Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1906-02-02
THE COTTON SITUATION.

There Is a widespread feeling that
while compared with what the grow
ers of this section have been so. long
accustomed to, the price Of cotton Is
quite high, still in view Of the condi-
tions that ordinarily control -. the
situation, the figures are rather lower
than they ought to be. OF course,
there is no way Of telling the exact
supply Of raw cotton; but the gener-
al public feels thoroughly satisfied that
1t Is not sufficient to meet the require
ments of the splnners, and in view of
the prices that are readily command
ed by manufactured goods Of all kinds,
1t seems reasonable that the tendency
Of raw cotton should be upward in
stead Of downward.
The daily market letters Of the lead
ing spectators contain all kinds OF In
formation as to the probable trend of
prices, their tone generally being gov
erned by the attitude Of their respec-
tive writer's. For instance one may
read that because the crop has turned
out to be so much larger than was ex-
pected, and because the famine for
manufactured goods recently prevail
ing Is about at an end, the spinners
are less urgent In their requirements
and the trend of prices must be lower"
This proposition, supported by long
array Of alleged facts and statistics Is
calculated to change the timid bull In
to a bear; but when his eye drops
down to the next letter and he sees
how "the government estimates in
clude several hundred thousand bales
Of last years crop, and how the figures
are given in 450 pound bales instead
of 500 pound bales. and how the mills
have not yet been nearly able to meet
the demands upon them, and they will
soon have to buy cotton" he becomes
bullish again.
In a talk with an experienced local
dealer a few days ago, the reporter
suggested something like this. s
"Of course, you don't know; but
would be very much obliged II you
would give me your idea as to what Is
the matter with the cotton market?
What has caused this decline since the
publication of the census department
gianers report?"
Speculation" was the reply, lover
buying on the part Of southern specu-
lators. Our people down south are
all bulls. They are satisfied that the
mills are going to need more cotton
than they will be able to get, and they
cannot see 1t any other way than that
prices have to go up. Consequently
they do little else than buy.
1.-THE bear element has just been lay
ing for this very kind Of situation
and has been prepared for IT. They
took care not to overload themselves,
and when the southern bulls were
loaded up to the handle-had their
backs hung. as the cotton men say
they commenced selling. The bulls
had already gone to the limit Of their
resources and were unable to protect
themselves. AS the result prices went
down, down, Presently the bears
will turn bulls, begin buying and prices
will go up again.
1.-THE mills are helping the bears
there Is no doubt about that In my
mind. No matter how anxious they
may be for cotton, they are careful
about doing anything to distrub the
market. But I don't think this condi'
ton can last. If the people who have
cotton will just hold on to 1t three
months longer, they will begin to get
good prices. I look for something like
12a or 13 cents, maybe more,
"The market as I see 1t now. Is en-
tirely speculative; but this situation
cannot last. The mills are bound to
have the cotton and II the holders OF
cotton will only continue to hold
prices will have to advance"