The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-02-03
SALES
ARE ENORMOUS
Su|Iy the Bull Leader Will
Take a Vacation
DECLINE WAS SENSATIONAL
In Fifteen Minutes Every Broker Be.
came a Seller and Prices Fell
Vertically Cent
Pound.
DECLINE WAS SENSATIONAL

New York. February 2.-Heavy selling
and a violent break in prices marked to-
days business in the cotton exchange.
the days slump being even more sensa-
tional than the recent advances whicn
have steadily sent cotton quotations up
ward until yesterday they reached the
highest level since 1875.
Under the influence of numerous causes,
chief of which was the confirmed report
that Daniel j. Sully. the supposed leader
of the upward movement, was about to
take a vacation, and enhanced by the
belief of many operators that its culmin-
alton had been reached quotations for
all months collapsed to the extent of from
s6 to s. per bale, and utter demoraliza-
tion ruled in the pit. No failures were re-
ported but the violent fluctuations repre-
sent losses of millions, distributed
throughout the market.
Transact. ons Were Enormous.
Transactions during the day were enor-
nous In the aggregate, the days sale be-
ing estimated at 100000 bales. The break
was checked finally by renewed bull sup
port, and a rally followed. The close was
about steady.
The day opened with sharp break in
prices under the influence of generally cir
culated rumor of settlements by short in
terests effected since yesterday. This sent
quotations down a half cent per pound
but denial of the rumor brought about
substantial recovery.
Barely had the market steadied after
this movement. when the report of Mr..
Sullys intention to take a vacation be-
came current, and prices again started
downward. 1t was inferred that this
meant the successful disposal of his inter-
ests and the abandonment of his CAM
paign, and when he was quoted to the eff
feet that he was about 70 AXE a two :
weeks vacation, the downward movement
became a panic, selling orders pouring
in upon the brokers. and the market went
to pieces, quotations melting away and
10 points at time.
In fifteen minutes of this panic, with
every broker a seller and none a buyer,
prices fell vertically almost a cent a
pound, and the May option in less than
an hour registered a decline of a cent
and quarter pound. variation great
er than would have been effected in a
week under normal conditions. Along
with the liquidation of bull spectators,
there was selling for short account.
Fortunes Werc Wiped Out.
The sensational decline continued ap-
parently until 1t had spent itself. After
1t had been going on for about an hour
and fortunes had been wiped out, a few
buying orders appeared and served to
allay the storm of liquidation and short
selling.
Then shorts began to cover and there
was quick rally of from 20 to 75 points
But 1t had been terrible hour.
The close was reasonably steady on the
active options, at from 20 to So 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 figure was reached
just before the decline began a report
was circulated that Dan J. Sully had
cabled his Liverpool correspondent that
he sold out his holdings and was going
away on a visit. Mr.. Sully said today:
ut Is true l am going away on a vaca-
ton for two weeks. / think l have earn
ed a rest"
oCTcS OF SHdTp DTcdNss
New Orleans. February 2.-The repeat
ed warnings and prophesies of conserva-
tive traders came true today, and the
cotton market showed series of sharp
breaks, the last and most severe of which
landed prives almost 100 points, or a cent,
under the closing prices of yesterday,
July showing a net loss of 81 points at
one time, at 17.10, while at the close
March was 70 points lower than the close
of yesterday at 1850, May II points lower
at 1712, and July 81 points lower at 17.40.
Unlike the two other memorable breaks
of this season, the slump was unattended
with much excitement. A moderate vol
ume of trade had been shown all day.
with the largest amount of buying COM
ing from room traders and outside
scalpers
All of a sudden the entire ring was
flooded with selling orders and prices
commenced, a mad chase downward.
They dropped and 10 points at a
time under the pressure. What weak
longs there were In the market quickly
let go, and added to the volume of SELL
ing orders Some few stop loss orders
were reached and thrown upon the mar
ket
Prices Showed Quick Recovery.
But almost as quickly as it was applied
the pressure was remOVeu' ana prices
showed a quick recovery on buying or
ders, evidently emanating from the same
source that the selling orders came from.
Room traders were quick to seize the
opportunity and their buying hastened
the recovery which at one time amount
ed to 40 points.
The market closed steady, but at such
a net loss that the general opinion was
that 1t would have great and adverse eff
feet on Liverpool tomorrow morning,
which might cause a continuation of the
decline in the local market. Some traders
thought that the manipulators who were
at work tonight would send buying orders
to Liverpool to support that market and
help drive prices up again in the local
market tomorrow.
Early in the day 1t was the general
belief that the market would be manipu-
lated for a wide break before the day
yer, and many brokers advised GUS
-nIra-. to keep out of the market. Nearly
a xers asked SO a bale margin. while
sked SIS.
IlIy's Rumored Departure.
"a close it was the generally ex-
,pinion that prominent longs en-
eafg the break to rid themselves Of
issne company, and also for the
would bring them. 1t was ru-
afta Sully had lquidated his inter-