The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-02-03
DOWN IN SWIFT,
BREATHLESS RUSH
Six to Eight Dollars a Bale
TumbIes Off Cotton.
AND MADNESS REIGNS
The Sensational Decline Continues
Until it Spends Itself. Then Shorts
Begin to Cover. SuIIy Says
He'll Take Well
Earned Rest.
Earned Rest.
Ry ih4 Associated PresS.l

New Y.li:, Feb. 2.-SeIling am vio-
ness in tlc Cotton E.>ckange, the days
slump being even more sensational than
the recent advances which have steadily
sent cotton quotations upward, until yes
terday they reached the highest level
since 1875
Under the influence of a number of
causes, chief of which was the confirmed
report that Daniel J. Sully, the supposed
leader of the upward movement, was
about to take vacation, and enhanced
by the belief of many operators that its
elimination had been reached, quotations
for ali months collapsed to the extent Of
from So to IS per bale and utter demoral-
ization ruled in the pit. No failures
were reported, but the violent fluctuation.
represent losses of millions distributed
throughout the market. Transactions
during the day were enormous in the ag-
gregate, the days sales being estimated
at 100000 bales. The break was checked
finally by renewed bull support and a raj
ly followed. The close was about steady
The day opened with a sharp break III
circulated rumor of settlements by short
interests effected since yesterday. This
sent quotations down half cent per
pound but denial of the rumor brought
about a substantial recovery. Barely had
the market steadied after this movement
when the report OF Mr.. Sully's intention
to take a vacation became current and
prices again started down. 1t was inferred
i
of his interests and the abandonment of
his campaign, and when he was quoted
to the effect that he was about to take
a two weeks vacation, the downward
movement became a panic, selling orders
poured in upon the brokers and the mar
ket went TO pieces, quotations melting
away and 10 points at time. In fiji
teen minutes of this panic, with every
broker seller and none buyer, prices
fell vertically almost a cent pound, and
the May option in less than, an hour reg
istered decline of a cent and quarter
a pound, variation greater than would
have been effected in a week under nor
NAL conditions. Along with the liquida
tion of bull spectators there was some
selling for short account.
The sensational decline continued ap-
parently until it had spent itself. After
it had been going on for about an hour,
and fortunes had been wiped out, few
buying orders appeared and served to al
lay the storm of liquidation and short
selling. Then Shorts began to cover;
and there was a quick rally of from 20
to 75 points, but it had been terrible
hour.
The close was reasonably steady on the
active options at from 20 to 50 points
above the low points of the day. Only
once before in the history of the Cotton
Exchange have transactions for one day
exceeded those of today, when the two
million figures were reached.
Just before the decline began a report
was circulated that Daniel J. Sully had
cablcd his Liverpool correspondents that
he had sold out his holdings and was
going away on vacation.
This report was received with credcnce
on account of large settlements said to
have been made with his firm last ev-
cning by several bear houses.
Mr.. Sully said today:
''It is true / am going away on a vaca-
tion for two weeks. / think have earned
a rest
Liverpool, Eng, Feb. 2.-Cottor opened
excited today. Distant months were
about 10 points and others about %
points higher. The demand was active.
Trading was quicter than yesterday At
1915 p. m. values showed an advance OF
13 to % points over the previous days
closing prices. In the afternoon the ma
ket was active but prices declined, Feb
ruary from $50 to $50, May and June
from 8.87 to S.64, and July and August
from $50 to S.67. They rallied little
towards the close, which was easy, VI.
changed to points higher than the prs
vious closing.