The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-10-22
THE COTTON SITUATION.

| UoIOES Oh Il olISl0 OSJ ~ 40
that the South has lost twenty million
dollars by the slump"
The opinion, advanced some days age
by a veteran dealer in cotton, published
in this paper, that he had no confidence IN
the ability of any man to make even an
approximately correct prediction about
cotton, is given additional emphasis by
reason Of the state of the market during
the past few days.
Sundays New Orleans Picayune, when
is published at the leading cotton port OF
the South, and one of the best author
ties on all questions relating to cotton,
contained the following editorial:
yesterday witnessed considerable ex
element in local cotton circles, ana the
furry which occurred in all probability
marked the elimination OF the great
speculative movement which has been IN
progress for some time. The decline
which occurred was in no sense justiti d
by the statistical position of cotton, and
can be explained only in the blind eager
ness to realize earned profits and to
liquidate in expectation of a decline
which everybody seemed to anticipate at
the same time.
The leading cause of the excitement
and rapid decline developed yesterday
was the plot c0ncocted by the bear op
orators 10 New York to stampede the
Southern holders of cotton. They real
lied that unless they succeeded in ere
ating diversion they would have to pay
large profits to Southern holders of cot
ton, and their friends, the New England
and Manchester spinners, would be
forced to purchase the raw material for
their mills at materially higher figure
than they have paid for several years
past They accordingly spread broad
cast rumors and reports to tse effect
that the leading bull operators in New
Orleans were liquidating, the purpose
being to create the imp ession in the
minds of Southern holders of cotton that
the advance had eliminated, and that,
consequently, the time had arrived to
unload their holdings. The plot sue
ceeded, and the wild scramble to sell
which was witnessed yesterday fol-
lowed.
The cotton trade throughout the South
will now have days respite, during
which the statistical position of cotton
and the true inwardness Of the recent
furry can be carefully considered. The
Picayune believes that calm survey Of
the situation will show that the decline
which has already AIKEN place has more
than discounted any top heayines5 Which
may have existed in TIE market Every
body now realizes that the crop will be a
short one, so eminent an authority as
Mr.. Neil, who has been more uniformly
successful as crop estimator than any
other man, holding that it will not pos
sibly exceed $500 900 bales, and may be
much less. No facts have developed
which can be considered as having dis
credited Mr. Neill's estimate; hence,
with prices nearly a cent lower than the
highest point reached, it would seem
that the time had arrived for merchants
and planters to hold On to their cotton
and wait for reaction.
At any rate, attempts to force cotton
on the market during the prevailing ner-
vousuess would only precipitate further
weakness; whereas prompt stoppage Of
offerings would permit the market to re
cover itself and in all probability bring
atout favorable reaction. The South
ern producers are more independent this
year than usual. and are able to market
their crops to suit their own convenience,
as well as their own ideas as to value.
Such being the case, it would be wise
policy for all concerned in handling
actual cotton TO withhold offerings fer
the present. A falling Off in the pres
sure to sell would promptly bring about
a reaction in prices What is now OF the
most urgent Importance is TO check the
nervous excitement and weakness exist
ing in The market. and the surest way of
accomplishing this is by withhold ng
offerings of actual cotton until satisfac
tory prices are paid. In short crop
year like the present the producers must
dictate the price, and not the buyers,
who will have to have the cotton in any
event, and, consequently, should be
made to pay full value for it.
The New York Herald, published at
the seat of speculation in cotton, and a
leading representative Of the New York
idea, on Sunday published The folloG
ing editorial;
the collapse of the speculation in cot
ton is in lire with the statement made
in our financial columns that "the boom
eliminated with yesterdays last We'd
nesday'~l record breaking score OF trans
act ons in $50, 700 bales"
On that day the prize of middling uD-
land cotton was nearly ten cents pound
Tor 9 5 8, to be exaot), as compared with
six cents one yea" ego speculation
centres, however. in coCton for delivery
in the month OF January, and this option
on Wednesday sold at Al
Yesterday it closed in the New York Got
ton Exchange at 8 SO, and subsequently
it sold On the curb at 8 so, the latter
figure marking the phenomenal fall oil
half cent poand il a few hours. This
uausual trading after Board hours was
- a. L.,