The Washington times., 1903-07-05
REVIEW OF THE WEEK
IN COTTON MARKET

NEW YORK, July 3.-The feature of
the week has been the unfolding OF the
policy of the New Orleans clique with
regard to it's position on the market and
it's attitude particularly on the July and
August options. The announcements
made last week that it was long" Of
over 80, coo bales of July contracts and
had made arrangements with at least
four of the largest commission houses
in the trade here to take in this amount
of cotton, representing ali the total
stocks Of contract grade here, was made
good by their brokers promptly stopping
every notice" of delivery that was
issued. On the first notice day they
took in all Of the $500 bales that were
rendered, and since then they have taken
care OF $4,000 additional.
This makes a total Of over 10000
bales which they have received and paid
for thus far on the basis Of 13 cents
per pound for middling. or equivalent to
$50 per bale. OF to a total present mar
ket valuation Of $7,15O, 900. They are
prepared and expect to receive the bal
ance OF the cotton their contracts call
for before the option expires on July 81.
| This would give them a total of 10000
bales in this market and about $4,000
bales at New Orleans out Of the total
stocks there now Of 10000 bales. or a
total Of 200 900 bales out Of the present
/ total visible supply Of cotton now in
this country OF about 900. 900 bales. The
bulk OF this cotton was bought at prices
I N~1g Z ha
present prices Of the July option.
The curtailment OF production has pro-
! gressed further during the week BY the
/ shutting down of eleven large mills al
FAN River. and today the Manchester
| and Lancashire agreement TO close theil
mills every Friday afternoon until tht
/ following Tuesday until October 1 zoe;
into effect and reports from the dry
goods districts show that practically nC
orders for future business are beint
placed for standard goods pending de-
velopments in the probable outcome o
the corner" and the new crop situa-
n tion and outlook as the price Of manu-
/ factured goods cannot be advanced 70
price anywhere equivalent 10 the pric'
Of raw cotton.
Such a situation as this is Glmos
without precedent in the history OF tht
trade with the price Of cotton highe
than at any time IN twenty years. Man,
have been expecting a crash to occu
at any moment. But up TO date it +
not yet In sight and the bull cliqu
seems as strongly intrenched and as abl
10 maintain their position as they hav
been at any time during the past month
The solution Of the problem as regard
the spot-cotton situation seems to res
largely upon the question whether spin
ners will be compelled to buy.
AS for the speculative position 4
futures Of the next crop delivery. tha
resolves itself more on a gamble o
the weather conditions. as Affecting th
development OF the growing crop, especi
ally during this month and August an
September. Those are the crucia
months. and the fate Of the crop
determined solely by the character q
the weather. II the weather condition
prove favorable even on the pregen
| situation and outlook, there would be
probability Of the South yet prCducln
q crop Of over 1000 900 bales and wit
such a prospect as that unfolding IA
weight of the early receipts woul
break down prices TO a more reasonabl
valuation.