The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1903-01-11

IL on supply and demand, but the part
s.c, he the New York cotton exchange
"a ora important than for a great many
T AZ least twice during the season
rs .t.e initiative was taken by the New
n srocplators. In both instances, an
az 90 and a decline. the movement
NJ from this city, With other markets
~ inc at nrst slowly aud at length IN
< 4 vmnathy. While the center Of active
34sistlon. the New York exchange is not
La as so important as Liverpool, and,
as concerns actual cotton business,
III tsct secondary to New Orleans. But
I, rear savings aud doings Of metropon-
< lotton men received more recognition In
rade generally than similar activities
,,S,d or IN the South.
tn reason assigned for this prominence
ia General boom IN mauufa ctufiug III
n IL If this country and the great III
IA In exports of manufactured goo4s
'Ntbe least Of these is cotton IN New
tinni. where the bulk of liner grade
M are manufactured, 1nuls felt, the
" =, abundance of money IN circulation
4*tbe Increased demand for q class OF
IN NOT produced In large quantities dur
LINZ years OF financial depression. Mills
4 larger business, paid larger dividends
1ffound themselves able TO pay more Tor
r5srsw material. MIN owners discovered
Z. money was to be made from purchases
sore raw material than was actually
cSed. for the tendency OF cotton prices as
W az Of the price OF goods was TO ad-
IA This condition turned those Engaged
'antton manufacturing TO the New York
.ssnse. where speculation In futures
IA, I n.Ser cause at increased intarest In the
~ msrket here has been the changed
Mods az doing business. Few years
Ia large stock OF cotton was carried IN
,fehouses throughout the season Plant
ttin the South In communication with
- york snot dealers consigned sotton for
3hery here to be disposed of when prices
rrded a reasonable profit. But along
IN tho growth Of large corporations
lines of industry and Increased capital
He transaction Of business the seVeral
- dealers IN cotton went into the IN
IN ana bought their own cotton. In
m cases the more important splnners
u their own agents in the South, thus
nlusting the middle man. win the DIS
NJ arance Of the middleman, the midway
1rket In great measure has disappeared.
Non has Of late moved directly from
nations to the consumer and 10 no
1rer held In store for an indhenite period
n the dwindling Of stocks has been at
,6ed with a new development Ia the
E,ye market Not having large stock OF
y SIMPLY of contracts traded In daily on
Z honr OF the exchange, congestion mas
<nited II has become n comparatively
npIe matter for an individual or group
TO buy an all the contracts
sne month and plan for a corner. Those
II IN the cotton industry itself have there
u beep led 10 speculate in cotton for
4 gain 10 be obtained from a rise or fall
prices.
Il more fundamental explanation for the
tfessed attractiveness of cotton futures
IA speculstive commodity, and one that
blies 70 the worlds markets, Is the
znSe In the cotton position since the par
d failure of the crop of 1880 During the
d. OF declining prices and hard times
nerally, ending with the Mckinley cleo
d In 1896, cotton had deprecated in value
BIS with other commodities and securi-
i. Several cents a pound had been taken
Ia the market price OF this important
bic. Then, while industries we're feeling
impetus OF changed finances and
Hinged sentiment, the South raised two
cord crops In 1897 and In 1898. This
reproduction further depressed prices
Nj futures In the New York market sold
iow &C. or the lowest since the war Of
/ rebellion. so fertile seemed the soil
the rich Mississippi bottoms and the
u lands of Texas that the government APP
inted special commissions to devise S0me
ethods by which the evils of overpro-
etion could be remedied. With the low
ices, consumers had discovered new uses
4 which cotton could be put. AS was IN
table, with the cheapness OF the raw
aterid consumption increased. Thels
be the short crop of 1899, and in few
Dnths prices advanced several cents and
less than a year and half cotton was
Ping nearer 10 than cents. With the
dden change In the situation speculation
Creased many fold.
This condition continued in 1900 until,
fh the Galveston disaster in the fall of
Ut year, prices were whirled to 1874 cents
New York During the early part OF
p1 the dry goods business was not good
this country, the Chinese trouble abroad
hlnishod consumption and there was not
bortunlty for speculation. But the crop
1901 proved to be a moderate one, and
= fact was not fully appreciated until
& beginning Of 1902. At that time tu-
fes were selling ut about SA cents in
Is city. The month before the depart
INT Of agriculture had estimated the ye1%s
pductlon OF 100000 bales, and as, spin
rs had believed in n much larger crop
fy were unprepared for such showing.
this city a long interest OF several hun
ed thousand bales existed. Spinners. be
p 10 buy freely and speculation helped
buying, There were few sellers, owing
the hesvy movement of cotton In De
fnher and January. and absence Of cotton
sale left the advance a comparatively
hple matter The best Informed men IN
trade were confident OF n 1O,b0O,OOO
le crop, and at 81 cents and cents
prt interest was created. AS it after
Ard proved. this position was justified.
" European sptnners. helated in their
ying rushed into the market, and before
prts could cover prices advanced 10 about
#H II ~ AaNN. I'D
E revulsion Of feeling and the crash at
nding an overbought market and an ar
pdally high price. Within n few months
same options that sold at eco cents
Pre- selling at $40 and $50 cents.
AZ result Of the high prices in the
ring preparations for the planting Of the
w crop were on an extensive scale. The
'ndition % the Southern planter was bet
Z than FOR twenty-five years past. Three
ops marketed at most profitable prices
10 returned hundreds OF millions of dol
rs over the value Of any three previous
ops, and the bringing into the South for
s'rlbuton of something like $1,000, O00.
- IN that time wrought a most remark
PIE change. In addition to these enormous
operations, weather during the spring
Ecu exceptionally fine. The crop had
4 alt that promised to make a record yield.
7 GENERA seheral was the belief that the yield this
yos,,l would equal. II not exceed. the
q tdp ~ Of 1891 and 1895. that eSti-
49, OF 100000 and even 13,OOO,001
~ we're circulated. There VAS formed II
nj N interest, with New York IN the lead.
M n, W psiees declined from SIsc to about Tl2c.
~ S.tns the latter part Of July and early
eon ~ august drouth was reported over
isSssi...tsa oIe area OF the best east OF the
Y, sSS'ssippi river, with high temperatures