The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-03-09
COTTON LETTERS.

New York. March S.-Price, Mccormick
6. Co. publish the following:
The cotton market has again been char
acterized by extreme weakness, although
the early cables from Liverpool showed
some tendency there TO resist the decline,
the power of resistante seemed TO be
short-lived, and before the opening of the
New York market a declining tendency
was again evident. Normally, the New
York market ought to have opened at a
substantial advance, but the overoought
character of the market was apparent,
even at the opening, and the advance was
fitful and of short duration. Thereafter,
and until about lunch hour, the market
was nervous and many who belieyed that
the downward reaction had about spent
its force again bought contracts in the
hope of a rally. In this they were disap-
pointed, and toward the close fresh weak
ness developed, final figures being the
lowest of the day and about 26 points I'M
der those of last evening.
The cotton market during the past four
teen days has traversed in extreme limit
upward and downward of 1913 points, May
contracts having sold at S.4Sc Feb. q;
96Sc on March and S95c to-day. In
other words. it has presented an oppor-
tunity of profit of nearly cents per pound
to the man who was smart enough to buy
at the bottom and sell at the top. Such
commissions generally mark the
end of any sustained bull mar
ket They do not encourage
conservative trading, and fail 90 attract
a substantial class of investors whose pur-
ohases can be relied upon as a permanent
element of strength. They characterize
generally the operations of numerous and
mercurial public, and this public having
seen cotton at 915 cents is now prone to
buy it upon each reaction. Disappointed
then in the hope of an advance they again
sell ii at a loss, and still the process is
repeated, with the result of adding con-
stantly weakening element to the mar
ket.
In Liverpool the same situation obtains
to a great degree. Our cable advices re-
ceived at 3 O'Clock, New York time which
is the equivalent of p. m. in Liverpool
were numerous, and inquiries as to how
the market here was closing showed great
anxiety on the part of our Liverpool uor-
respondents, who, in view of the weak
closing here, fear very decided decline
in Liverpool tomorrow. If this should
be realized there will be fresh supply
of liquidation in New York and probably
lower prices, in our opinion. The whole
truth is that we are in process of liquidat-
ing probably the most stupendous cotton
speculation that has been known within
the past decade. A study of speculative
preoedents leads us 20 feel that this pro-
cess will not be completed until cotton has
declined below IT'S normal value as deter
mined by the relation of supply and de.
mand. At present, those who are buying
and selling, cotton are doing so almost
entirely with reference to market ten
denotes and ignoring the underlying facts
of the situation. While a considerable
long interest was liquldated on the ad.
vance it is our opinion that a larger and
weaker one has been created on ne
decline, and until the article has touched
a price that affords the conservative ana
real investor an attractive opportunity TO
buY and hold persistently with a reason
able certainty of profit, the limit of the
decline VIII not have been measured Tins
price has not yet been reached Mean
time the urgent wants of spinners who,
aside from the bona fde investor are The
only persons who buy cotton to keep. have
been supplied, at least for the next sixty
or ninety days. Price, Mccormick & Co.
Id.