Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-07
The World of
Finance and Trade
NEW YORK COTTON.
Several Significant Developments This
Morning.

Morning.
Special Dispatch to The Star.
NEW YORK, September There were
several very significant developments In the
morning cotton market. Yesterday opera
tors were trying to learn the opinion OF the
trade on the Washington report. what
individuals might think OF the showing was
of little Importance. The real factor in
making prices at this season OF the year
Is the attitude Of the consumer. II spin
ners fail to buy freely. the weight OF the
new crop moving to market Is quite apt TO
cause depression. even though the crop may
turn out a short one in the end. This was
the case two years ago when premature
advance from 01a cents to 10h cents In Au-
gust and September ended in decline TO
D cents before October and 171sc. market
In the middle of the winter.
With the Washington figures much higher
than had been anticipated and prices
doomed to lie and over en- the theory or
n very short crop the attitude of the trade
is most important consideration. Should
spinners interpret the figures as favorable
to an extent that would warrant them IN
holding to their policy of buying moder-
ately. there would be no substantial basis
for a bull movement at the time unless the
most cotton is available in the south. The
first signs of the spinners Interpretation Of
the report came from Liverpool this morn
Ing There the market declined sharply
q to points. though an advance of few
points was due after the recovery here yes
terday.
The Liverpool decline could hardly be ex-
planned on any other theory than that the
south was selling cotton IN greater volume
than the trade was willing TO take at pre-
vailing quotations To make sales lower
prices were accepted. AS exports last sea-
son were not far from 9GOo 90 bales for
eign spnners are we'll supplied with cot
ton-better supplied, according to all re-
ports. than they have been in six years.
If foreign spinners are satisfied with the
~ ha M in md
declines only the outlook would not be en-
couraging for higher prices at the moment.
The break In Liverpool attracted more at
tention on the floor Of the exchange than
anything that has happened IN some time.
1t served to increase the selling power
and at the same time prevent many from
buying. There seemed to be more cotton
offered than at any time yesterday. This
selling did not come from any one class OF
brokers or houses. There was even less
professional hammering than was notice
able yesterday.
One prominent seller of yesterday. who
put out 5000 bales Of December at 1880,
seemed to have very little cotton for sale.
That is. a new set of sellers appeared as a
result OF the Liverpool decline. There was
the same buying Of October at 1925 and the
prices worked through these figures during
the first hour, and October sold at 1892 and
December sold as low as 10.42. On the de-
cline shorts covered and prices rallied 3
points or more before noon.
There was nothing weak about the mar
ket. Prices simply sagged on larger Offer
ings. 1t was noticeable yet that a certain
class of spinners was willing to take cot
ton below 1Onc. There was the same de-
mand this morning SO that there was moth
Ing like an open break-simply a low range
of prices. This was the natural result of
the uncertainty over the size of the crop at
this season. There Is too much depending
on the frost date to permit even approx
Innate accuracy In crop guessing. An early
frost would cut the yield down 500 600 bales
In night. Those who have goods sold
ahead and need cotton in October or No
yember are buying moderately to supply
immediate wants.
The aggregate Is sufficient to form a con-
siderable buying power. though increasing
receipts make the extent of their power an
open question.
There is. in addition to the trade buying
on declines demand for futures from
these who bought higher. Whether founded
on fact or not. there Is a popular impression
not only at the exchange. but In cotton
circles generally that certain Wall street
nc uses have become interested in cotton on
the theory of a short CROP More cotton Is
bought on decline of 30 or 10 points, and
the long interest accumulated. This makes
q very strong or q very menacing position
in proportion to the correctness of the at
titude. Should the crop prove much larger
than popularity believed, this cotton will
come on the market in the shape of ltouida-
ton. Wall street interests sold cotton lost
dences that the crop Is as small as 1t was
that year. and in addition the season fol-
lows production of nearly IA 100000 bales.
n IT one of 10. $50 600 bales.
The market this morning was active at
times. with October selling from 1O42c. to
1O.32c.. and back to 10.3Sc. at midday
loss of points from last night. Commits
sion houses sold some cotton on stop loss
order, and at the same time there was new
buying on the theory that a break of nearly
cent from the high level of last week en-
titled the market to a reaction, If nothing
more. While rather soft at times, the tone
could hardly be termed weak