The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-12-29
A REVIEW FROM GOTHAM
COTTON HELD UP VERY WELL CON-
SlDERING HOLIDAY SEASON..
Doubt as to Correctness Of Government
Estimate Is Rising Among Some OPP
erators--Others Not Changed.
Especial to The Post0

New York December 2s.-The cotton
market has dedCd the prophets this week
and held up with unexpected firmness
throughout period when the news was
certainly of a bearish character. In the
first place. n reaction was the logical thing
TO happen after so great an advance MS we
had during the last month and in the face
Of high receipts. Last week there was a
gradual decline in the amount of cotton
received Mt ports, and 1t regan % look as
il the figures for the spot goods which were
predicted as a result Of the governments
report were to he realized. However Gh
unusual thing happened, in that sudd6Gfy
they were again increased and the number
Of bales received at this and other sea-
board points were so large that they caused
a feeling of suspicion to appear in the mar.
ket as regards the correctness of the esti-
mate which the government has put forth.
How these receipts can keep up at the pres
ent very high figures without the market
declining is more or less of a mystery. An
expert on the exchange has really said that
they would prefer to see an easing on In
the price of the futures. fearing that IL TINS
did not occur sharp break might take
place which would be more or less serious
10 the market as whole. The first OF the
week, however, gave renewed strength TO
the idea that a very extensive buying
power exists In the market and that peo-
pie are willing to procure cotton at-any
figure, fearing that the longer they wait the
more they will have to pay for 1t. Through
ont the days preceding Christmas, when
money should have been taken from the
market and accounts lessencd this purchas-
ing of the futures continued, and IL was not
until an hour or two before the gong sound
ed for the double holiday that any reaction
put in an appearance, Even then the de,
cline was OF small consequence, and ut
oNn uoinf down orders caught for
renewed purchases
The question of doubling the correctness
of the governments report of December :
is being debated on the exchange and
among cotton men generally. But 1t Is fair
to say that those who are candid about IL
and whose opinions are not influenced ny
either their desires or their position In the
market, fail to see any legitimate reason for
throwing doubt upon what the government
has said. High receipts. of course upon
their face should mean Il large crop, but
then 1t must be taken into consideration
that various influences often bring cotton
10 market Mt one time aud prevent It's APP
pear6nce at another. 1t is known that the
farmers had considerable cotton held over
and that little exists In the warehouses or
is held as stock by the spinners. Now, II
is natural that as the January option be-
comes due. being ono of particularly actly
ity rs such, that instead of selling out con
tracts the spinners have taken them up and
have asked for delivery of the. goods II
is limited that a great Philadelphia firm had
bought cotton from the farmers In very
large quantities and had sold il when Jan
uary was at its high prices. These they
have made arrangements to deliver, and
they are prepared to have the ones TO whom
they have sold call upon them In the early,
lf not the very first part of the month.
This Is why cotton is being rushed to post,
and IL must he remembered that every bale
that comes out Of the South can not appear
n second time. If large amounts are brought
forward now the stringency AZ q later date
is only to be looked for This is reason
able conclusion TO draw, and those who
held cotton continue 10 do So Ii is re-
markahle, too, among the general line of
commissioners how much switching has
been done from january TO the later
months buying bale for bale of that which
they sold, even where their holders had
handsome profit accrued to them In their
January contracts Evidently the small
dealer is not prepared 10 get out OF the
market and when he has to give up the cot
ton which he holds he simply buys the
same amount of later one.
The position OF sugust is rather peculiar
In this market, ranging as It does below
July. when IL is almost inevitable that later
on the real activity will be in the later
month and that II Is almost bound to catch
I'D in price with the one that proceeds 1t.
A fair speculation Is to buy August and
walt for II to be on a parity, II not higher.
than the option which proceeds II. II
been calculated, II will hardly be relieved
in August and II the market is worked up
on such possible event. the highest points
are likely To be reached when July IL spot
cotton and can not be traded in by those
who speculate In futures, but when August
Is still capable OF being held.
II Is fair TO look for the market To react,
but perhaps II is unwlse to count much
upon Il doing So considering the strength
II has shown In the last few days.