Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-03
The World Of
Finance and Trade
NEW YORK COTTON
MOST IMPORTANT REPORT OF
THE SEASON FROM WASHINGTON.

Special Dispatch to The Star.
NEW YORK, October 3-The most i'm
portant Washington report of the season
was received today. 1t was a surprise,
just as the last one proved the deteriora-
ton being only point. when or 4
points had been expected. As compare
son with previous years, the figures of
III could hardly indicate anything but a
larger crop than the reports of the last
month had led traders to expect. With
an average higher than for years. with
the exception of last year, and with the
enormous surplus from last season, 1t Is
not surprising that the cotton market
broke % points on the figures There
was general agreement that the show
ing was very bearish, however prices
might be rallied after the decline of II
during the last ten days
The showing of 11.2 is Is points over
that of year when the crop was over
I0. 100000 bales. and 10 points better than
another season when the crop was TO-
100000 bales. The recent figures on the
size of the crop will have to be revised
to meet the Washington indication.
The market broke from I0.4e for De-
cember to 1915 before there was much of
a rally. There was heavy buying by
shorts and on the decline some cotton
was taken on the theory that the market
would not break through 10 without d
struggle on the part of the planters to
| maintain the price and prevent a collapse
In the market here and aboard.
During the morning there was another
break In prices on the failure of Liver
pool to respond to the improvement here
yesterday. This Iefttmany who had COW
cred. intending to resell at a higher level.
to put out cotton again. and the selling
carried prices lower than yesterday. AT
one time October was off Is points. maxi
Ing the decline % points in two days.
!, n,f~t To-,
was only off Is points. The weakness in
October had a depressing effect on senti-
ment in other directions, and in view of
the favorable weather for cotton in the
south and the fear Of more favorable
Washington report than had been looked
for few weeks ago, the market did not
receive adequate support
Some shorts took advantage of the de-
cline to cover, and some holders sold out
stop-loss orders. owing to the October
weakness. A large long interest has been
holding. on in the hope that taking up cot
ton on Octobers contracts would bring
about advance. But the days pass
more and more cotton seems to. be for sale
to those who are already long on the actual
stuff, and more cotton is being delivered
than was expected. Should the south con-
Guide to accept lower price, there would
hardly be an active demand for the New
York stock at advancing prices.
October sold at TO- 10 this morning, which
Is the lowest price In three months. Not
low 1920 The weakness in the near months
In New York carried the market 10 points
below New Orleans at one time Holders
were inclined to sell their cotton before the
report bearing a repetition of the break of
a month ago, when the. figures We're disap-
pointingly high. They supplied shorts with
all the cotton they, cared to buy, and
though shorts covering was general, the
market ruled to 10 points under last night
most of the morning.
1t was evident that some of the longs
We're hedging their cotton and that others
We're disposed to get out OF the market
under the circumstance. When the price
started to decline last week some of the
important operators sold here and in Liver
pool The selling did not indicate change
of opinion on the cotton situation but
merely represented practive measure that
the larger professionals always follow when
a report overhangs the market
II the figures are higher than looked for
the cotton would not be bought back until
prices have declined If lower than antici-
patedr the buying would take place at once
Many of the large speculative interests take
smaller risks than the average trader on
small lines of eottena s-s .aH4f~| 49,