The Birmingham age-herald., 1906-01-12
elbert e cIax,s Market Letter.


 The unexpected strength shown by Liverpool this morning. while in a great measure due to the excellent spot bus mess that has been reported there lately, Is, nevertheless, most encouraging. AL most without exception cables report a marked change in sentiment and feeling, in the absence of speculative selling, is decidedly improved. The demand for spots is reported very good, and the sale of 1000 bales at an advance of 1 points was a strong feature.
 The active months in options opened steady at an advance of 4 points, which was increased to 2 shortly after. and closed, having held the strength ds- played early in the day, at a net gain of points.
 The American markets opened strong and active but did not respond in full, to the pace set by Liverpool AdviSss clination on the part of bears to raid the market, but on every such attempt fresh buying power was strongly in evil dence. All of which helped to keep that market very steady.
 In New Orleans, the trading was more active than on the two previous days, the volume of business being on a larger scale. The future market still awaits. however, a decided increase in the demand for spot cotton. Factors reported the demand to be of a healthy character. but actual sales were rather restricted, no doubt partly owing to the indictment con- dtion of the weather. The all absorbing topic of the day naturally turns toward consumption, and the questions most nat urally asked are: How much cotton has the spinner now on hand? When will this supply become exhausted? Does he exist on a hand to mouth policy; or has he contracts sold ahead that will necessitate the replenishing on a large scale, of his many spindles? Certain it Is that the dry goods market is in a most healthy condi- tion and that prints and cloths are in active demand at steadily increasing prices. Private advices from Liverpool state that the spinners are short and that they have sold goods in excess of their purchases of cotton.
 Abercrombie G Co.'s Market Letter.
 There assembled in New Orleans yester- day for the second time the Southern Cot ton Growers association, and although in it's infancy, it having been organized last January with the object of avoiding a panic in cotton as a result of the over production of last season when a crop of about 13SO000O bales was grown, It has made its influence felt more than once
 That it's mission has been well filled is testified to by the judicious manner in which the large surplus of last year was cared for by mutual agreement among the farmers and the voluntary reduction in acreage of about 15 per cent all of which brought about the desired effect; a higher level of values and a smaller crop.
 The association accomplished wonders. It practically controlled the market by advising its members to market their cot ton slowly. It reduced the acreage suf- ficiently to insure nothing more than a moderate yield, the use of commercial fer tilizer having been restricted to that end and the result was that prices were lift ed from to 12 cents This much accom- plshed, 1t set to work to purify the agri- cultural department where a leak was discovered, and having proved It's case, the dismissal of Holmes and the resigna- tion of Statstician Hyde was the result.
 Loveman G Co.'s Market Letter.
 Interest in the cotton market has been temporarily diverted to the big cotton convention, which began it's three-days' session in New Orleans yesterday. All in telligent operators in the market realize that on the outcome of this representa- tive gathering of southern planters, mer- chants and bankers, depends the future course of the market. Harmony and en- thusiasm were the keynotes sounded at
 
 Fifteen cents for the rest of the crop," seems to be the rallying shout of the members of the association Stand pat and we will win another great victory was one of Harvie Jordan's sentences which was wildly applauded. To a close observer of what was going on at the convention, there seemed to be strong undercurrent of feeling in favor of again restricting the acreage. This would mean another moderate sized crop next season when the visible supply of American cot ton, should consumption continue on the present scale, will be reduced to a mini mum.
 The position of the spinner, in the like lihood of such an event as that coming to pass, would be unenviable indeed Disas- ter would stare him in the face To our mind the sensible thing for the spinner to do would be to accept the facts of the situation as 1t exists today (which are unquestionably bullish), and to pay the producers price for the rest of the crop The higher prices would naturally tend to increase the acreage planted in cotton this year, and the chances of disaster to the spinning trade that would result from another short crop would be greatly lessened We believe that tho proper course for the spinner Is to meet the pro ducer half way. In that way only can the present deadlock between the producer and the consumer be broken, and a modus vivendi established.