Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-13
The World of
Finance and Trade
NEW YORK COTTON
SPOT HOUSES BUYING SHORT TO
COVER.

NEW YORK. September 13.-The short
covering and buying by spot houses that
proved the feature yesterday, was again In
evidence this morning. There was more ef-
feet prices however, and instead Of
decline the market recovered 16 points be-
fore noon and was decidedly steady.
Whether due to the buying of October
cotton by those who already control large
interest IN that delivery or to the diminish
ed offerings of actual cotton on the decline
in the south. the effect prices was the
same The reaction came from the fact
that shorts found difficulty In buying cotton
at rising prices. 1t was perhaps as much
the increased desire to buy or the decreas-
ed amount of cotton for sale at the lower
level.
That is several local traders who sold
freely over 101z cents and were rather bear
fsh in their views, not only refused to short
on the decline, but actually bought cotton
for a reaction. With many short and fewer
willing to sell. 1t did not take much to
start the rally, and an upturn from 1871
for December to 1916, while October sold
from 1925 to TO- before midday. Trading
was not large, and for this reason 1t did
not take much buying to turn the market.
Early in the day Liverpool declined points
and then recovered points The recovery
abroad was regarded due to the same
yesterday, namely, the diminished account
of cotton for sale below 100 cents in the
south. 1t does not make much difference
whether the crop Is 10.OOO.OOO bales or 49,
100000 bales as far the effect of let up
in cotton offerings goes.
II the planter has ideas of values that
later on may be proved erroneous 1t will
error. and the immediate course of prices
must be determined by the facts in the
case A number Of operators who talk
much lower prices later on bought In cot
ton yesterday and this morning, and were
willing to wait and see how the decline az
fected the south 1t looked this morning
as though buyers could obtain a few hun
dred bales here and there. but not enough
pressure removed. it did not take operators
long to see the possibility of rally, and
prices recovered readily.
At noon cotton sold where It did week
ago, and In the meantime all the pressure
had caused a loss Of but ten points below
the low figures of last week.
When the reaction started this morning
those who offered so much cotton yester-
day, to get prices lower. bought freely. The
rally started with the buying of October.
This soon had an influence on the entire
market. and the advance moved along the
line. Shorts in December and January
bought and so helped the recovery.
listing relation between buyers and sellers
in the October option the future market Is
likely to continue one of uncertain POSSIBLE
tiles This depends in great measure on
the plans made by the holders of October.
Some believe so much cotton is being sold
from the south for delivery in New York
that rise of thirty or forty points would
supply all the contracts any one would care
TO buy. Others believe there Is no inten-
ton on the part Of those holding October
to do more than get the actual cotton.
This class is impressed with the character
of the buying and believes there is far
reaching plan IN the minds of the Wall
street pool that will develop as the season
wears on. Whether the plan may prove a
profitable one not, 1t is unquestionably
a market factor of the first Importance and
has decided influence on the doings of
the traders here in New York.
Cotton. Closing.
NEW YORK. September 13.-Cotton: Spot
closed quiet, Is points higher: mlddling up
lands, 1880; middling gulf, O5. Sales, ~
bales.