Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-08
The World of
Finance and Trade
NEW YORK COTTON
PRICES RISE ABOVE THE EARLY
LEVEL.

speeia Dispatch to The Star.
NEW YORK. September s.-After a lower
opening the market improved steadily for
an hour until prices were IL or Ii points
over the early level. The feeling that
prices were likely to sag lower was SO gen.
eral in the local market that professionals
werc inclined to sell short. This selling was
increased by the break in Liverpool. where
offerings OF cotton from the south proved
in excess Of the demand But the market
failed to show weakness yesterday or to-
day. Sentiment was more bearish than the
market itself indicated. But the demand
for cotton below 10h cents seemed liberal.
and this morning the absorption Of cotton
on the decline yesterday and the day be-
fore began to tell Though Liverpool was
points lower at one time, all the loss was
recovered and prices abroad closed or 8
points higher.
The improvement abroad showed a more
liberal covering demand and there may have
been fewer selling orders from the south as
a result of the convention. The price be-
ing fixed at IL cents did not arouse much
enthusiasm in the local market, but at
tracted attention and comments. When
Liverpool improved brokers operating for
Wall street interests came into the ring and
made a demonstration in October cotton
There is nothing calculated to turn mar
ket quicker than an aggressive buying
movement in one of the immediate options
1t did not take long to run October from
10 30 to 1880, and December from 10 AZ to
1852. 1t was evident that the average
trader was short of the market and would
cover quickly. The disappointment over
the Washington report was such that the
market became oversOld.
Not Running Risks.
When the buying of October began prices
ran up steadily as shorts were not disposed
to run any risks. That is, there is no means
of knowing at this date whether a concen-
trated long interest exists In October In be-
half OF Wall street houses, or whether the
buying was merely an effort to scare shorts
into covering The only known fact was
the rapdity of the recovery. Prices ran up
about 20 points in a way that surprised a
great many. The market is about the same
kind of market as that of the last six
weeks, but the extent of the rise will now
depend more on the attitude Of the spinners,
as cotton Is moving freely. On an advance
cotton will be for sale by the south, though
the organization of planters is such that
less cotton will be for sale on q decline.
The reaction today was not unnatural after
the decline Of nearly cent, and a few
operators have been looking for the rally
for two days.
Await Further News.
AS far as the result OF the convention
went there disposition to await fur
Their news regarding the sentiments ex-
pressed on the resolution to fix the price at
lie. Some wanted 1O1ac. and others 12c.
The figure would show that conservative
interests are still in control of the Southern
Cotton Growers Association, and to this
extent deliberations are likely to be a fac
tor Of considerable importance. The south
Is growing a staple that brings back $780,
100000 or $500. 900 from Europe. An
awakened sentiment Is likely to have an
appreciable effect on prices. as It Is often
as easy to obtain cent or two more under
thorough organization as the lower price
through lack of It, While it is an open
question whether this resolution will have
a decided effect on the price of cotton dur
Ing the marketing season, 1t Is likely to be
an important factor before spring. Recent
success in holding at cents and in reduc-
Ing the acreage has led to greater eXpecta-
tons. Whether the price Of a commodity
can be legislated into existence by resolu-
lions or otherwise or not. the convention Is
likely to strengthen the attitude of holders
in declining market at this season.
The short covering movement increased
during the afternoon until prices were
about 80 points over the opening level.
Ring traders were short, and covered
quickly on the signs of a rally More or
less shortage was created after the report
on Tuesday, and when the price failed to
break shorts were not inclined to take
much risk. Some expected the reaction to
continue for a day or so II nothing more
Liverpool Cotton.