The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-03-06
DuYrNG AHEAD.
Cotton Men Making Offers for Next
Nenr's Crop.l

Atlanta. Ga. March 5.-Tho Journal says;
Cotton took another lean today and at the
closing OF the market this afternoon middliug
spot was selling In New York at 1850 for
uplonds and 10 t-l6c for Gulf Atlanta spot
jumped to 9ssc. at which point tho staple Ia
worth about A7 per bale which Is more
than II has brought in years. At the present
nricee Gotten Is worth about $40 per bale more
and th5 CROP about $50. 900 400 moro than 1t
was on New Years Day
The cotton markehis excited aud sneCun-
ton heavy. but the most remarkable and
sgnifoant feature OF the present situation
Is thpt cotton houses are buying next falls
CROP seven 10 ten months ahead of tiins.
TINS is not purchase Of futures In the ordi.
nary sense but contract to take actual
cotton. when II natures and Is ready for
market Prominent cotton firms are Offering
to take next falls crop at 7isc to Sc and
great deal Of cotton has been sold to them
already. II Is reported on what appears 10
be good authority that the fertilizer COM
panies Who viii receive an immense amount.
Of cotton In payment for fertilizers have al
ready sold their contracts at about iMc 10
cotton houses. The virginia Carolina Chemi
cal companv supplies large part Of the
fertilizers sold 10 Georgia and other Southorn
states. ana iB rCnortcd to have sold an i'm
monse quantity ut $50 pounds Of cotton por
ton. This will make the Virginia Carolina
Chemical company long on fall cotton and
II rs reported that they have sold or agreed
to SCH their cotton contracts to q prominent
Atluhla cotton mousse Tor t9tC. rms Womb
net them S2I T. TER ton FOR fertilizers which
sold last wear below $50 Thus large pari OF
next ecasuus cotton CROP of tbs section
has been bought with Fertilizers with a boom
price and sold for cash against the market
Tho cues ton now Naturally arises, how can
tho cotton houses afford to buy next fairs
cror. The answer is easy, They can sell 1t
as they buy It. ahead OF time aud they arc
dOlng so
Tho speculative market is such that fail
cotton can be sold In New York nt frac-
ton over S cents, and when cotton nrm
buys for actual delivery next fan IL protects
itsclf from the hazard OF the market by buy
ing futures 10 the same extent
The question arises again how does it
profit them 20 buy and sell a. the same fig-
ures, paying commissions and other eXpenses2
They contract ahead OF time tor the hnnding
Of so much cotton every bale OF which they
make the order profits Of business. In other
words, thcy are securing business ahead Of
time and ahend of their competitors Whether
they have any such motive or not, there can
be no doubt that the offer OF iiaqsc for the
tall crop VIII induce the farmers to plant
heavily
The trouble about il so far as the farmers
are concerned rs that il win induce many 10
plant beyond their means, who will not be
careful to mako themselves safe IN doing so
The publication Of these advance offers fol-
next tails crop viii anect the action of nun.
afeds oi thouspndH OF planters, who will be
IN no wise protected. Tho wide open ofT9f
VIII ui course protect no ono who has not "A
contract, hut tho circulation OF the offer win
be taken as the Judgment Of the cotton man
on next ililF prices.