The age-herald., 1900-03-06
BIG BUSINESS DONE IN COTTON FUTURES Fertilizer Concern Makes a Big
 Sale in Atlanta. BASED ON THE COMING CROP The Price Was 3-4 Gents, Which Nets the Concern $2712 Per Ton
 Cotton Can be Sold as
 Fast as Bought
BASED ON THE COMING CROP

Atlanta, Ga, March 1.-The Journal says: Cotton took another leap today, and at the closing of the market this afternoon mid ding spot was selling in New York at 1S-16 for upland and 10 1-16 for gulf Atlanta spot jumped to ess, at which point the staple is worth about s47 per bale, which is more than 1t has brought in some years. At the present price cotton is worth about $10 per bale more and the crop about $9,00O,0o0 more than it was on new year day.
 The cotton market is excited and specu- lation heavy, but the most remarkable and significant feature of the present situation is that cotton houses are buying next fall s crop, seven to ten months ahead of time.
 This is a purchase of futures in the ordin- ary sense, but contract to take actual cotton when 1t natures and is ready for market.
 Prominent cotton firms are offering to take next falls crop at 711 to cents, and a great deal of cotton has been sold to them already. It is reported on what appears to be good authority that the fertilizer com panys have already sold their contracts at about "A cents to cotton houses.
 Big F., tilizer Sale
 The Virginia Carolina Chemical company supplies large part of the fertilizers sold in Georgia and other southern states, and is reported to have sold an immense quan- tity at $50 pounds of cotton per ton. This would make the Virginia Carolina Chemical company long on fall cotton, and it is re- ported that they have sold or agreed to sell their cotton contracts to a prominent Att lanta house for TAG This would net them $27.12 per ton for fertilizers which sold last year below $20. Thus a large part of next seasons cotton crop of this section has been bought with fertilizers at boom price and sold for cash against the market. The question naturally arises now can the cotton houses afford to buy next falls crop? The answer is easy. They can sell it as they buy 1t, ahead of time and they are doing so. The speculative market is such that fall cotton can be sold in New York at fraction over Sc, and when a cotton firm buys cotton for actual delivery next fall, 1t protects itself from the hazard of the market by buying futures to the same extent
 The question arises again, how does it profit them to buy and sell at the same figures, paying commissions and other expenses?
 ' They contract ahead of time for the hand fling or so much cotton, on every bale of which they make the ordinary profits of the business.
 Securing Business Ahead of Time
 Tn other words they are securing business ahead of time and ahead of their competi- tors.
 Whether they have any such motive or not, there can be no doubt that the offer of 71a to cents for the fall crop will in- duce the farmers to plant heavily.
 The trouble about it, so far as the farm CTS are concerned, is that it will induce many to plant beyond their means who will not be careful to make themselves in doing so. The publication of these advance offers for next falls crop will affect the action of hundreds of thousands of planters who will be in no wise protected. The wide open offer will of course, protect no one who has not a contract, but the circulation of the offer will be taken the judgment Of the cotton man on nextefalls prices.