The Providence news. (Providence [R.I.]) 1891-1906, 1903-12-30
LIVELY Time ON
COTTON 'CHANGE
Break In Prices on Heavy
Transactions Yesterday.
D. J. SUlLY SELLS HEAVILY.
Hundreds Of Small Traders Wiped Out and
Even Big Houses Were Uneasy During
Exciting Period.

New York, Dec. so.-A collapse in cot
ton prices came yesterday afternoon.
The dealings had been comparatively
tame in the morning. but evidence OF the
elimination OF the short interest which
had been absolutely scared out I'm the
recent Wild upward price rushes was
given soon after noon, when some
iquidation started the market crumbling
The selling developed the fact that the
market WAS honeycombed with stop loss
orders and that support which In ordi-
nary times would come from covering
by shorts was not there. Within few
minutes prices broke 10 points or 81 a
bale The entire list OF future monthly
deliveries was again carried under the
l4-cent level. At the lowest prices
touched the decline OF rhe leading de-
Hveries ives 81 a bale.
In the final dealings on the exchange
there was a partial recovery. support
bcing given by the bull leaders. The
May delivery. which had opened at Nls
cents pound and had sold as high as
142e early in the day, broke TO 1916 and
closed at 1880 The July delivery opened
at 14l5. sold as high as l427. broke to
1880 and closed at 1879
II was the widest day OF trading in
the cotton market this season. An ex-
ample OF the decentralization was afford
ed in the execution by prominent
commission brokerage house OF an order
received over a Southern wire for the
purchase OF several thousand bales OF
May cotton at 1880 This order was
filled at 13.4s cents.
CLERKS LOSE SAVINGS.
The advances and declines we're so rapid
and so violent that traders nearly lost
their senses. The noise around the pit
was deafening.
Orders TO sell came In punches and be
fore a sale could be recorded 10 TO ~
points fluctuation often occurred Hun
dreds OF small margin traders were wiped
out I'm a few minutes. Big houses were
uneasy. and little houses were scared.
II was charged that the pools" at Beir-
ut. Cairo and Alexandria. with the bull
leaders here. had planned this break, but
the subsequent advances simply mystihed
operators generally.
Daniel j. Sully was reported 10 have
sold 1000 bales yesterday and his brok-
ers were active sellers today. Today's ag-
gregate transactions probably will make
record figures.
Since the upward movement In cotton
began many thousands OF young clerks
and other employees have deposited their
savings with brokers In order TO get rich
quickly. Mo; ~ has been drawn from
savings banks by many TO put into cot
ton and the speculative mania among
employees seems to have been greater In
the cotton market than IL was in the
stock market a year ago. This. too, In
face OF the fact that the heavy declines
in stocks have ruined many men and
many houses.
All sorts OF stories started about causes
for the big market smash. A favorite the
ory OF the bull Spectators was that II
had represented merely a great scoop
engineered by the bull leaders themselves,
who wished to shake out the "trailors."
II was estimated in one quarter that
probably throughout the country 5000
small spectators, who had been pyramid
ing on limited margins. had been wiped
out In the collapse OF prices
Another story was that powerful bear
party had been formed over night and
that II was because OF their vigorous at
tack upon the market az an opportune
time that prices had gone TO smash
The price of spot cotton IN the local
market was marked down 20 points 10
t7oc.