The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-12-22

COTTON DECLINED A QUARTER

1.-THE Stock Market Feverish and
Fluctuating-.Grain and Provisions
Closed Unexpectedly Steafv--a
Week of Intense Excitement.
NEW YORK COTTON EXCHANGE,
Dec. 21.-(Special) I'm our weekly cot
ton market review of two weeks ago.
we referred to the nice adjustment of
the balance between supply and de-
mand that we seemed to be reaching
in the cotton trade. \ recognition of
this fact induced an advance of nearly
half a cent pound in the price of cot
ton in Liverpool, where spinners rec
ognziney exosting conditions seem to
be disposed to increase their supplies.
The American market did not advance
so much. and the result was slight
increase in the movement for export.
Within the past few days, however,
the nicely adjusted balance above re-
ferred to seems to have swung III the
other direction, the causes working to
bring about this effect being in the
first place some sslackening i'll demand
from England, and in the second place
to the feeling of distrust and uncer-
tainty engendered by the message OF
President Cleveland and the vigorous
action of Congress i'll regard to the
Venezuelan controversy. This feeling
has to-day spread to the Cotton Tx
change, effecting quite sharp decline
in prices there, and until the Issue of
the international complications now
existing shall be determined it seems
altogether unlikely that it will be pos
sible to revivify speculation i'll cotron,
or to induce consumers to anticipate
their engagements by any further in
crease in the stocks of cotton. \ war
between Great Britain and the United
States seems unlikely; if not economi-
cally impossible, but many conceive
that the situation is a grave one and
the next few months likely TO be
fraught with influences that will be
very disturbing in their effect. What
the effect of war, should such Il de-
plorable eventuality arise, would be
upon the cotton market, it is hard to
say. Unquestonablv its first effect
would be to greatly depreciate the val
he of all American products, cotton
included; and though, later on, it
might result in restriction of the pro-
duction that would give us higher
prices.
Apart from political influences the
situation does not show much change.
The most important feature, statistic
ally, in connection with it is the con-
tinued volume of the Bombay move
ment. Receipts of East India cotton
at the port of Bombay for the week
ending to-day are $4,000 bales against
$4,000 last year. This is an increase
of nearly 100 per cent. The total re-
- To, laot
show an increase as compared with last
year of III, 900, which is an increase
of nearly 10 per cent. This increase
has nearly all come into sight within
the past few weeks. India is an anti
podean country; their summer is our
winter. and the cotton crop there does
not commence to be actively marketed
until after the first of January IL
this ratio of increase is continued, it
will doubtless have it's effect upon the
worlds supply and materially decrease
the shortage resulting from the reduc-
ton in the American crop upon which
the bulls have SO confidently counted.
Looking at the. situation broadly. we
can see nothing to encourage pur-
chases of cotton for an advance at the
moment. Rallies of course, are to be
expected, but with the United States
Treasury gold reserve down to a point
that makes a bond issue only a matter
of few weeks, and foreign capital
lists indisposed, by the Presidents bell
loose message toward further invest
ments in American securities, govern
mental or otherwise. the commercial
situation does not look promising.
While in addition to this we are rapid
" approaching the season for plant
ing the next crop, with every apparent
influence fayoring the expectation Of
a large increase in acreage.
NEW YORK, De1. 2l.,-Great excite
ment prevailed on TIE cotton exchange
to-day as the result of weakness de-
vesoped by the English cotton market
instead of the hoped for. if not gener-
ally expected, Liverpool response to
the rally of our own market made yes
terday after the dead break of the at
teraoon. To the contrary, Liverpool
broke five points and showed dinin-
ishing spot sales. Private cables were
very weak. At the same time it was
thought by many that the war scare
would start flood Of receipts next
week. The market opened weak at
decline of isaac points and ruled very
excited and irregular. At the weakest
interval a decline of 20M22 points was
apparent. Exaggerated reports of
trouble in Wall street increased the
decentralization and for time the mar
ket bordered ON a panic. Good buying
started in. however, one large concern
in particular calling it 'bargain-coun-
ter day" and buying right and left.
This caused a rally, and the market
closed with the decline reduced to 40d
il points Although there were but
two hours in to-day's session, sales
reached the unusual Saturday total of
265. 500 bales.
Na~ Y0IE
YORK neember 81 --s)"'r ''I--.tia;
closed qui@t: middiine upland ~ 40
ding cuff So, sales l21 bales
Edbnras opened .eady at the C.
sales 81, TO- tales.
Futures closed tespy sales 26 Is @ Ia Is.
oPRE'G. Close
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