The age-herald., 1898-03-06
Cotton Letter

Cotton Letter
 New York March 5.-After a week of quiet trading. cotton prices are without inIpo . nt change. In spite of bearish factors consisting of the usual heavy movement a falling off in the aggressive support from Liverpool and reports that there will be no important reduction in acreage prices have been well sustained Liverpool sold the new crop heavily and Wall street investors have done most of the buying. Today there was a little an- imation, but the market was unchanged and the opening here was about the same as last nights figures. Prices slowly inn proved after the opening. May opened at 6.16, advanced to 6.19 and closed at SIS to 6.19, with the tone of the market steady. With the exceptions of its na- tural tendency to add to the caution of operators, the possibility of trouble be- tween Spain and the United States has had no material effect on values this week. The matter continues, however to attract the closest attention and May at any time develop into the principal fac tor in the market Pending the solution of this matter and the planting of the new crop the course of prices hangs en- tirely on the continuance of the demand for spots. The movement certainly does not justify any eagerness on the part of buyers, but nevertheless there is no indi- cation of any let up in the demand and it remains the chief bull card The inn mediate outlook, therefore, Is rather fa- yorable. The south keeps firm, sellers are indifferent, the feeling is inclined to be hopeful and somewhat higher prices seem quite probable, but when the new crop gets under way we fear that unfa- vorable weather will be necessary to sup port the market, for the south does not seem inclined to aid by smaller planting to the chances of a moderate yield.
 RIORDAN & co.
 Tn Waii Street.
 New York. March 5-Liquidation was re- newed with energy the stock exchange today, and the Saturdays shorts were soon long enough to effect some very striking declines Large selling orders were exe- cuted for Washington account, as was the case yesterday. There was no news to &C., count for this selling beyond a general feel ing of apprehension over the Spanish situ- ation.
 There were occasional rumors of new de- velopments set affoat, but to a large extent they represented the guesses of room trad CTS as to the motive for the Washington selling. A rally In the late dealings was in part the result of covering by the shorts who had sold early in the day, but the CO., incidence of the rally with the appearance of the bank statement seemed at variance with the statement, which was in some respects a dsagreeable surprise. The con- traction in loans, the falling off in the de- posits and the increase in cash were much larger than had been expected. The fact that the financial world had been going a i0d xxyit h lPlt it- tie harm resulting was accepted bull card in view of the underlying strength of conditions which is thus demonstrated. Nevertheless, the general list shows marked net declines extending to over point in some cases. Union Pacific prefer red, Northwest and Manhattan were the special points of weakness. The grangers were relatively firm, and the coalers also showed resistance to the declines.
 Dealings in Sugar were large, and there seemed to be good support for this stock.
 As measure of the uneasiness felt by the financial community over the status of the coutry's relations with Spain, today's state- ment of the New York clearing house banks makes a striking exhibit. There is in it evidence of greater drawing in of credits and fixing of reserves. The statement was a surprise. It has been known that the demands of the country for money for ac tive have fallen off considerably this week, but the statement nevertheless shows a decrease in cash reserve of nearly $8,- 100000. That this reflects the withdrawal of deposits in New York banks by interior institutions a precautionary measure to strengthen their reserves is beyond doubt. The enormous. contraction in loans of S13,-' 62O,OOO representative precautionary measure of the New York banks and explains why money for purely speculative purposes has become scarce, why liquidation on the stock exchange has been forced and why prices acutplV daDrpSSed. If iS DOsSibia that some part of the loan contraction is due to liquidation on sterling exchange col lateral. which has been withdrawn from use in importing gold. But it is the general belief that the gold imports have been made on the sale of new bills against London