The age-herald., 1898-05-10
Hnven and Stont on Cotton

New York. May 9.-In the cotton market
 the week opened with some display Of
 weakness, and the liquidation of purchases
 recently made upon the assumption that
 war between this country and Spain would
 greatly restrict the cultivation of the com-
 ing crop, and Liverpool particularly seems
 to have jumped to the conclusion that the
 decisive victory of the American squadron at Manila foreshadows an early termination
 of the war. Towards the end of the week there has been a show of increasing strength probaly due somewhat to the rise
 in the stock and grain markets, causing a
 general disposition on the part of the short
 interest in cotton to reduce their outstand- ing contracts. This sympathetic influence has also brought in some outside buying, and indications are not wanting that the recent reaction has been carried too far and the speculative pendulum is now likely to swing in an upward direction. Increas- ing attention is paid to the crop reports, and apparently the season is beginning rather unfavorably. In this connection, we quote the following from the governments weekly bulletin: Except in Texas reports concerning cotton indicate that it has come up to poor stands generally, and that 1t has made slow growth during thet week, while in the Carolinas the crop has suffered injury from frost. Considerable planting remains yet to be dne in Mississippi, but the bulk the crop is now planted. In Texas cotton has made rapid growth over the central and southern portions of the state, and it is coming up to good stands in the central and northern prtions.". It is recognized that the crop situation will fur | nish the key to the permanent course of | values during the next few months, and 1t | Is well to remember that cotton is now sell l ing upon an exceptionally low basis for this l period of the year. Against today's quo- tation of 6.3o for the August delivery we have the comparison of 6.90 for the August delivery in the same week of 1895; TBS in 1896, and 7.55 in 1897. The present surplus is moderate, while Europe is reported to be short of cotton, and must obtain large new supplies from this country. In view ofstne favorable conditions. prevailing in the for eign spinning centers, we think that the unfavorable reports from New England manufacturing centers can to some extent be disregarded. as the conditions in this section seemed to be abnormal and not alto gether produced by general trade condi- tions The receipts at ports this week have been slightly more liberal, but the exports continue heavy and the spot markets a the south are firm, with a good demand. We have previously called attention to the fact that the high price of wheat and corn has resulted in an increased acreage planted in these cereals in the cotton growing states and we note that the North and South Carolina state reports estimate the decrease in cotton area in cotton area at about one-thrd with the corresponding in crease in acreage planted in grain. There seems good reason to believe that the sur plus to be carried over from the crop of '97 will be comparatively small, and that the crop of '9S will be marketed upon higher plane of values. !.