The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-01-26
Material improvement on all the
Markets.
A RETURN OF CONFIDENCE
Prices Higher and the Volume
of Business Enormous.
A HEAVY ADVANCE IN WHEAT
Though Cotton Opened Higher Sell
ing Pressure Became so Heavy
that it Closed at Decline
of Points,


New York, Jan. 25.-( Spceian - The
duilnees which has prevailed in the
cotton market for some time past was,
during the past week, treated to a
short period of renewed activity and
comparatively sharp advance in prices.
On Friday Of last week, March con-
tracts sold as low as 7.S9, but on
Thursday of this week, the prices
point reached during the week. The
slight renewal in activity, however,
was not due to any revival in the out
side speculative demand, but was sim
ply the result Of an active demand
from the large short interest stilnulat-
ed by the buIlish circular issued by Mr..
Ellison on Tuesday last In has circu-
lar Mr. Ellison estimates the present
weekly consumption of Great Britain
at 10000 bales and the consumption
on the continent at 100000 bales per
week. The stock in spinners hands in
Great Britain is 10000 bales and on
the. continent 4T4, 900 bales. lie figures
that on the basis Of a crop of 100000
bales in America. the present rate of
consumption will leave the stock in
Turopean ports at the end of the sea-
last year. and the mills will have 3o0,
600 bales against $4,000 last year. Mr..
Ellison also adds that the position is
very strong However, admitting that
the statistical position is strong, there
are other factors in the situation call
cu1ated to affect the market adverse
Iy which must be taken into considera-
ton In the first place. SOME attention
must be given TO the cotton production
Of India as we'll as that of Egypt. Mr..
Ellison appears to have omitted this
source Of supply from his calculations.
That Indian cotton VIII enter more
largely into consumption on the basis
OF current prices than was possible on
the basis OF values ruling last season
at this period is evident. In fact the
shipments from Bombay thus far this
season show large increase over last
year, being Z 1000 bales since January
1st.against $1,000 bales for the same
11eriod in 1920 Then there is the ques-
ton OF next seasons acreage.lt is only
natural to expect that upon the present
basis of values, about 5 cents, the
incentive to devote a large area to cot
ton will he much greater than 1t was
last season on the basis of 51b cents
The present lack of outside speculative
demand for cotton and the compare
lively small demand from spinners are
also unfavorable features. Despite Mr.
FIlison's predictions OF shortage at
the end Of the season. the demand
from Manchester spinners has not
shown any meterial increase since the
publication of his circular. In fact
adviees from Liverpool are To the ef-
feet that the trade there is rather at
sea owing To the conflicting reports
RECEIVED from this side as TO the guam
titv cf cotton being held back by plan
tiers and merchants throughout the
south. On the other hand, there are
several factors which should not be ig-
nored, namely, the gradual clearing OF
the political situation, the growing
confidence in the ultimate success Oh
the bond issue, and the revival OF spec
ulatiye activity in the grain and NO
vision market Whether the specula-
tive activity noted will eventually eX-
tend 10 the cotton market remains 10
be determined, but in view OF existing
conditions ii does not seem likely until
there shall be some definite informa-
ton obtainable as to the probable acre
are next season Meantime the mar
ket does not show any decided tenden-
~. but the balance of evidence would
seem to be rather against values.
The cotton market opened higher
on 4 better class of cables to-day than
had been looked for. For time shorts
were Industrious buyers. but large
houses became large sellers. and the
opening advance of 2 10 ) points was
promptly lost. The Chronicles re-
port, indicating delayed receipts on ac-
count Of bad weather, produced a bear
18Th effect. The bulls figure out that
the crop will only reach 6,444, 300
bales, If the amount to come into sight
for the rest of the season does not ex-
coed the government of 1894. Up TO
last evening 222 900 bales had come in
10 sight. The bears are relying upon
the absence of speculative support
which throws the weight Of the cotton
on the spinners, while talk is very
bearish regarding the preparations for
another crop. The market closed
quiet and unchanged prices to net
decline of 4 points.
sRw YORK
Szw yosx, j inu .ry % --CoJton-S Spot
closed dali. ujddlinQ uplauds s 5-f6