Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-12
The World Of
Finance and Trade
NEW YORK COTTON
BUYING BY SEVERAL OF THE
SPOT HOUSES.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. September 12.-The most
important event OF the morning was the
buying OF cotton by several OF the spot
houses This was believed to mean the
sales OF cotton to spinners or the inability
to buy actual cotton in the south on a 10Ac.
New York basis. Whether the buying was
due TO better demand for cotton or to
diminished amount for sale at the decline,
the effects on ring sentiment were the same.
Some Of the shrewdest traders covered
freely on the early break that carried De-
cember to 1921. and soon brought about a
reaction Of or points. The market did
not react with snap and animation. and in
this way disappointed many professionals
who bought for a rally. Prices have de-
clined about 81 a bale. and in view OF the
strength of the dry goods position and the
fact that the mills will soon be in the mar
ket for cotton helped the short covering.
At the opening the decline In Liverpool Of
5 to points failed to cause a break here.
The decline OF or points started liberal
offerings by two or three OF the larger
operators. and prices were showed down Q
or points. On the decline large blocks of
cotton were taken by different interests.
and 1t was not long before the absorption
began to tell on the prices December ran
up to 1928. and the whole list ranged but
- VI poiilS DtIOW last night III the emu Oh
the first hour. Liverpool recovered some
but the tone OF both that market and OF
New Orleans was rather weak.
On the break some stop loss orders were
reached, but not many. The impressive
fact about the market was the general
steadineSs, due to the buying that seemed to
come from all directions. On the break be-
low 1875 for December nearly every broker
IN the ring seemed to have an order for a
hundred or a few hundred bales of cotton.
When these were all executed the aggregate
seemed great enough to absorb all the cot
ton offered and this made rally seem prob
able. The uncertainty over the weekly re-
port at noon helped the short covering so
that the market reacted just as 1T did yes
terday end then closed fairly steady in
Liverpool.
Whatever may be said in favor of lower
prices the fact remains that the market
goes down very slowly. Prices have been
at this level three four times since July
4, but each time have turned quickly. Trad
ers are therefore watching developments
with more than the usual interest waiting
to see whether the weight of new cotton is
enough to change the position from that
existing during July and August. New cot
ton in abundance is factor, but should
cotton prove hard to buy in the south below
l9c the line Of October held here would
receive more attention than any other fac
tor for the next month. The cotton coming
in now was bought for future delivery some
time ago, so that the effects Of the decline
oIl TIE tcIHDeI Ol liG SoulU nave yet 10 De
reckoned with. Any falling off In receipts
would attract instant notice.
The weather report was about as ex
pected. showing normal deterioration for
the season of the year over most of the
cotton belt. There was nothing in the show
ing to indicate about abnormal deterioration
and this left the sentiment in the market
still favorable to larger crop figures than
those prevailing Il few weeks ago. While
reports from the eastern belt were not such
as to hold out the hope of much of a top
crop In Texas. conditions were more favor
able Weather was said to be very favor
able for picking.
After the report prices broke 3 or points
and then short covering began again.
Cotton Closing.
NEW YORK. September l2.-Cotton:
Spot closed quiet. 10 points lower: middling
uplands. 1865; middlng gulf. 1890. Sales,
305 bales.