The Providence news. (Providence [R.I.]) 1891-1906, 1903-09-04
TIP CAUSED
BIG SLUMP
IN COTTON.
Washington Crop Report Caused
Rush In Prices Which Almost
Dom0raI|zod Market.

New York Sept 4.-Tips on cotton are
about as plentiful and. as q rule, about
as valueless as tips on stocks. but a tip
from Washington yesterday morning gave
traders on the Cotton exchange a most
exciting and TO many OF them a very un-
comfortable hour.
An the forenoon the members had
been waiting impatiently for the month
ly government crop report, ana all
sorts OF estimates were made as 10
the averages II would give. Early in the
day and before any definite news was
received. an apparently authenticated
report reached the floor that the av-
erage condition would be so per cent,
against 1917 for last month and 64 per
cent. a year ago,
This report gained credence. and It's
effects soon began 10 be felt Such n
figure naturally suggested In many minds
a record breaking crop. and traders made
the most OF IL al once selling the market
They argued that no bull pool, how
ever strong and aggressive. could con-
tinue operations successfully against a
crop estimate which many regarded as
an assurance OF a IL. 900 000-bale crop
Many operators therefore. who mad
been following the bull leaders became
nervous over the situation. sharr
break OF 10 points in September In the
London market added 20 their fears. as
there were indicat tions that interest over
there were endeavoring 10 unload.
BULLS TO RESCUE.
shortly after II o'clock the selling pres
sure became so acute that the excite
ment for an hour was intense. IL seemed
to everybody that bull support had for
the time being been withdrawn, and as the
selling pressure increased, and number
OF stop-loss orders reached the market.
prices declined violently 10 a level of
about 40 points on the September option
and 20 points on october.
Conditions then prevailing merged on
demoraliza ton and apparently forced the
bull leaders TO protect the market from
further violent breaks. For while IL
seemed that everybody had orders to sell.
and the excitement IN the pit and the
deafening noise of the bidders evidently
pleased the visitors. who packed the gal
leries and approaches TO the floor.
1t was at this point that Mr.. Brown,
the leader OF the New orleans clique.
appeared on the scene, and, to the sur
prise OF some and TO the relief Of others.
began an aggressive bidding for sep
tember option, and prices rallied from the
low level Is points for that month and
ten points for the rest~s< the list Sully
also supported the market.
When at u o clock the crop report came
in and showed a condition of 81 2-lo-
better than the most sanguine expected
selling was again resumed, and enor'
nous transactions were recorded. Prices
again went down. September declined
10 lll2. against It's opening price OF 11.54
October declined TO 1920. against ~; De-
cember 10 993, against 1912 and January
to ss9. against 1910.
These declines again forced support
from the hull leaders, and at the same
time induced general profit taking by
the shorts and rebuying by traders and
commission houses. but considerable ner-
vousness was apparent. and II was pre-
dlcted by some operators that today's de-
velopments would have marked effect
on the Liverpool markets tomorrow.