The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1897-11-03
DEPRESSION IN COTTON.
SHEPPERSO SAYS IT IS DUE TO EA-
GERNEss TO SELL.

Dealers Of South at Fault Cu~e Same Lot
of Cotton to Several Different FiIms,
Hence Large Estimate YtSid- Remedy
for the Evil.
Since the beginning CT The rev sea-
son on Sept. l cottoss has declined i
cents ger pound in New York. and
correspondipely in all American mar
kets. The present price is the lowest
stree March. 1895, VIXEN s&les were
made at 5 9 Is certs-a prics lower
than during apy season since 1S4S.
The price is now ! ! cents lower than
8 year $50, despite the fact that on
October Is the stock Of cotton IN all
the Americ- markets was $50 0C0
bales less ii q at the corresponding
time last ye, Not only this, but the
stocks of,all descriptions # ccttnn IN
the European ports were 269 eco bales
less than 81 the corresponding tire in
1895; 991, ,000 less than 1895, aEd 734.
GOO less than 1894, while the com5iEec &
stocks of Europasu ard American
seinners ae moderate and mach less
than year $50.
The season opened with small sup
plies of cotton in the markets end tie
mills and the actual statistical position
was and is strong. The chief CAUSES
of the existing depression are the
opinions held by many spinnerS that
our crop will certainly resch, and
msy considerably exceed, 10000 OF
bales; the unsatisfactory condition CT
the cotton spinning industry in Eng
lard, with the fear CT a striSe in the
near future in view o. the pronosal OF
mill owners to reduce wages OF opera.
tives; the depression in trsde IL Some
sections of the continent IN ccnse
quence Of poor crops, etc; the tempo
rary dnllness IN the cotton gccds trade
of the United States, and C1ore espac-
tally in Fall River, and the liberal Of
terines of cotton by southern interior
mel elchancS and brokers' TO northern
snd European markets st constantly
falling prices. l dc not think there
will be a strike in The English mills.
In my opinion the persistent oferinss
of cotton by southern dealers have
contributed to the depression more
than all other causes, inasmucn IS
they indicated weakness and tended
to corfrm the idea of large crop
The prevalence of yellow fever at
New Orleans and other southern ports
ard the closing of the Offices OF some
of tie cotton buyers and exporters IN
each of these places, broke up the
business connections of many Of the
cotton buyers and shippers of the in
terror towns, and these interior snip.
pers were forced to seek new connec-
tions in this country and Europe, in
oroer to find an outlet for the cotton,
which it was their business to buy, as
marketed by the producers, and to sell
to Europe and the northern and east
ern markets. In order to sell to new
customers it was necessary that they
should offer cotton at lower prices
than the old correspondents of the
firms to whom they were seeking to
sell cotton. Thus 8 sharp competition
was started, with the result that nor
thern and European cotton spinners
and dealers we're constantly receiving
cfers of cotton st low prices. South
ern dealers, in their eagerness to sell,
would simultaneously offer the same
lois of cotton to several firms, and this
would cause the quantity Of cotton so
offered to'sppear many times greater
than it reslly was. a lot of 1000
bales, if offered to two firms in each
of the markets of Boston, Fail River,
Providence, New York and Liverpool
would have the weight on the general
market Of the Offering OF 10, 900 bales,
and it must be renen bereo that all
these markets are in hourly conmu-
nicatlon by means Of telephone, tele-
graph and cable.
Opinions differ as to whether the
decline has now proceeded far enough
or whether the price will fall still
lower before any subs antial reaction
to better prices will Cccur. (lt is per-
fectly evident TO me that sooner or
later reaction must come. } It is only
a question OF time, and the greater the
decline the greater will be the re
bound It is always so. Taking q
broad view of the present aud pros
peclive supply and demand, AID OF
the causes OF ihe existing depression,
think the decline in cotton has bsen
greater than the conditions warrant
ed, and, therefore, that a moderate re.
ac!ion, which might easily develop
into 8 decided Cne, may occur at
any time. Frcsts in the cotton
belt, or liberal buying of spinners,
investors Or speculators, would, a.
once, check the declining terden-
cy, ana turn the current of the
market quickly in the opposite
direction. The FIRST sign OF a decided
reaction would undoubtedly cause lib
eral buying by American and foreign
spinners, who would suddenly discov-
er what they ought 10 know now
that cotton IS cheap and 6 safe invest
ment, even at prices considerably
higher than th1se now ruling. There
is doubtless large ''shQrt interest" on
the New York Cotton Exchange. No
people are as lick 10 see tie icon,
ing of rising ti6e in prices as those
gentlemen who sell for future delivery
thousands of bales Of cotton which
they do not happen to own previous to
the little fornality OF selling it. When
they scent danger" and start IN 10
buy futures" 70 cover their snort
sales, they viii rush the prices up on
themselves, and on the belated spin
ners. An advance in futures" start
ed by the buy ing enlightened bears"
to cover their short sales, and suS
tanned by the legitimate buying Of spot
cotton by spinners would quickly at
tract to cotton Inc stteat;on Of outside
inventors and spectators, and thus a
permanently higher range Of prices
mightsuddenly result. European and
American spinGers alike complained
Of unsatisfactory business last season,
but the fact remains that on each
side Of the Atlantic considerably more