The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-05-05

cents. When the price advanced to above
ten cents. - We awe all along felt con
hdent that II would 20. conditions sur
rounding tho market changed.
To begin with. the PRINCIPAL feature
was the small American stocks. As long
as cotton remained under ten cents stocks
decreased rapidly as compared with pre-
V1cus years. but now that the price has
advanced TO a point tina checks bying
IRON every direction. we notice that the
Tlsurea are changing to the bear side rap
idly. for instance we would point out
That during the week just ended stocks
At United States ports and interior towns
increased 1000 bales. while during the
same week 4 year ago. there was a de-
crease Of 1900 in American stocks: il
other words. there has been an increase
this week OF 5000 bales as ompara
with last year. in the available American
supplies.
Splnners and exporters refuse TO follow
the advance. ana as much of the cotton
now in America IS OF very low grade. il
VIII find its way to New York for deliv-
cry on contracts, just as large quantities
OF low grade cotton does every summer.
This stuff is not desirable for spinning
purposes, and is used as a 4ammer over
the heads Of the bulls N the future mar
kets on August contracts every year. Of
course May and July cotton are manipu-
lated by strong people. but they will not
attempt such tactics in August contracts.
because all the large failures in the last
twenty years in the cotton trade have re-
suited from an attempt to carry manipu-
latIon into August. Moreover, spinners
always find a way to get over the month
OF August without buying except very
sparinSly, as they naturally do not want
the low stuff and prefer waiting for the
new crop.
We feel that August contracts around
present prices car be sold with absolute
safety for very handsome profits.
AS to the new crop, the season is back
ward and the discounts on the fall and
winter options are very excessive. There
IS no reason why one should sell Deem
Der cotton at $50 when August can be
sold at 80, and August is not any more
liable to manipulation than December,
therefore W. would advise short sales in
the August option rather than in the new
crop, although good weather throughout
May and June would probably carry De
cember down to eight cents; meanwhile,
however, August would undoubtedly de.
cline a full leo points.
Those of our friends who prefer not
taking the usual speculative risk can
therefore sell August and buy December
lat the same time on one margin with prac-
tically a certainty Of making from forty
to eighty points profit, with the least pos
sible risk.
The acreage this year is probably the
4argeSt ever planted, and trade is not
nearly so good as it was a year ago, al
though spot cotton is one per cent pei
pound higher than a year ago.
On April 30th last year, cotton started
to decline and August contracts wen
from $40 to SOB with but small reactions
meanwhile December declined only abour
fifty points. The same will apply tc
nearly every season within the past ter
years.
If you are interested in cotton, stocks
or grain, and care to let us know youl
position, we will do our best to give yol
the proper advice.
TARRANT e KING.
68 Broad Street.