The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-12-23
COTTON PRICES ADVANCED.
REGISTERED NET GAINS M
SPITE ENORMOUS RECEIPTS
Crop Is Good, Prices Low and No.
mand is Expected to be Fully Equal
To Supply.

New York, Dec. 1S.-Enormous re-
ceipts Of cotton have at times had
depressing effect, yet it Is a fact ar
once singular and significant that. de-
spite the increased business Of a crop
movement unparalleled in the history
or cotton culture, prices actuaIlv
snow a small net advance for the
week. Probing for the causes of such
a phenomenon, for it is practically
that, they are to be found. first in
the enormous consumption; second, As
correlative Of this the recent very
heavy exports; third, the cheapness
OF the price, and, fourth, an overdo-
ing of the short side. There have been
TOO many bears in all sections of the
country, owing to the mammoth re-
ceipts. But the price Is relatively
low and this must be numbered with
the most important Of the bullish fac
tors. Then again the quality lie ad-
mittedly superior.
Wall street has been .buying, un.
dismayed by the high receipts, weak
ening spot markets the pressure of
Southern hedges and at times a pres
sure also Of foreign selling. 1t has
ignored reports Of slackening business
In this country, Of poor trade on the
continent Of Europe, OF a diminished
Lancashire business and an attempt
In India to boycott British goods In
retaliation for the sedition laws deal
Ing with the unrest existing In that
part Of the British empire. 1t has
ignored reports that the ints- sight
movement by January Is Hhely to-
be larger than the previous high rec
ord, that OF the season of .. 1s04-06,.
when, according to cotton exchange.
reports, the crop was, 13,So4,00Ot
bales. 1t has paid no attention to.
private estimates of 1900. 600 to a.
100000 or to increasing stocks here
for liberal tenders on December CEN
| tracts or the talk 10 the effect that
the increasing New York stock must
inevitably have sooner or later a de-
pressing effect on near options even
Though December Of late has ranged
at premium OF from S7.to AZ points
| over January.
wall street had adhered tenacious
ly to the conviction that cotton is
cheap that 1909 is to be big year in
American business, in which the cot
ton industry is bound to share. that
spinners' takings will be well over
100000 bales. that the recent goy--
eminent estimate of 12,s0O, geo bales
however sharply attacked, was prac-
tically correct. that there rs a short
interest on foreign straddles here Of
anywhere from 100000 to 10000. 600
bales. that another big short interest
exists on Southern hedges and other
bear selling.
Meantime reports are being receiy-
ed that the spot markets are Begin
ming to resist any tendency towards
lower prices. The current price ;s
oo"h nearly. to the cost OF raising
cotton. Exhaustion of supplies is re-
ported in some parts of the cottont
country, and the weak" long interest
has been largely weeded out here
Straddles have been buying January. -
March and other months here against
sales across the water i'm securing
profits on recent widening of the
difference Of something like 81 a
bale.
Liverpool and Manchester have
"ithin day or two shown strong
er tone. Lancashire's trade is said to
be improving. Bears are nervous
about the census bureaus report on
the ginning to be issued on Monday
December 21. In other words, the
boot is on the other leg. Recently the,
market was overbought Now il
looks to many as though n were
oversold. Many Of the spinners' in
terests in this country are bnliish at
present prices and as intimated at
the outset the market shows n resist
ing power in the face OF extraordinary
receipts which occasions general re-
mark. The indifference of the ont
side public is a drawback. but one
house alone bought $4,000 bales Of
March and May today.