The St. Louis Republic., 1904-12-07
COTTON MARKET BEGINS
TO RECOVER EQUILIBRIUM.
SOME WEAKNESS SHOWN AT
LIVERPOOL.
Cables for a Time Demoralize
New York, and Opening Is
Weak, Decline Being 70
to 10 Points.

REPUBLIC SPECIAL
New York, Dec. 6.-The cotton market
was quieter to-day and there were indica-
tions that the trade is adjusting itself to
tho new set Of conditions which developed
with the Governments crop estimate.
The trading was still large in volume,
but was much moro rational and the un-
dertone OF the market was steadier. The
only weakness wns at Liverpool. where,
points. which was the expectation, so us
to conform with our net fluctuations OF
yesterday. n break OF English points ad-
ditional occurred IN both spots and futures.
on what was reported to be Il continuance
or hedge selling there. and further heavy
local liquidation and selling for Egyptian
account
These cables had deInoralizIng effect
mere Tor a time The result was that the
opening was weak, with the declines ex-
tending from Il to 10 points under the lead
OF the January and March options. Before
the end OF the opening call, however. #
was seen that the market was being SUP
ported, and news began to come in from
the South that holders were refusing to
sell and the banks were taking care of
what loans they had outstanding and
there would be no sacrificing of cotton at
TINS time Prices Were quickly bought
and bid up 10 points. This recovery was
tcilowed by further advance of 10 points,
which carried the whole list up on the
average OF points over last nights clos
ing.
The market developed renewed weakness
In the late trading. and slumped nge
points below yesterdays low record prices
and May went down to within q few points
of their low records. This was due 10
rather good local and fresh Southern sell
few days has been furnished by the COW
erfng of shorts by the big bears, and
some moderate purchases on the declines
by spinning interests. The real attitude
defined.
Meanwhile. general sentiment is SO much
against the market on the Governmen ent's
monster crop estimate that there is lit
tie support.
Prices for spot cotton were further re-
duced ten points to-day to the basis Of
cents for middlins in this market, and
seaboard points.
NARROW NEW ORLEANS MARKET.
New Orleans. Dec 6.-To-morrcw's
Times-Democrat, in its summary Of the
cotton situation. will say:
Yesterdays cotton market switched
such things are reckoued nowadays There
was more tail than head in evidence In
the contract division: Spots, firm at the
decline and largely In demand. tempered
hammsring and caused many bears to
take profits. The market iB yet vibrating
from the shock 1t received Saturday morn
Ing. and the echoes are not likely to die
Meanwhile the bears are Just about
drunk with success. though that Same sue
cess. in professional way, has not bene-
campaign engineered By the bulls benes
ftad the other side. The reason for this is
plain. Tho bears fought the bulls tooth
and nan and lost their hides In conse-
Quence. whereas Of late. In the absence of
speculation stda larger
portion Of the decline has occurred with
hardly protest from the bull faction, the
sole support OF the market for days at
taking by the short side. the sellers be-
ing the dissatisfied bull remnant. but more
frequently bears Just getting In or bears
getting In deeper.
In this way the legitimate hedges Of the
bulls were alone sufficient to put gold In
the pockets Of the persistent bears.
Thus far the country has taken Its
viii. Of course. DO torcod out. but nothing
near 50 much as the bears would like TO
SEE Should tho farmers and the bankers
continue to stand shoulder to shoulder and
q little moro. tho zeal of the spinner Is
certain to grow. But should they show
the feather, the spinner will not only hes
demand and receive w material s % coneesyons Ss Ia.
on the little he does buy. This Is nothing
more nor less than ordinary human ma
turo.
"A small, though rather important, fea-
ture OF the situation is the fortunate posi-
ton in which purchasers of spots who
have hedged in tho contract market now
ind themselves These hedges were made
for protection only. but the Increasing
parity In favor Of spots has givon all such
operators very nice little profit of about
81 bale after complete liquidation. IN
this way several hundred thousand bales
have paid or can be made to pay a hand
some profit where none was Anticipated.
In striking contrast with Ldverpool. the
spot situation In America continues to i'm
were the talent recovered from Satiir-
days big JOLT, would prove a strong trump
card In the hands of the friends of the
price. But with the markets Of the world
yet In demorallzed condition, none can
say the bottom has or has not been