New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-30
BULL PANIC IN COTTON.
UILD DAY ON EXCHANGE.
Declines of Nearly 81 Bale for a
Timc-GaiRs TO7cdrd Close.

The setback so long expected in the local cot
ton market occurred yesterday afternoon. and
was as severe as IL was sudden. although half
Of the loss had been recovered by the close OF
the trading The bulls had for many days been
IN cornpIete control OF the market and had ad-
Nanced prices almost at Will; but by Monday
night il was apparent that practically the last
OF The shorts had been driven in. the result
being that when sonebody-one Of the prom
,nent bulls who was DESTROYS OF taking profits
Il was sai6-began selling heavily little after
noon yesterday there no important short
inseree; left 20 purchase the offerings for the
,,urpose Of covering, as had been the case on
previous days.
In the upward rush OF the market of the last
Jew weeks spectators. through cotton commits
sion houses, had been confidently "pyramiding !;
that is as fast as their speculations showed
profts they had changed these profits into mar
gins for further buying. The margins required
fv the commission houses were large as COM
pared with those called for IN normal market
ZINES. ara this WAS the salvation OF some cot
ton houses in yesterdays bull panic
The break IN prices developed the fact that
a great amount OF these speculative accounts in
the cotton market aggregating several hundred
thousand bales, were held subject TO stop loss
orders. the execution OF which precpitated the
crash which followed the recession caused by
the ATTEMPT 10 realize bull profits in the over
bought market.
The market had opened weak at an advance
Of / point TO decline Of II points. and with
Liverpool showing weakness as a result, II was
reported OF heavy American selling. the local
market declined still further during the hrst
few minutes, with January selling down TO
1865. March to 1898, May 10 IA and July TO
1903 on this decline there was exceptionally
heavy buying which appeared TO come from
nearly all sources, including scattered room
shorts New-Orleans and wire houses with
Southern and Western connections, so that the
market was soon rallied TO about Monday
nights prices
In the rest Of the forenoon the general Ten
6encv was downward, and around midday prices
showed a net loss of % TO p points. with the
market ruling apparently about steady at that
level. when suddenly there came an avalanche
of selling orders such as has been rarely W.T.
messed. Brokers rushed to the pit and fought Tor
places on the inner ring. The Cotton Exchange
room was so full OF noise every broker yen :
ing at the top Of his voice, and nghtlns TOT
chance 10 unload cotton. that from the galleries
ana the space outside the rail- il was one great
roar, and no one could get an idea OF what was
Usually. even in the noisy markets TO which
onlookers at the Cotton Exchange nave grown
accustomed. there IS some opportunity OF keep
ing track Of the market by watching closely
the quotation board the transactions are
ohalked down. But this was a panic. brokers
standing almost side by side were selling the
same options at widely differing prices and the
trades were in such enormous volume that II
was impossible TO record them. Within few
minutes March had broken to 1898, May tc
134S and July 10 1880. these figures repre-
senting net declines OF T6 10 a points or nearly
81 bale. In the crash scores and hundreds
OF scantily margined accounts were wiped out
But when affairs were at their worst and Il
looked as though bottom would never be
reached the New-Orleans bull party came tc
The rescue and. aided by the local bulls, put II
heavy buying orders under which prices rallied
as swiftly as they had fallen, gaining 40 point:
in a very few minutes. Thereafter the market
ruled extremely irregular, going first this way
then that, with sentiment very unsettled and
trading feverishly active. The closing was
steady. with prices net Al to 81 points lower
han Mondays last prices. The total sales were
estimated at 100000 bales