Bradford County telegraph. (Starke, Fla.) 1888-current, 1900-03-09
COTTON JUMPS
TO TEN CENTS
Product Brings Highest Price
Known In Years.
DEALERS BUYING UP THE CROP
They are Paying a Good Price For
Delivery Next FaII--Fiow the
Work Is Done.

Monday at the closing of the cotton
market in New York middling spots
were selling in that city at 9 1916 for
uplands and 10 1-16 for gulf. May
closed Saturday at 1859 and Monday
rose TO 9.54. Atlanta spot cotton
jumped up to 81, at which point the
staple was worth about S47 per bale,
which is more than it has brought in
some years.
Cotton is worth about $40 per bale
and the crop is worth about $50, 600, 900
more than it was on New Years day.
The cotton market is excited and
speculation as usual is heavy, but the
most remarkable and significant feat
nre Of the present situation is that
cotton houses are buying next falls
crop, seven to ten months ahead of
time.
This is not a purchase of futures in
the ordinary sense, but a contract to
take actual cotton when it natures and
is ready for market.
to take next falls crop at II to s
cents, and a great deal of cotton has
been sold to them already. 1t is re-
ported on what appears to be good
authority that the fertilizer compa-
MES, who will receive an immense
amount Of cotton in payment for fer
tilizers, have already sold their con-
tracts at z, cents to cotton houses.
The Virginia Carolina Chemical
company supplies a large part of the
fertilizers sold in Georgia and other
southern states, and is reported to
have sold an immense quantity at $50
pounds of cotton per ton.
This would make the Virginia Caro-
lima Chemical company long on fall
cotton, and it is reported that they
sold or agreed to sell their cotton con-
tracts TO a prominent cotton house for
II cents. This would net them $27. 10
per ton for fertilizers which sold last
year below $50.
Thus large part of the cotton crop
of this section has been bought with
fertilizers at a boom price and sold for
cash against the market.
The question naturally arises, how
can the cotton houses afford to buy
next falls crop?
Tie answer is that they can sell il
as they buy It, ahead of time, and they
do so.
The speculative market is such that
fall cotton can be sold in New York at
a fraction over cents, and when q
cotton firm buys cotton for actual de-
livery next fall, it 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
handling of so much cotton, on every
bale of which they make the ordinary
profits Of the business.
In other words, they are securing
business ahead of time and ahead Of
their competitors.
Other motives have been attributed
to the cotton men. 1t has been sug
gested that they wish to handle big
crop because their profits figure at 81
much q bale, AID knowing the effec
of such IN offC. on the acreage, are
publishing it broadcast in the plant
ing season.
Whether the have any such mOtiv,
or not, there eau be no doubt that tn,
offer of u to cents for the fall crOl
will induce the farmers to plant yer!
heavily.
Tfe trouble about it, so far as The
farmers are concerned, is that it vii
induce many to plant beyond thei
means who will not be careful to max,
themselves safe in doing so. The pub
LEGATION Of these advance, 5tfers TO
next falls crop will affect the action 0
hundreds of thousands Of planters
who will he i'll no wise protected.
NcUIIIIN ENTERS RACE,