcely execute the
orders intrusted 70 them SO overwhelming was
the pressure to sell cotton and terrific the eX-
citement. The telegraph wires to ali parts of this
country and the cables to Europe We're swamped
with messages. The ring was the centre OF a
wild and frenzied mob Of men who roared and
shrieked as the inverted pyramids of the bulls
fell and toppled all around them.
There several efforts made to stop the
downward rush Of quotations. and momentary
rallies occurred during the session. but they
we're only momentary the figures melting away
like snow in the thaw under the pressure OF sell
ing orders. Just before o'clock the market went
all TO pieces and pandemonium regned With
rapdty that appalled, the stouest bulls Decent
ber and January options went down the slide so
points below Saturdays closing prices. Novem-
Der dropped 3S points. and February. March and
May the inactive months. fell off 10 to 10 points.
In the great excitement on the floor it was hard
10 get an idea Of the real prices that were pre-
vailing. Brokers sold the same option at figures
varying from to points 1t vas said that nine
ont Of ten operators who went on the floor had
little else than orders TO sell
CALLING FOR MARGINS.
All day Sunday and all Of Friday and Saturday
the downtown commission houses have been call
ing for margins. and stop-loss orders from weak
holders. as a result. accelerated the decline In
New-Orleans the chief cornerstone OF the fair
tressingy IT. the last few days, the decentralization
was as great and the selling as heavy as here. and
at times greater. Two failures were reported
from that city as result of the slump.
Early IN the day messages came from New
Orleans that Peter Labouiese. the bull leader
there, had Joined forces with Lehman. Stern &
Co. big New-Orleans bears. with Andrew Hero.
another bear. and that the object Of the COM
binatlon TO hold UP prices. This caused a
brief rally there and here but a denial Of the re-
port let the market down again.
VIOLENT FLUCTUATIONS.
The January future opened on the New-fork
Cotton Exchange at S54. against s.s6. the official
close on Saturday. There rally to $50. an
other weakening TO $50. with quick rallies and
reactions for awhile. Then the price broke to S.4s.
rallying to 500 and again falling to the lowest of
the day, 8.27 From this point X rose to S.44. but
in the final ten minutes Of the session melted
away to $50 A single sale Of 10000 bales Of Janu-
AIRY was made at S55. Up to yesterday the largest
full days business Of the New York Cotton FIX
change was done last Wednesday, the day the
bull boom eliminated when the record-breaklng
total of $50 100 bales sold. Yesterdays sale.
as noted above swelled to the great sum of Sl0 700
bales.
MR.. INMAN'S GREAT PROFITS.
When prices reached what appeared to be the
bottom. report was sent out over the ticker that
John H. Inman believed tie drop had gone iar
enough and reaction was in order. Mr lnman
himself was on the floor Of The Exchange a great
deal yesterday, and he was credited with buying
back at a cent a pound cheaper than he sold IT.
the % 600 bales he let an ursuspecting world have
on Wednesday 937. Mr. Inman it Is said. has
cleared over $500 900 by the drop in cotton. and s
now I'm a frame Of mind to be bull. Mr. Inman
il a versatile man.
The immediate cause OF the opening break yes
terday was a perpendicular drop in Liverpool
Of lO-6id to 1l-6id. equal to 2S American points
Final Liverpool quotations were down an addi-
tiona 2-6id. The spot sales to Manchester spin
ners were only 5000 bales. The spot markets
Of the South were all from 4 to 2. cent lower,
and business badly deInoralized by the pane IN
futures New-Orcans sold 1900 bales. ana
Memphis 1850 bales. Port receipts yester-
day were $1,000 bales against $4,000 bales
last wear But statistics cut no figure IN the
prevailing decentralization. The underlying cause
0f the fall. the collapse OF the New-Orieahs
bull movement. overshadowed all else. YET @ ti.e
conditions on which the great bull rise was
built still exist.
THE RISE TOO RAPID.
The tremendous break is attributed by many to
the fact that the advance had been too rapid.
one broker described the situation as follows:
THE break had to come. and was looked for,
but IL was not expected all at once The truth
Is that the reaction in cotton is taking place In
DAYS instead Of months. This trenendous dTop
should have extended over two months. We are
doing the business IF liquidatlng In three uays'
The market. In consequence. Is in condition
little short " panic and real values are Ao'
considered.
The action Of Liverpool tomorrow Is anxiousy
awaited in view OF the unprecedentedly rapid fail
In values on this side.
Ellison cabled denial from Liverpool that he
had ever issued estimate Of 1.50O'O0O-bale
crop; so this must have been n pure missionary
effort on the par; Of the bears 10 get some cheap
cotton.
NELL, TO LOWER HIS ESTIMATE.
rnnnrt frnnn Now ORLEANS said that SO firm