The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-10-22
COTTONS BOOM coLLAPSES
THE BULLS IN A WILD STAMPEDE
BEFORE THE BEARS.

January Opens Thirty-Two Points
BeIow saturdays Closing at New
YorI-Lnter I'm the Day Ii Drop.
Tventy-seven Points MOre-Fears
of Widespread Disaster 1.mong
the Cotton Houses Induce Some of
The Heavy Traders TO step in and
Prevent a Further Decline.
New York, Oct. 29.-Cotton prices on
The New York Cotton Exchange this
morning opened over 80 points below Satur-
DAYS official closing figures. The decline
was attended by great excitement. jan
nary futures opened at s54c, against S.S6c
a. saturdays close. On Wednesday last
the same future sold at 9.44c, or 80 points
above to-day's opening. This is equiva-
lent to $3.50 a bale. The immediate cause
of the smash this morning was the op-
ening decline in the Liverpool market of
lO-6fa11-6id.
The decline as a whole, however. has
been occasioned by the reported collapse
of the bull campaign which has been en-
gineered from New Orleans for several
months past The New Orleans bull
clique was last week reported to be liqui-
dating its holdings of cotton, and this
Business was very heavy this morning
and the fluctuations very violent. Within
thirty seconds the market moved
points. January, which had opened at
S54c rallied to S.65c. 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 touched
s27. This was a decline of III points from
Wednesday, or equivalent to $5.S5 a bale.
In the early afternoon, however, con-
servative traders were counseling that
there should be a reaction, or seriou. re-
suits might follow. Some prominent op-
orators are said TO have come in as buy
ers.
A New Orleans dispatch reported the
failure of the Emmett & Buch cotton
on the New York Cotton Exchange ag-
gregated for the day co., 900 bales-the
largest on record. At LAS o'clock the
January price was $40.
The tremendous break in cotton and the
wild, unprecedented scehes on the floor
Of the cotton exchange were the talk Of
the street. Stock operators left their IA
Vorite speculative commodities to discuss
cotton and its downward career.
one or the best known cotton brokers
IN the city, when asked to give an opin-
ion on the market, said hurriedly: "The
Dreak mad TO come and was looked for
but 1t 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 ought to have ex-
tended over two months. We are doing
the business of Hquidating in three days
Ihe market, in consequence, is in a con-
values are not considered"
When prices reached what appeared to
be the bottom, John II. Inman, who sold
25.000 bales OF January at 9S last week
became a bull and bought back what he
had sold at 1c less. His profits are re-
ported to be enormous on the transac-
ATr Inn 10 cot - IL
over 100000 on the drop in cotton in the
past four days.
There was report late to-day that the
governors of the cotton exchange were
investigating reports that several cotton
brokers made sales on the curb after the
closing of the exchange on Saturday and
that they would be called to the atten-
tiOn of the rules.
At O'Clock the sales Of cotton amount
ed to over 10000 bales and speculation
was still very heavy.
New Orleans, oct. H.-When the cotton
business closed here Saturday, the dis
organized and ldemoraliAed bulls who
that with the intervening Sunday some
thing would turn up to save them from
absolute ruin, and many really believed
the bottom had been touched
This morning the market opened almost
destitute from exciting features from the
body was infected with a few degrees Df
fever, however, and it required but little
more to turn bedlam loose. The market
optutu dl dDOul z 10 points DelOW sat
urday's closing prices. From this on there
was continued decline Between 1870
and u o'clock the wild excitement of
Saturday was perhaps surpassed. The
announcement of the failure of Emmett
d Buch and |. G. Gilbert q Co. was posted
and added somewhat to the frenzy of the
brokers. January futures went down TO
S;07, but there as a rally, and the market
closed steady at S19c to S20c. The heavy
selling was almost entirely for liquida-
A reporter of the Southern Associated
Press interviewed several prominent firms
and brokers and was assured that the
FAILURES of Emmett & Buch, and Gilbert
q GO. had no effect whatever on the mar
Set as they were looked for. 1t is we'll
known that both firms were loaded down
WIN obligations, on account of country
customers, whose remittances could not
possibly reach here in time on account
OF the continued and rapid decline. Both
Ilrms have large amounts of money locked
up, on which they could not realize Their
5uSpension was, therefore, inevitable.
Ihey viii pay not less than IS cents on
every dollar of their obligations probably
Uoudr Tor dollar, and both firms will re-
sumo business in few days. The firms
iillerVleWed believe that the market has
Is over.
me brokers will have a meeting to-
Llsut at u o'clock for their mutual inter-
~ ana viii eliminate all contracts which
Snould not exist. This win clear up the
laljer. This meeting will be private and
will not ta, erix