The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-03-08
COTTON TOOK A BIG TUMBLE.
The Speculative Market Suffered Severe
Decline Yesterday.
May Contracts in New York Sold Fifty Points Below
the Highest Price Recorded Tuesday Morn
ing-Spot Prices Lower.

In 1870, oSAo In lsIS. sac IN 1913. o-loc u
1892. 8 13-16c in 1895. II VIII thus be soci
that this seasons pepdulation compare
with any previous season for tina past TWEEN
| ty-fye years. has only been once exceeded
and then only by about 20 points In mos
previous cases the extremes have resulted
from the secondary effect or at sntlclDatet
damage TO n succeeding CROP. In no case ha
| the readiustment OF the relation between tn
demand and supply for any one crop led Il
such an extrema fluctuation as We have hat
this year as result OF tho shortage Of TIL
crop OF 1899 and 1900.
! In our opinion the advance In the marke
has been exaggerated greatly because OF Ia,
bad distribution of this crop Mr.. Neilli
prediction Of 100000 bales made enrly il
tho season led Europe to believe that our sup
oliea could be secured at moderate prices
and from nearly the commencement OF the
wear until a few weeks ago foreign consum.
ers insisted upon maintaining this position
! The result was very small stock In Liver
pool and n very large short interest in the
shape Of contracts or uncovered require
ments OF spinners. During the past week,
however. Europe has recognized the porllous-
ness Of her position and has bought per
sstentlv and insistently until the position is
almost reversed Bankers report to US that
The offering OF bills against cotton exports
within tho past ten davs has increased very
LARGELY and demand exchange has fallen from
81 S75s ia N.AN 10 concurrence. Imports OF
gold IN The near future seem rot improbable
Confident authorities estimate that tho
amount ~ exchange so sold within the past
| ten DAYS Is not far from $4,000 non, which Al
present prices for cotton would represent in
exnort shipment nearly 10000 bales
our cable advices indicate that hand in
hand with this buvng on the mart of con-
sumers there has deyoloncd m enormous
speculation in cotton futures. In which many
sonners have participated, and We are led 10
believe that the result is very DANGEROUS
speculative nosiuon in Eurone,
Meantime tho New York market has broken
sharply. having declined from the ton price
far August contracts some Sc noints Con.
sorvauee holders Of cotton during the past
two davs have marketed a very large nor
ton OF their holdings. These sales have for
tho most mart pnssed either 10 new fpecua-
tive BUYERS whose Judgment Is not SO much
to be relied upon or have met the wants OF
shorts. In either case the demand thus sun
piled technically considered. liz an element
of weakness rather than Of strength. A abort
interest on an advancing market Is admitted
~ explosive In the direction Of higher prices
until 1t Is covered long interest created at
high prices will be found to be held bv very
nervous BUYERS whose entire hone OF profit
rests In the expectation that the market will
reart to tho previous high level and who.
whom It falls TO do So will be spirtless self
ers Those who have bought cotton upon the
reiterated prediction that il would go to
6 hence In Liverpool and 10 cents in New
York will II they recall past history. nroba-
hy find that such predictions are ALWAYS
current al tho ton. II the ability TO recoE-
nlzo the ton Of any speculative market were
universal that ton would never be reached.
The whole machinery Of snecuiution is de-
viscd 10 anticipate the 'rtura and In our
ouinion in both Europe and America it has
ahurdantlv discounted it already hy as stated
at the commencement OF this circular. a uen-
dulatioa IN urlce which has never been
eauaied 90 snv single crop, and has only
once been exceeded under any conditions "a
the past TWENTY-FIVE wears For these roa-
sons W. continue TO believe that purchases
OF cotton at present prices are unwiso, that
saloa will probably show profit and that
those who own tho article. either specula-
lively or MS consumers. will consult their
own best interests bv tho accordance of cur
rent urccs Price. Mccormick q Co.