The Savannah morning news., 1900-12-24
~ =. \. RoE-r. a CO.. New Work.

nS =. \. Rogers y Co.. New Work.
To the cotton trade an interesting stu-
alton presents itself Ia the prevailing aif-
ferences between the near and morn dis
iant options. and offers lea our opinion
a splendid opportunity To those holding
actual cotton 20 dispose of same and buy
future contracts az an actual profit ON
the transaction.
Cotton Tor May delivery Is worth s. "a
bale OF 80 points less than in December,
or now, while Ia September the staple Is
worth S87s per bale. or a. points. less
than current prices.
The above condition has been brought
about in thc FIRST place hy the Inherent
strength OF spot cotton and iys hardening
tendency on the near months also tree
mendoas selling OF the more distant 2p-
tons On anticipation OF a bumper crop
next season. Then the small stocks here
New Orleans and Liverpool, tho epc 'ula-
tive cotton markets OF the world, VIII not
permit OF aggressive bear operation in
the near months for thc fear Of squeeze
or corner made possible hy the small
amount % tendcrabie cotton Ia sight ana
bull manipulation. You will recall ike
situation last season and the disastrous
ending OF bcarish plans. which created
such conditions in anticipation ot a pos
slhlity too remote To discount accurately
or with intelligence n history should
repeat itself and next seasons crop
would only meet consumptive require
merits and add somewhat TO the now &C.
pleted stocks a. happening KIN Ia that OF
last year will undoubtedly occur but this
IS superstition, aud II Is our Intention
TO deal only with actualiucs.
To the planter merchant banker or COY
ton factor holding SPOT cotton for invest
a n "a
disposal OF his SPOT investments by trans
ferrlng same 20 a future contract can be
made at an immediate proht OF from TWO
20 six dollars per bale, ana again carry
ing contracts costs but 10 cents per bale,
margin required 90 protect investment
much smaller than funds necessary q"
carry actual cotton. thus saving on car
rying charges. interest ON money invested
and making a clean. clear pr"ht on '"e
Investment 10 begin with
II normal condition existed the dlher-
onces now prevailing would De nearly re-
vcrsed. or September cotton would he. iu-
stead Of 1856 points under December. hoont
ico points above. To bring about natural
conditions there must either be decline
IN spot cotton or a big advance IN con
tracts for the more distant months lhal
these differences win evctually be ADJUST
ga bv either OF the above causes Is con-
cotton market and more especially by
the events OF this season. The sale OF
actual cotton at existing prices ana the
purchase OF September contracts viii nee
rssariiy be- a paying transaction. whether
spot cotton declines or the September olD-
ton advance 20 adjust the present alb
normal differences
In view OF the fact that this seasons
consumptive requirements VIII eucroach
still further on the visible supply, max
ing same next september smaller than
that that existed Sept. T. 1870. and. fur
thcrmorc. the well-known fact that the
new crop viii not move 10 any extent
until the middle OF September makes the
September option purchase IN preference
10 any other month. owing to present
existing differences and above mentioned
facts
Viewing cotton conditions generally We
see nothing in the situation that would
cause a decline Of moment but much that
necessarily viii warrant higher prices IN
the not distant future.
New York Dec. 81. 1907.