The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-11-12
COTTON

There II a bitter fght on ia TIE cot
ton market. and the cotton situation
IS one that y beginning TO attraet .
great deal Of attention IN banking
circles.
The fight in the market reSokes
yer. largely around the Efforts or a
pool headed b. Z II We'd 10 hold
the December option at ar artincla4
difference over the later months II
October this pool III ccHtro4 u
most Of the local stock. and then De
gan 70 force Up the price OF me
December option until December i .
4 bale over JanuarS-wnen IN the
natural course Of events DeceWbet
would be under January. This squeez
ing OF December at a time Ike the
present has mixed up the market sc
that there are leading brokerage
houses. both here and IN New or
leans. who have refused 10 take ne"
business. and the outsider IS waiting
for the first 10 be settled one way or
the other before v~enturinS into the
market.
+. NJ. Weld is looked upon as the
bull leader III the fight that Is no"
raining and the bear leader IS
Theordore II. Price.
Since banking circles ave become
interested in the struggle. both sides
are ma Xxi ~ explanations o. ~ go -
feet his contest over December cot
ton is having on the financial sftua-
ton. Yesterday the report was started
that cotton was coming mere from
Liverpool-as It has dcne in squeezes
before. The bears claim that the De-
cember manipulation has -disorganized
the situation SO that ii is seriously
intrfering with the movement OF cot
ton toward this country. The bulls
claim that they are trying TO force
cotton to New York in order 10 faclll-
tate it's movement and that they are
helping instead of hindering the move
ment Of gold from Europe TO the
United states.
81. 900, O Worth in City.
There is at present about $1,000, 900
worth of cotton in New York. 1t was
financed some time ago, and its hold
ers do not seem to have had any great
difficulty in keeping the money IN II
even in times Of a financial crisis. If
the squeeze continues there Will, Of
course, be a great deal more cotton
forced here before the end of Deem
Der. The bears claim that If the
pressure is held on there will be at
least $4,000, 900 tied up in cotton in
New York before the end of the year,
and they are encouraged by the belief
that the banks will discourage such a
condition of affairs.
The bulls, however. assert that the
best way to get cotton moving is to
force the bears to bring It here, but
they are positive in their claims that
they have no intention of running a
corner
The leading bankers of the city
have had both sides of the situation
presented to them, and it certainly IS
an interesting condition of affairs when
it is considered that cotton is the crop
which brings the foreign gold. and
that during the past three years. ex-
ports of cotton from the United States
have furnished on average of 90 per
cent of the balance of trade in favor
of this country.
The tightness OF money is undOubt-
edly having a great eff ect on the cot
ton mavement. regardless of what the
traders in cotton futures are doing. In
some parts Of the South the farmers
are refusing to offer their cotton. but
this is not having as much influence
on the movement as is the fact that
buyers are not in a position to make
offers. Wires from the belt Yesterday
said that in some towns cotton was
offered one-half cent a pound under
the market if the buyer was in a
condition to pay cash.
Weld Defends His Position.
Mr.. Weld, the leader Of the bulls in
the December manipuiation. said yes
terday in defense of his position:
'In view of the efforts being made
by those who are short Of December
option in New York to bring into dis
credit those merchants who are long
of the option. we deem it only Just to
ourselves, to our state our reasons for
our POSITION. Our firm is probably
the second largest export house deal
ing in raw cotton in the United States.
and, as such, we have made larg@
sales to foreign consumers. owing to
the firmness with which spot cotton IS
being held in the South. it is very diff
hcult for merchants, such as ourselves
to purchase cotton there to fill our
sales. as in the ordinary coure Of such
business. We are. therefore. long Of
December cotton with the purpose OF
requiring those who have sold 1t to us
to bring the cotton here to New York
from the South in order that we may
export it and fill the sales to merch-
ants and spinners on the other side
which We already have upon our
books.
THE maximum stock in New York
on July 30 WIS 19t.274 bales. Today it
is 124.S89 bales and is daily decreasing
largely owing to or sales out of New
York stock for export 1t Will on
tinue TO decrease rapidly. and such
cotton as may be brought here on on
tract will be Immediately exported by
us in fulfil1ment Of u sales to con-
sumers 1t is not our intention to at
tempt any orner of cotton in this
market. nor as long as Ne have any
say in the matter viii any corner take
place. IN fact. our holdings of De-
cember cotton are sufficiently large
to insure prompt eXrOrt of cotton now
IN New York and such cotton as may
come here hereafter.
Far from o~bstructing the export
Of cotton from this country our hold
ings of December cotton will enable
US to add materially to this movement.