New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-09-11
COTTON PRICES SOAR.
BEARS IN A PANIC. OVERWHELMED BY
THE GREAT SOUTHERN STORM.


Just as the great storm swept everything be-
fore II in Texas so IL created wreck and havoc
in bear circles in all the cotton markets Of the
world The New-York Cotton Exchange was
the scene Of Unprecedented excitement. Panicky
conditions prevailed from opening until the
close. and an actual panic was only averted be-
cause the market for the current month had
not been so active in consequence Of the Ian
cashire spinners' determination to close down
their mills rather than buy American cotton at
the prices which have recently prevailed. I'm
bued with the fear that the destruction Of the
crops in the best cotton growing fields Of Texas
had been complete. ad that the scant avail
able supply Of cotton would be de-
creased to the extent of from 100000 TO
100000 bales. consumers rushed madly to
buy. Every broker had buying orders, and rep
resentauves of Southern and foreign interests
frantically endeavored to secure large blocks of
cotton. As a result, the future jumped to prices
which had not been reached since 1890, and prior
to that year since 1888. October sold up TO 10
cents. an advance of 81 points since the previous
Saturday. and of 80 points in the last ten days.
The market was well styled dangerous the
swing Of pendulations being violent and of wide
scope. Fortunes were and lost within ten
minutes time at the start
No effort was made during the morning TO
harmonic the market though everything IA
eored the bulls, some Of whom gathered in
profits Of 125 and 80 points on cotton pur-
chased at the beginning Of last week. Shorts
were paralyzed and feebly purchased TO stop
losses which meant almost ruin. while the pro-
fessional operators and the public reaped a rich
harvest. Europe a tremendous loser, hav
ing been short on the market, in the expecta-
ton Of big crops, since August l. The frenzied
excitement caused such an uproar on the floor
Of the Exchange as could be heard block away.
All day the gallery packed with spectators,
who were attracted to the building by the hub
bub which prevailed The advance in price TO
10 cents is equal TO So a bale. and what this
to the cotton manufacturers and grow
ers. but in diverse directions, can be readily I'M
derstood when It is recalled that a couple Of
years ago the cotton farmer content If he
could sell his product for five cents pound
OPENING SCENES ON THE EXCHANGE.
Before the market opened yesterday morning
brokers 1ocked to the pit discussing the stua-
ton among themselves Large numbers Of them
filed with anxiety and trepidation be-
cause looking to a break this week, they he'd
sold short on Saturday. When the gong sound
ed the pit was crowded with operators. With
deafening roar they wildly jumped to buy The
first sale the September option, which
closed on Saturday at $50 The opening bids
ranged around $50. and in quick succession
they rose until the 10-cent point was
reached. Then the bull operators began to
gather in the large profits which have ac-
crued to them since the upward movement be-
gan ten days ago and a sudden tumble Of
from IS 10 % points occurred. But the market
was wonderfully recuperative, and when late
cables from Europe were received it rebounded
i 10 II points fresh wave Of buying. AL
though brokers hurriedly sent out demands for
additional margins. the fluctuations came so
hat .1tar
cause the margins had been exhausted. During
the first hour the sales bulletin board was not
sufficiently large to chronicle the transactions so
numerous were they.
The Liverpool market, which is five hours
ahead Of the New-York Exchange bore the brunt
Of the scare. Gables reported the most feverish
market there that has been witnessed in many
years. Spot cotton at Liverpool advanced from
6izd for middng to 7Ad. equivalent to /
cent, while futures advanced for the September
to May deliveries. The final Liverpool cables
were considerably below the highest figures but
indicated net gain Of from IA to 20 points so
that the New York market was but slightly IN
iuenced by them.
The aggregate transactions on the local Ex-
change surpassed the high record of the wear
and not al any time during the dav was there
a perceptible dirninution of the animation that
marked the opening. About noon there was a
little quieting down, but the price movement
ing and selling. The bulls, however were for
the most part in the ascendant and prices aver
aged from i to points below the highest quo
tatons Of the morning. Late in the afternoon
buying stimulated by Southern and invest
ment orders and additional short covering I'M
til shortly before the close the topmost prices
of the day were reached. September selling up to
1880 October TO 10 10 and January to 973. The
market closed feverish, with both longs and
shorts displaying nervousness.
TWO FAILURES ANNOUNCED.
Despite the extreme panicky conditions which
prevailed only two failures were announced dur
ing the day and these were not of such a ma
ture as to produce any material effect on the
market. One Of the failures was that of Cav
L. Schiller and the other that Of his father. l..
O. Schiller. 1t is reported that the failure Of the
elder Schiller. who lives at the Hotel Neither
lands. is due to his efforts help his SON. who
ii is said, has been trading somewhat heavily
The Schiffers were known as room traders In
cotton, and they were regarded as conserya-
tive operators, their liza bties, II is expected will
not be heavy. Previous to engaging in the cot
ton trade they were in the fruit business Mr.
Schiller, said that his failure was only a
temporary matter. He had been caught on the
short side, he explained. He had tried 10 get
further margins when the furry came in
order TO respond 10 trade margin calls but his
customers had failed respond. At the offices
OF the Schifers ii was said later in the day
that no statement Of liabilities could be prepa red
for few days The total amount involved il
IS understood, will not be more than about
$4,000.
DAMAGE TO COTTON CROP.