Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1905-01-27
Delivery Day.

Just how 1t is all going to turn out
it will take time alone to develop; but
nevertheless the great silent struggle
that is now going on between the bear
spectators on the one hand and the
cotton producers of the south on the
other is full Of thrilling interest.
The present low price Of cotton Is
due to the sales Of millions Of bales
for future delivery at prevailing fig
ures. Because they believed that cot
ton is so plentiful that 1t must neces-
sarily become a drug on the market
one set Of spectators sold all that
another set Of spectators would buy
at prices that are generally below the
cost Of production.
These transactions were made under
the presumption that conditions this
year would continue the same as In
other years. That Is that the produc-
course, quietly accept for their hold
ings such prices as the speculative
exchanges might fix as properly meas
uring the value thereof.
AS a matter Of fact hundreds OF
thousands Of bales Of imaginary cot
ton are now daily changing hands al
purely imaginary prices, and the spec
ulators continue to realize profits or
losses as the case may be, the same as
formerly; but 1t is noticeable fact that
the movement in spot cotton is unu-
sually sluggish to say the least. The
price that will buy a hundred bales
Of contract cotton won't begin to touch
hundred bales Of spots, and this
probably is one Of the most tangible
symptoms Of the present remarkable
situation.
OF course, even II millions Of bales
of cotton have been sold for February
delivery at cents a pound, 1T would
not necessarily follow that delivery
day would bring any considerable ad-
vance in the price. That Is because
not one out Of a thousand Of the buy
ers or sellers Of contracts ever expect
to be called upon to deliver or accept
the real stuff. In most cases the buy
ers who have put up the small margin
of dollar bale would not be able to
raise the OlHeT thirty vi loIly uOiioi .
bale necessary to pay for the pur-
chase, and this fact secures the seller
from having to go on the market to
make good.
That story in another column Of a
legitimate transaction In Spartanburg
furnishes satisfactory Illustration.
Here a buyer Of real cotton, on basis
of the New York Exchange imaginary
prices, made a sale to a real user of
imaginary cotton. His sale was for
future delivery at about Z cents a
pound. He now finds that he cannot
fill his order even at cents a pound
not because of any advance in the i'm
aginary market but because the farm
ers who hold the real stuff all around
him won't part with their holdings at
any such prices.
There must necessarily be an end
to the present condition Of the New
York market. Even II the purchases
Il bona fide buyers are not sufficient
% bring things to a crisis on delivery
day, the time when only the real stuff
will count must come soon. Imaginary
cotton serves very we'll the purpose of
making lower prices: but 1t will not
make the yarn and cloth, and as the
mills exhaust their present stocks, they
must have more Of the real stuff IL not
dl Tic dTllllCldl PRICES pTeNdleul oii
the exchanges, at such prices az the
holders Of the real stuff consider fair.
While. Of course, the southern farm
er is not absolutely Independent, there
is no doubt Of the fact that he now
holds the key to the situation II he
will only act with wisdom. 1t Is true
that he may owe debts enough to force
his cotton on the market even in suffi-
cient quantity to keep the price down.
That his debts must be paid there Is
no question. He must not even think
Of inconveniencing his creditors, and
If he acts wisely this will not be nee
essary. Thanks to the good prices
that prevailed last year and during
the early part Of the present season,
almost every section Of the south Is In
"a position to take care Of itself finan-
cially. and faithful adherence to the
plans of the New Orleans convention
will satisfactorily solve existing pro-
blems without working hardships on
anybody.