Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-05-19

the price OF cotton. we Cdlnol Coh-
ceive how any southern-owned mill
could figure out it's own advantage in
such a policy. But we can see how a
northern controlled southern mill, and
nOrthe IN manufacturers and specula-
tors generally would be willing to go
tn almost any length to keep control OF
the cotton market, and we believe that
this is largely what is the matter. Is
it not a fact that for years and years
the manufacturers controlled the price
of cotton absolutely, allowing the pro-
ducers only such prices as would in
duce them to produce as much Of the
raw staple as seemed necessary? Is 1t
not a fact that there have been times
when the margin of profit between raw
cotton and yarn was two or three times
as great as the original price OF the
cotton? Then since the producers
have begun to make a serious snow
of.lessening these margins to the linn
it's of reason, is it surprising that the
people who have been in control for
fight to recover their supremacy?
1t is true that business is depressed
north and that the recent panic has
been felt around the world, but some
how we have never been able to feel
that these circumstances have had as
much influence on cotton as has been
attributed to them. Both these cir
cumstanceS are more than conterbal-
anced by a generally conceded short
age Of at least 25 per cent in the
worlds annual supply of cotton, and
the depression in prices has been due
more to the manipulation of specula-
tors than to anything else. We have
not yet been willing to concede that
the real object of last falls panic was
not to smash the price Of cotton so as
to keep the south from getting such a
tremendous profit as seemed to be
turned in this direction. 1t is quite
certain that if the farmers of the south
had tried to sell their holdings then,
prices would have gone almost to
nothing But whatever was the mo-
tive of that panic, If it had a motive,
there is absolutely no question of the
fact that it has been followed by the
most vicious and gigantic bear cam
paign that the gamblers on the ex-
changes have ever been able to inaug-
urate.
July is the month to which most of
the farmers have been looking for a
change in the tide. 1t was understood
by them that most of the spinners, es-
pecially the foreigners. had cotton
enough to last them until the first or
middle Of June and there was a gen.
eral feeling that July would witness a
change in the situation. The bear
spectators therefore, devoted their at
tention principally to that month, SELL
ing millions and millions of bales
The price of contracts was steadily
and surely beaten down: but because
the holders stood firm, the price Of
spots continued somewhat reluctant,
remaining something like ten dollars
q bale behind.
But right now it looks as if the sit
uation has begun to take a change.
The spinnerS who have been remaining
out of the market in order to let the
bears have full swing, are beginning to
realize that their stocks are running
short in dead earnest and contracts
won't spin. The bears have sold more
cotton than can be delivered. There Is
not enough cotton in existence to fill
their contracts, and that is the secret
of the present squeeze.
While the situation is intensely in
tereSting to holders of cotton, 1t is very
we'll for them not to become excited
at this stage. Though the bear spec
ulators and the spinners are growing
uneasy, they are not whipped yet. A
few hundred thousand bales of cotton
on the market would make the spin
ners easier for some time, and relieve
the upward tendency of the market
But if the spot holders will just con-
tinue to stand firm for a month or two
longer up to July itself, they will prob
ably find there a complete victory.