New-York tribune., 1901-01-29
COTTON SCARS ON WINGS.
SHARPEST SQUEEZE" FOR SHORTS
SEEN LOCALLY IN MANY YEARS.
JANUARY OPTION ADVANCES 245 POINTS IN
AN HOUR-LARGE LOTS SENT TO THE
CITY BY EXPRESS.

The local cotton market yesterday witnessed
phenomenal advance in the price of the Janu-
airy option, due to the operation of corner. -.
The January opened at 1870 cents 10 points
above Saturdays close, and for while there
were no indications of the trouble soon 20 de-
velop. Then some traders sought to cover. but
there was practically cotton to be had at
that figure. The price instantly advanced. soar
ing upward points at time until at the
close of the first half hour it IL cents a
pound Then the jumps became wider, the
next quotation after II cents being 11.2O The
shorts had to have cotton, but their urgent de-
mand was not satisfied in any degree until the
12-ccnt level was reached. At that price there
was some selling by Fernie, Wilson & Co. a
local firm with New-Orleans and Liverpool con-
nections who are generally credited with en-
gneering the corner" and they sold again at
80 and at 1910. which figure was reached at
IL o'clock. an advance of 245 points for the
hour. At 12.15 profit taking began, which
caused a sheer break to l. cents. though this
followed by a fresh rise to 125o on excited
covering. on the way down, S. NJ. Weld & Co.
sold 500 bales at 12.1J
The air was filled with rumors of cotton to be
delivered from Fall River, and shipments are
known to have been made yesterday morning
by express, guaranteed to be here in time for
January delivery, which must be made by Thurs
uay- ABOUT tnlrtS thousand DaleS OF JdIudlS
changed hands before noon. 1t does not follow
that long interest liquidated to this amount
the clique bought as we'll sold. There was
a sympathetic rise in February and March, the
former selling as high as $50 and the latter at
9.44, while the excitement N January the
greatest; but the general list made reluctant
advance Of only TO points, and ruled dull
The trading yesterday chiefly in 100 bale
and POO bale lots
The late Liverpool cables proved more friendly
while late reports from the South told OF decid-
edly frmer spot markets. The later options
slowly rallied on this news. and passed
above the closing level of Saturday. Southern.
Wall Street and light wire house buying APP
peared and helped to give the market gener-
ally firm undertone. Speculation as a whole
was conservative. the January manipulation
holding the attention of all branches of the
trade During the afternoon the market ruled
quiet, with January closing at l1.O1 net ad-
vance OF 81 points for the day, and the other
months l point higher TO 2 points lower In
accordance with the advance in January. spot
cotton sold at l? cents-an advance of rs
cents for the day.
The squeeze" which was the sharpest known
the local Cotton Exchange for many years
was not entirely unexpected large part of
the short interest in the January future was
covered last week. The shorts who rushed TO
cover yesterday were mainly New England
Chicago and Southern men, II is understood.
who believed that the corner could not -
successfully worked
The facilities Of the inspection bureau Of the
Exchange were sorely taxed by the corner"
together with the heavy rush Of cotton 10 this
city from Southern points to meet January de-
livery agreements. II was necessary for Super
irtendent King to issue notice to members
requesting that he be provided with all sam
piers and examiners whose services were then
dlsengaged. Another very unusual feature was
the sending of large lots of cotton TO this city
by express. the high premiums which prevail
making such shipments profitable. in spite Of
the marked difference between express and
freight rates.