The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-01-29
SHORTS SQUEEZED
COTToN'S PHENOMENAL JUMP OF
235 POINTS.
LONGS HAD THE CALL.
FEW sAVANNAHIANs CAUGHT AND
SOME COME OUT AHEAD.

FIFTY POINTS ''At Bop - Inc
Squeeze on New York-Savaunah
Operators on the Mnrket-The
Jump a Record Breaker i'm OPP
tiOnS.
All speculative flights in the cotton fu-
lures market were ecipsed We te day by
one of the most phenomenal jumps in the
January option known to the trade. Dur
ing most of the day the whole market
seemed to be in the hanis of manipuia-
tors. who had taken it from the tr de an
its legitimate channel for the purpose of
battle Of dollars between the longs d
shorts of January coton. That many
shorts got shot and shell enough to force
them to surrender appears from the price
movement after the hottest OF the fight,
but It is possible a few stubborn stray
glers may be fourd against whom it will
be necessary to apply more hickory
January touched its highest point
about Il O'Clock, when the price reached
II 75c after a continued upward movement
of from five to fifty points "at pop" as
one observer put it. This high p int rep
resented a rise of 255 points from Satur-
days closing price, which was 10000 for
January 1t also meant to the shorts a
loss of 81 $50 on each 100 bales they d
contracted to deliver, ard which amount
they were bound to put up or secure in
accordance w tn the rules Of the ex-
change governing future transactions.
Carrying out the calculation it will b.
seen that shorts of 1000 bales needed
$125O0 to make good and so on
until an adjustment was effected
The only method of adjustment was to
deliver the staple or continue shipping
these differences, and with no ho~e OF
getting cotton to the etrc polls wi, hin
the next two days. the time required
the delivery of certifcated cotton, m ny
shorts adopted the policy Of setting and
getting in out Of the rain. A successful
squeeze discounts stuhbornness.
Those not on the inside, which include
practically all the cotton world except
the shorts, seemed to enjoy the perform
ance as they would pyrotechuic display.
AS January assembled in it's meteoric fight
it was fguratively likened to a skyrock t.
with the final upward bound of fifty points
between sales representing the last illumi-
mating effusion.
At the Cotton Exchange great interest
MdS uidiiliESltO III ltle movement. Report
were received at regular intervals, and
while the movement was even a revela-
tion to the Oldest members, the fact that
the New York markets has recently show
such ease I'm breaking all parity between
the spot and speculative markets made
the surprise less than it would otherwise
have been.
highest at y TO- its lowest at 1890 and
closed at 11.05. While other months re-
sponded some it was clear that the
squeeze was the feature, and that they
were not to be materially affected by
IL.
Whether local opera tors were affected
by the rise is not known but it is not
understood that any serious losses were
sustained. Rumors were current that one
man took a flyer" on January around
10.35 and took in profits of about $1,000.
Such gyrations as the market was put
through are known beforehand only to
the insiders, who have arranged for the
complete control of the product for the
few days necessary to carry out their
plans. In this case the stock in New
York was control led and il was known
beyond all probability of doubt that the
shorts could not escape by getting cot on
from any source in time for delivery.
There were rumors that the manipula-
tors had so cleverly fixed things that
when efforts were made to get Gotten
from a nearby port a barrier put there to
prevent such a move, was encountered,
showing the strategic measures adopted
10 carry the day.
Mr.. j. p. Williams, vice president of
the Savannah Cotton Exchange. said the
rise creates a disparity between the spot
and future markets that renders New
York useless a s market for the trans
action of legitimate business. The laws
- i he
adjustment of values in that market. he
said, and for this reason the trade are
al sea about the future course of prices
When the market ceases to respond tc
the natural conditions governing trade
there Is no way for the operator who stud
les conditions to form correct idea about
what prices will be. He does not be-
lieve the present wild movement will con-
tribute favorably to the opinion the busi-
ness interests are forming of the New
York market.
MIR. Gardner 2. Dickinson said the trade
had Witnessed an extreme advance II
January futures of 255 points, or SO Z
per bale without adding anything to the
value of cotton on the farm, In the port
or at the mil. Shippers. factors, brokers
exporters. importers and spinners are
standing aside while spectators and ma
nipulaio turn the floor of he New YORK
Cotton Exchange into crazy gymnasium
ut seems that New York futures have
not only outived their days of helpful
ness to those engaged In marketing the
cotton crop" said Mr.. Dickinson. "but
they have become a dra wback. a positive
menace to producer middeman and con
sumner alike. When the institution was at
tackled by congressional legis alton, SONS
years ago. II was unanimously defended
by cotton merchants from one end of the
country to the other, many Of them claim
ing the crop could not be marketed with
out the aid of futures. Since then condi
lions have changed, and now an anti-op
ton bill would probably find little opnosi
tion outside of the favored four hun
dred' members of the New York Cottor
Exchange. 1t has been years since con
sumers could buy distant deliveries witt
any hone of receiving anything suited tC
their spindes, and who is there who wi,
use March at 9.35c or May at e29c in New
York as a hedge against middling cost
ing e44c in Savannah. The interior mer
chant in small degree bases his price or
the current month, which has to day helC
an advance of nearly 100 points. TIL,
spinner in a small degree bases his price
on the month in which his cotton vii
reach him, which month has to-day CLOSED
rather lower than higher and now aftei
an advance Of 1ssc in spots and 100 point!
in January futures we find it difficult e
obtain satisfactory prices for spot or ar
rivals II New York merchants are sincere
cd IN drs IN ba4