The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-05-29
HAVEN & STOUTAS COTTON LET
TER.

New York, May 2S.- Especial THE
week has been one Of advancing prices
both in the spot and contract market for
cotton The summer months have shown
the greatest strength. and the August
option which two weeks ago was selling
ne the same price as October, is now
nineteen points over that month and the
friends OF the August option are CORE
spondingly encouraged. 1t is worthy Of
remark that, in Il year when the crop is
estimated ut eleven million bales, as
early as the end of May the August OPP
ton is selling nearly one dollar per bale
over October. 1t is TO be noted in this
connections that the Liverpool cables con
tinue to show practically no response to
the recent improvement in prices here
and, as a consequence, the parity of
prices between the two markets has Wild
ened considerably. If this continues, t.
will tend to restrict foreign purchases
and to keep cotton in this country. If,
however there exists the large short in-
terest i'm the Liverpool market which is
claimed by the bull interest, prices may
be forced up here TO a point which would
cause the Liverpool shorts so much anXi-
ETY., that an attempt to cover would give
MS a rapid rise. This, however. does not
seem likely at the moment. The total
stock in this city is 143.6S0 bales. against
1J0.722 last year. Total stock mt all
United States ports 55S,22S bales,
against 3TS.909 last year, and 335,27G
in 1896. Total stock at the counted in
terror towns is 2373 1893 bales against
112, 1872 last year and 163,01T in 1896.
There is no reliable estimate of the
amount left in the uncounted interior
towns. and in farmers hands. With
this supply, under present conditions Of
trade it would require n vast amount Of
capital and an extraordinary amount of
missionary work and great facilities for
disposing of the cotton before the ar
rival Of the new crop in September, to
run a successful deal in the August OPP
ton. 1t remains to be said. however.
that ont of the many who believe that
the recent advance in the summer
months is unwarranted. there are few
who have the courage to commit them
selves to any extent on the short side in
anticipation of decline. Thoman's
June crop report, issued today, places
the reduction in acreage from last year
Mt lis per cent and the condition of a
crop to date at SS.5 per cent as against
NJ per cent at the same time i'm 1897.
As the matter stands today. there is
nothing to indicate that the crop of 1899
will fall short of the crop of 1897. and
If there is to be any decided reduction.
it must come from future unfavorable
climatic conditions. But the prospect
for another large crop does not, in our
opinion, form an altogether good argu-
ment for prospective decline i'm cotton
values, The low price for the American
staple which has existed since last fall.
has stimulated consumption 10 n remark
able extent. and one Of the notable re-
suits has been the decreasing use of the
inferior india staple. Tt would appear
that our superior American product is
destined to drive out the inferior article
ana give our Southern planters a market
capable Of absorbing even larger crop
than any heretofore raised