The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-01-06
THEY GIVE THEIR REASONS.
Price, Mccormick & Co. Tell Why
They Advise Farmers to Sell
Cotton Now.
OFFICE OF
Office OF
Price. Mccormick n Co,
70 Broadway. New York.


New York, Jan. J.-(Special)-
Much criticisms has been directed to-
ward us because we have advised the
South to accept the present prices for its
cotton, and as we believe that this criti-
c0m is unjust and uncalleti-for we beg
To submit herewith our weekly cotton
circular. (Which states i'll full our posi-
tiOn and our reasons therefor:
The cotton market during the paSe
week has been altogether sensational
one, as Il result of the very small crop
moreover for the month Of December and
especially for the last week of December
foreign consumers of the article seemed
at last TO have come to an appreciation
of the situation and at the re-opening OF
the Liverpool market on Tuesday, Jan
nary Ind middling uplands were quoted
at / 9-16. an advance of fully ~ pence
or 34c per pound over the value of cot
ton for the corresponding week last year.
Feeling that the price was fair one
and that it was Il good policy on the part
of merchants to sell their goods when
there was an active demand for them, we
advised our friends generally to accept
present prices for their spot cotton, and
as a large portion of the trade seemed
TO accept this view as sound. considerable
reaction in value has occurred, although
The present prices still show the very
substantial advance of nearly cents per
pound over those ruling last August
when Mr.. NELL first promulgated his
large crop estimate. Much criticism OF
what has been termed our change in
front has reached us. We. therefore,
feel justified in making this weeks issue
of our circular somewhat personal and
perhaps improperly egotiStical. but 9th
arwise we cannot fully explain our at
titude.
For the past six months we have
spent large sums of money i'll collection
and discrimination of information i'll re-
gard to the cotton crop. We have felt
that Mr.. Neil'S estimate was misleading
and great injustice to the South We
have done everything in our power to
put the actual facts of the situation be
fore the cotton world. In the opinion
of many the advance which has oc-
Cured has been largely attributable 10
he recognition which our work has pro-
cured for the facts of the situation On
November 9th. 1899, March contracts
sold in New York nj 7.64. at the same
time January and February contracts
sold in Liverpool at 4.03. On Tuesday.
she 22nd, of January. March contracts stl.
i'm New York at 7.52 while January
February contracts in Liverpool sold at
t.23. 1t will thus be seen that despite
the fact that during the month of De
cember the crop movements had been
: ma Her than even the most Sanguine bulls
anticipated-the New York market was
II points lower. while the Liverpool
market was at the top price of the sea-
son. The action of the market, viewed
in the light of the record, convinced us
that its position speculatively. was lack
ing in strength and that ii was what is
technically known as an foger-bouSht
market In addition we received about
This time the final reports of some five
gentlemen, expert observers. whom we
had employed during the month of De
celnber to travel throughout the cotton
States. These gentlemen were assigned
as follows to one was given the States
Of South Carolina and Georgia. to an
other Alabama and Mississippi, TO Il third
Texas and south of the Texas Pacific
road. to a fourth Louisiana. north of
line drawn from Alexandria 10 Shreve-
port and Texas. north of Texas Pacific
road. to n fifth Arkansas and the Indian
Territory. Our letter of instructions in
connection with this investigation was
as follows:
December 6. 1899.