The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1907-11-21
BEARS GETTING DESPERATE.
If farmers Stand Firm They VIII Get
Good Price for Cotton.

IL f-&2tNStS St<1hS AZ DN IVY w ~ NV
Good Price for Cotton-
New YORK, Nov. lS.-pfessurs OF
the most pronounced sort Is beng
brought to bear upon the cotton
growers of the South to break up
their holding movement and thus
bring into the cotton growing market
such a mass of the staple as VIII cd
able the enormous speculative snort
interest In this city to oeprsss prices,
so that the bears can close out thelf
market CANDLES by shifting Their
losses upon the growers Of the South.
As December draws near and the
members of the big bear pool are
confronted with the possibility OF
paving prices at present ruling IN the
South, or even higher prices, for cot
ton with which to cover their short
December contracts, they are resort
ing to desperate means IN the nope
of extracting themselves from q most
uncomfortable position Stories OF
the widest sort have been clrculat-
ed freely with the idea of convincing
tna N b.nL;ny Interests that the cotton
@so,Dsrs essn p by Leening their crop out
ef "s', The ,,nsrket ~ until better prices
eo,,id 20 he obtained have deranged
the entire normal market for foreign
exchange and are adding to the
snonev stringency from Which the
country is suffering. In this their
efforts have been entirely unayailing.
The banking interests, knowing the
facts, have refused to take this view
of the situation. They are satisfied
that the trouble lies with the ex-
change market and not with the cot.
ton market; that it is the inability OF
buyers to finance purchases that is de.
LAYING the bringing of fresh gold
from abroad.
The real trouble responsible for the
threatened squeeze in December op-
lions in New York is not due to a
speculative long interestbecausenone
exists: it is due to tremendous short
interest. The bear pool, headed by
Theodore II. Price, is currently re-
ported to be short more than 300 600
bales of the December option.
AGAINST this speculative short inter-
est are the hedges held by the spin
ners and exporters who need the cot
ton for legitimate manufacturing and
exporting. The need of the hedge
"iongs" has inspired the current
premium. This also has given an op-
nortnnity to the speculative shorts
to circulate a story that some thous-
snds of Gales were being shipped
back to New York from Liverpool to
cover contracts. This report. how
ever, met a speedy death through
the action of foreign spinners in TAX
ing every available bale of spot cot
ton In the Liverpool market on the
very day after the reshipment story
was started.
The latest among Mr.. Prices inter-
esting moves in the hope of inducing
the Southern growers to aid him to
get cotton TO New York for the pur-
pose of covering the short contracts
of his pool, is a widely advertised
offer to deliver currency to the South
| IT, exchange for cotton. AS his offer
is good only up to 80 per cent OF the
selling price of the cotton, and as he
announced that the prevailing New
York premium on currency, now
| ranging around 4 per cent, will have
to be paid by the cotton shippers,
such a move Is by no means benevo-
| lent on Mr.. Prices part. 1t also
shows how badly Mr.. Price wants to
get cotton here for December de-
| 1fiyery
The entire situation as regards De.
cemher cotton has resolved itself
into STRUGGLE between the Price pool
an the one side and the tremendous
bona fide demand for the actual cot.
fon on the other. This demand re.
sisted ali the ideas of the men in tie