The Montgomery advertiser., 1904-04-18
THE COTTON SITUATION.
The Statistical Position Good For
 Higher Prices.

hlguer Prices.
 New Orleans, La. April 1s.-with the exception of one day, Thursday, the bears had the advantage in the market all week and as a net result quotations are N points lower than last Saturday. The first half of the week the very much em- boldened bear element, particularly the New York bear clique, made most reck. less and violent attacks on values and in their confident onslaught succeeded in driving July down to 142o. Longs, biz and small, became ueneasy, and, in throw ing their holdings on the market, were of much assistance in causing the heavy de- cline. A large short interest was created as matter of course by professionals as we'll as by outside speculators. which only required the slightest inducement to run to cover and be the cause. of big ad- vance. Such indueement was offered on Thursday by the development Of a sud. den and enormous demand. for spots, re- sulting in official sales of f7,4oo bales on that day and additional sales of 20,00, bales not reported. making 1t the banner day for spot sales. A violent upturn in prices of 3-4c was the natural consequence of such activity in the spot. market and further advances would probably have been recorded since, but the spot market fell back into Its former dpllness with only small sales. giving the bears re- newed excuses for attacks and turning the, course of prices again in their favor to small extent: The stock argument of the bears that there is no demand for spots and that spinners cannot be induced to buy is not borne out by the actual facts as reported from day ito day. The sales in our local market this week sum- med up total of 2s.oo0 bales, exclusive of the large sales not reported, against sales of 10000 bales this same week last year, or three bales sold this week for every one bales last year.. On the other hand, such large sales and exports are absolutely necessary and must be contin- ued until stocks are reduced to last years figures if prices shall be maintained and no bull campaign can be inaugurated un- less stocks are first moved out and con- sumed by spinners. Fortunately for the bulls. spinners everywhere are very much behind in their takings. and, according to ordinary reasoning, will require large ad- ditional supplies to keep their nils go- ing. The worlds visible supply show ing the large decrease of 135 900 bales for the week. cannot fail to show to the most obtuse everywhere that a dangerous fam inc can be seen already on the horizon ready to create havoc in the not far distance.
 American suplies are down to 1,9o8,Ooo bales, equal to about nine weeks normal worlds consumption, such a condition as has not been seen in the past twenty years. Liyerpoofs stock of Americans afioat and ashore shows the unprecedent- ed low figure of 542000 or PA, 600 bales be- low last years even date, when the re- suit was extensive closing of mills for want of the raw material. In spite of all such arrays of bullish figures the spin owfr txAt Az the future course of prices, claiming that he cannot sell his goods at a profit and apparently does not care what becomes of cotton. For the present the course of prices will be guided entirely by the de- mand for spots. and if the large supplies in our market can be disposed of to spin nera. prices are bound to advance to high CT figures, as almost no cotton Is coming in to replace any sold stocks. As to the next crop, 1t Is too early, and no opinion can possibly be formed. 9a,i 'e'
 Ed Eisenhauer & Go.