The age-herald., 1898-02-06
| otton Letter.

New York. Feb 5-The failure of the immense crop movement to depress the cotton market this week has been a source of surprise to, almost every one. The stag nation in the trading was broken today by a smart advance and the week ends with a more cheerful feeling prevailing. Liv erpool shorts were covering today and the continent was buying in that market. Prices there advanced 1h-64ths. This rise. took our local operators by surprise and those who were short scampered to cov- ering. The market opened points higher and after the opening improved still fur ther The volume of outside business was not great, but New Orleans bought freely and several large local short lines were taken in. May opened at 5.88 advanced to 5.91, closed at 5S9 to 5.9O with the tone of the market steady. The southern markets continue firm and there seems to be an endless demand for cotton at these prices. It is doubtful however, if this demand would follow any substantial rise in values. There is certainly enough cotton to supply all wants this year, and it seems to us that about the only sole basis for any big rise would be a growing for the new crop so unfavorafbie to insure really mod crate yield. In that event a whirlwind of speculation and a gooEs spinning business probably give something like a repetition of the great advance in the summer Of 1895. Of course, every one knows that cot ton is low and that buyer at these prices with the capital and the patience to wait a twelve-month if necessary, would have the chances largely in his favor, tn all probability. to make money. But we hardly think it prudent for people without ample means to buy at present on the chance of some disaster to crop the plant ing of which has not yet begun.
 RIORDAN & co.
 -s-.- T Nvri Strea-.
 New York; Feb. 5.-Todays stock market was lifted to a higher level by a conspicu- ous strength of comparatively few stocks. l. was noteworthy that the Vanderbilts, which gave the initial impetus to yester- days advance, showed the effects today of profit-taking, Lake Shore losing points and New York Central small fraction.
 Michigan Central, after bounding upward at the opening, reacted over point, but closed with a substantial gain. The far reaching importance of the merging or New York Central and Lake Shore and the prospects of additions to the plan con- tinued to have a marked sentimental effect in the whole market. The possibilities in the way of reduced expenditures for admin istration and stability of rates for traffic from consolidation are canvassed with eager attention by dealers In securities. Pennsylvania was conspicuously affected and the long-sustained advance in the stock of its subsidiary company, Pittsburg, c. c. & St. Louis, is pointed to as evidence of closer relations to come. Burlington rose strongly on rumors of the ripening of the refunding plan and a pending increase in the dividend rate.
 General Electric, Lake Erie and Western preferred and Lackawanna were markedly strong, and Norfolk and Western preferred continued its upward movement. There was reactionary tendency in the Lake Erie and Susquehanna and Western stocks on realizing. The recent advance is ac- counted for by we'll defined reports of plan for exchanging the Susquehanna stocks for an undetermined percentage of the Erie stocks. Great Northern preferred sold at further decline of 2 points and was bid down still further, the various reports for increased capitalization being so conflicting as to lead to the conviction that no arrangement has been made.
 The heavy increase of over $11 OOO 900 in deposits of clearing house banks for the week marks the continued flow of funds to this center and the withdrawal of gov- ernment deposits must be allowed for in estimating this movement. The expansion of nearly $000,00 in loans, though heavy, falls far short of absorbing the total of the increased deposits. The activity in the stock market undoubtedly involved a large amount of borrowed money, and it is probable that other speculative mar kets have drawn on this center for funds during the week.
 There Is reported also good supply of attractive names in the commercial paper