The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-01-21

New York. Jan. 20.-Hubbard Bros. &
Co., in their weekly market review, say
of cotton:
During the past sixty days the mar
kets have been sustained in the face of
increasing crop estimates by those who
have believed that the price was below
the cost of production and. therefore on
the approach of another planting season,
there would be positive evidence of a re-
duction in acreage which would point to
smaller crop next season. In short they
believe that conditions were similar 10
those in 1892 and 1895 and that similar re-
suits would follow after a season during
which the best planters have doubtless
lost money. For the past two weeks
they have gradually lost faith in the
probability of a large reduction in acre
age and following the lead of foreign
spinners, they have not been buying
enough to withstand the continued pres
sure of offerings from the South In 1892
and 1895 it was thought that the South
had learned of its ability to control prices
by reducing the production and that 1t
would this season pursue a similar policy.
We believe it will, but the mass of the
trade and outside buyers would like to see
and read more evidence of the success of
the movement started at Atlanta and
Memphis to reduce the cotton area. They
do not see in the Southern press the same
unanimous expression of opinion that the
reduction will be advantageous to the
planter or that it is the only policy which
can prevent lower prices next season.
Continental spinners who have been the
largest buyers this season appear to be
acting upon this same line of thought and
they have not shown the same disposition
to continue to absorb the offerings on the
present basis of values as they did during
December. Our American spinners, in
view of the changed economical condi-
tons which confront them in marketing
their goods, are not disposed to buy ex-
cept at concessions. With therefore, two
of the three buyers of the world inclined
to pause and take a fresh view of the
situation it is not surprising that we should
have declined VIII the markets con-
tinue to move toward a lower level, is the
question which now interest us all. The
answer will depend entirely upon the ac-
ton of the South. If it has learned to
produce cotton proftably on the basis of
sc there will be no reduction in acreage
and merchants and manufacturers will
have to admit that their position is wrong.
II is the fear that it will prove wrong
which is now weakening prices for it is
an old adage that fears not facts make
values"
SHOULD 1t become evident during the
next sixty days that present prices are
not profitable there will be a substantial
reduction in the acreage and the sale of
fertilizers which will lead to an active
market. We believe the reported increase
in the wheat area in the South will be fol-
lowed by an increased area in corn and
oats, and that little new land will be
cleared for cotton planting, as we can
not yet believe that there is any other
logical conclusion 10 be reached when cot
ton is bringing less than the basis of SC
in the interior. In the meantime the
problem for the South is to convince the
spinning world that it does not intend to
raise bumper crops of cotton at present
prices. Until this is accomplished there
will be small chance of a permanent adj
vance in prices"