The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-17
PRICE MCCORMICK & co.'s. WEEi
IY COTTON LETTER.


The cotton market has given further
demonstration of its inherent strength
during the week. Prices are slightly
lower than on Thursday last,it IS true,
but were the market not III very staole
position. the extreme weakness IN STOCK
Exchange circles, the reports Of British
reverses in South Africa, and the IN
creasing liquidation of January contracts,
would have resulted IN much greater
decline. For the time being speculation
has ceased to be an important factor III
the cotton market, and prices are MANI
tanned by the question Of Supply ana de-
mand alone. During the week there has
been very extensive lIquldafHon on the
part of speculative holders, ard at the
same time the volume Of selling for ac-
count off the bears has materially IN
creased. The offerings, however, have
been absorbed with surprising ease, des-
pite the falling off in the speculative De
mand. The prevailing calm is due TO the
fact that the larger operators are dis
nosed to await further Developments IN
connection with the crop movement; the
effects of the January liquidation, and
some definite indications as to the policy
foreign consumers are likely to pursue in
connection with the procurment of their
necessary supplies. Meantime, spot hold
ers at the south show no indications OF
weakening. and each day makes 1t more
apparent that European spinneTs VIII be
obliged to accede to their demands IN
connection with the Question OF price.
Private cables indicate that the spinning
element abroad is becoming very mllch
alarmed over the present situation. Inc
reserve supplies Of manufacturers nave
been reduced to very small proportions,
and at the same time stocks of cotton IN
Liverpool are rapluIy decreasing. Album
dant evidence of the meagre supplies up
on which spinners have been WORKING
for some time is to be found IN the m
creasing premiums for the near deliveries
III the Liverpool arrival market Eyl-
IDENTIFY it is only the question of a snort
time before Europe must largely increase
her purchases of the raw material, anu
mgon the realization of this fact to
great extent the future course or the
market depends. The discomfort OF Tor
eign consumers has this week been M
creased by the report of the British Gov
eminent that much less cotton IS under
cultivation in Egypt than last season I'd
consequence of the failure OF the Nile
floods. This fact in conjunction with the
shortage in India and the evidences OF
4 very moderate crop in America, must
necessarily cause a fee4ang of apprehen-
sion on the part of consumers who have
been pursuing policy of procrastinatlon
in the belief that the current season
growth of eetton-. would give a superb
bundance OF supplies, EVERYTHING con.
sidered. it seems not at ~ unlikely tnat
very interesting deyelopmeNs may af,sfs
before another crop shall beeNine aV'iiia-
BILE for use
We take the liberty Of quoting We Tor
lowing interesting remarks from the ~ 90
ton Gazette of Liverpool Of DecenlNsf
End
Simple facts are telling against elab'
crate opinion and values are hardening.
Consumers are finding ont that a belief
in large supplies does not produce them.
not does it prevent prices from advancing
in sympathy with the attenuated move
ment. Cotton is neither coming to the
interior towns, to the ports, nor to Great
Britain as it should. to be consistent
with popular estimate of the crop. and
the necessities of consumption. ......
We also know that we cannot buy cotton
In America on basis to supply the