The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-12-23
!; 90 ON FL|RTS
WITH THE BEAF
They Coax But She Fl
vors the Bulls.
OVER THIRTEEN AGAIl
"And the Farmer Stands To-day a
the Dictator OF the Price OF One
of the Worlds Greatest Com
modities," Is Conclusion
Reached.

Cotton was again in a lrtatious mood
yesterday and after having smiled on the
bears the day before looked with favor
on the bulls
And it was a great favor that was
shown, for from the top notch price of
1878 cents the day before the local mark
ct advanced to 1874 cents a pound. 1t
was an advance that was appreciated by
| the men who had cotton to sell.
There were sold here yesterday 2O9
bales of cotton at from 1919 to 1874 cents
pound with the average at 13 cents
pound A year ago the sales amounted
to thirtr-nin bales at from Sls to SA
cents pound.
The advance on the future market was
in the neighborhood of so points and on
the New York market spot cotton sold
as high as 1880. The June futures reach
ed Il cents, indicating that the wind was
blowing for sky high prices.
Cotton is being rushed Or the market
as never before, the high prices draining
it out from all storage houses. After this
rush and after the close of the holidays,
there is expected to be such a falling off
| in the receipts that there will be another
advance in prices when that condition is
reached. Much higher prices are predict
ed after the holidays, while there may be
some advance in the few days yet remain
ing before these.
Here is letter Just sent out by ]. H
Parker & Company OF New York. 1t is
one that viii prove interesting reading,
every line of it, and hence it is given in
! full. The letter says:
with all options from March to July
selling above 13 points, the market pre-
seated startling contrast to the figures
below 5 cents, which prevailed only five
short years ago, but the change in prices
| is even less radical than the wonderful
revolution which has taken place through
| out the cotton country itself From a
debtor class the farming population of the
South has become q creditor class a com
munity of small capitalists. With the
! change from poverty to aifluence. the
| typical independence and enterprise, for
| which our American nation is justly cele-
| brated, has come to the front in the
South. The owner of the cotton which
the whole world now anxiously seeks
was not slow to realize its value. and the
! farmer stands today as the dictator of
the price of one of the worlds greatest
commodities.
|
deceivng themselves with the delusion
that manipulation, pure and simple, by
! daring gambling clement (as they saw fit
to term it, was entirely responsible for
the prices which they insisted were en-
tirely too high and unjustifable I'M
taught by the sad experience of the past
year, they continued to place their faith
in the prophets Of big crops. not realizing
| that they were stalking their whole years
! prosperity, and possibly more, on the
single chance that these prophecies might
ccne true Like predictions failed during
| the East three seasons with disastrous re-
suits to the spinner, and it seems incredi-
| BILE that he would again put his head in
! the moose, but the facts are written too
plainly for doubt, and another situation
like that Of last year and the year before,
only very much worse, IS now confronting
! him.
"The most serious aspect of the pres
ent situation is the default by numbers OF
| sellers. on contracts for delivery of spot
cotton. The sellers who have laid down.
as the term goes, are not only located in
America, but also in Europe, and spinners
who bought from them finding that the
! cotton on which they reckoned is not
forthcoming, are forced TO buy at once
without regard to price to keep their
spindles going. Exporters Of standing and
responsibility, who bought cotton from
parties who have failed to deliver, are
now obliged to find the cotton elsewhere
to make their contracts good with spin
ners.
These two elements appearing in the
market at the same time with the ordin-
ary buying for mill account have created
a demand which even during a period OF
normal supply would be strong factor,
but coming as they do when the farmer
seems TO have made up his mind to stop
selling, unless at very much higher prices,
the effect is almost sensational
There still remains considerable
amount of cotton to be bought to fl
December shipments. Prices for actual
cotton for the past few days, throughout
the South, have jumped Ac. or more
daily, and at the moment, actual cotton
is relatively higher at the interior than
it IS at any of the future markets Here
in hes the real strength of the situation.
There can be no sounder foundation Tor
future values than the demand and firm
ness OF spots. Reduced to their essence
spots represents the substance and fu-
lures, but the shadow of the business IN
cotton, trade which involves the dlspo-
sition OF crop valued at nearly s0OO,Voo'-
900.