Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1900-10-31

y |Mt $eogle'
30.
Among the influences serving to hold
any further advance in cneck were the
prolongation Of the South African war
the serious disturbances in China, re-
ports from all centers of large stocks
Of manufactured goods in first and Sec
ond hands, and the hope Of improved
weather conditions throughout the cot
ton belt, which might materially in
crease the current crop above earlier
estimates.
] What tended, however, to counteract,
these adverse influences and made
any material decline improbable was
the general belief that the South Al
rican war could not last much longer,
that the Chinese complications would
somehow be settled without involving
the great powers in general war, and
the current crop being admittedly sew
eral weeks late, would be seriously cut
off in the event Of early frost.
| Over and above these problematical
differences Of opinion were the follow
ing recognized facts in the case, which
gave substantial encouragement to
those who believed in the higher price
of cotton:
First. The visible supply of the
world was, on September 1, 1900, small
er than it had been on the correspond
ing date for many years.
| Second. European spinners were
known to have smaller stocks on hand
than for long time, they having
bought little more than hand-to-mouth
supply during the latter part Of the
crop year, believing firmly in an abund-
ant yield from this crop. ."iI =.
Third. Liverpool spectators were
said to be heavily short Of cotton for
future delivery, both at home and in
our New York market.
| Fourth. The spot markets through
stocks, and cotton was being firmly
held at higher prices relatively than
ruled in New York. ,:
Thus It was that at the opening of
this season those who studied all the
conditions closely and weighed the
pros and cons dispassionately, found
no temptation to bear cotton; but were
easily converted to faith in material
ly higher prices.
Through this widening friendliness
to the bull side prices hardened imme-
|
ing the first week Of the new season an
advance Of over half a cent a pound
for contracts for future delivery was
scored. In the course Of this advance
Liverpool became thoroughly alarmed,
and outstripped New York and even
the Southern market in the upward
movement.
The advance was so rapid that on
September 7th a considerable number
OF Massachusetts, spinners held meet
Ing to consider the seriousness Of the
situation and to devise ways and means
for their belief. They resolved to buy
no more American cotton for immedi-
ate delivery, even though this with
drawal from the market should neces-
state shutting down their mills. This
radical action was expected to paralyze
the American markets and make q
precipitous decline in cotton and there
by enable Europe to supply her press
ing needs at great advantage. This
action failed Of its purpose. Futures
on the New York cotton exchange suf-
fered a spasmodic decline, but recov-
cred the loss before the day was over,
and the spot market throughout the
South was not budged by the British
resolve.
At this stubborn resistance In our
home MAJ hels, 1uIope look lIesn lri6nt,
giving the Liverpool market greater
boost on Saturday, September 9Th,
than on any previous day during the
current advance. New York respond
ed enthusiastically to Liverpoops re-
markable advance and closed Satur-
day, September 9Th, with all the actiN
options well above cents, and show
ing gain for the first nine days Of the
new season Of from half to three
quarters Of a cent a pound.
Following this sensational 10 days
| record came the fndescribable storm Of
Saturday night and Sunday, sweeping
as, causing terrible loss of life and de-
stroying millions Of dollars worth of
property. The first accounts Of the
lamentable disaster filed the New
York papers Monday morning and were
cabled to Liverpool before the opening
Of the markets there. The result was
tremendous. The Liverpool market
opened in the widest possible excite.
ment, carrying prices In whirl to the
highest level reached for years. The
advance at the opening there over Sat
urday's close was nearly cent q pound
for spot cotton and from a half to
three-quarters Of a cent pound for
futures.
The New York market opened in full
response to Liverpool's wild advance
for futures, contracts for September
and October delivery selling on the
opening call at 10 cents, being from so
| to 60 points above Saturday night g
close. Later in the day September sold
| at 1880, being full cent a pound over
Saturdays price, and spot cotton was
quoted at LOB cents, being the highest
price reached in ten years.
nttr rttncr "a ruhn a
exchange continued in a state Of in
tense excitement, bordering sometimes
on decentralization and panic. The vol
ume Of trading was enormous. and yet
under the strain of this unexpected
condition there were but two small
failures announced.
The government report for August
was issued at IL o'clock, and while 1t
made a very unfavorable showing for
the growing crop. which would under
ordinary circumstances have been suf-
bulls, 1t was so unimportant, as COM
pared with the disaster in Texas, that
little attention was paid to 1t.
It is too early in the season to make
anything like reliable estimate Of
the current crop; but from all tnfor-
nation we have. covering the entire
cotton belt, we do not think that 1t will
be any greater than last years. If that
much. 1t is spotted CROP" and that,
in itselI, makes any prediction Of the
total yield unreliable.
Besides that, the extent Of the dam
age done by the Texas disaster must
be an unknown quantity for sometime
to come, and this makes another ele-
ment Of uncertainty in estimating the
crop. However, we believe in a pros
porous year for the cotton trade
throughout the world, and while fluc-
tuations will most likely be frequent
and violent, we do not see any reason
for believing in much, If any, lower
prices than at present prevail. On the
other hand, a very much higher level
may be reached If consumption proves
as great as Is expected, and the sup