The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-11-09
(By the Associated Press.

10y Inc ASSOCIbLCu IItOS.J
New York, Nov. 5.-The sudden
decline in the cotton market on
Thursday came to many like a flash
out of the clear sky. To others after
an almost Uninterrupted advance Of
SIS a bale a set back of $3.50 to So,
such as occurred then. was no more
than natural. Patten and other in
.terests are supposed to hav reduced
their holdings If they are not actually
out of the market. Wall Street have
been heavy sellers. So have the rank
and file of cotton traders. The mar
ket had become heavily overbought
and when bulls withdrew their sup
port as they did on Thursday the
price came down with startling sud
denneSS. Vigorous hammering by
car leaders helped to bring it about
The net decline for the week is COM
paratively moderate but bears pre-
dict that from now on there will be
a gradual sagging of prices to a point
where the Primers will be ind led to
take hold freely. Foreign mills have
bought heavily this season but the
American spinner has for the most
part held aloof. AS a rule he claims
that he could not buy the raw nate
rial at existing prices and sell his
goods at a profit Therefore he either
abstains altogether from buying or
else bought as little as possible. Also
there has been a steady spread Of the
movement to reduce the output Of
cotton goods SO many hours a day or
so many days a week.
Of late the spot markets have
shown less snap, less activity and
strength. L~iverpoOl's spot sales have
suddenly dropped to a very small
total daily The New York stock is
steadily increasing as cotton can be
brought from the South at a profit.
Crop news has been rather more
cheerful. The top crop of Texas and
some other states may turn cut to
possible. Over election lay there was
very heavy selling supposedly by Pat
ten and other interests in New Or
leans in Liverpool. The market was
nervous IN Wednesday and in the
doldrums on Thursday. Yet bulls be-
points in a day is no valid argument
against the proposition that sooner
or later prices must mount to a very
much higher level. In the Sully year
when the price vas around IL cents
and above there were frequent set
backs Of 40 points or more in a day.
yet the price ultimately reached 1875
cents. The exports are on a very
large scale and spinners' takings for
the season despite the high prices rul-
Ing show a considerable increase over
those for the same period last season.
ROoA Ao~ oSSA yin ~ lI4ul-
date straddles. At times both Ameri-
can and foreign s%pinners have been
buyers of futures here. Bullish gin
nerS reports are expected from the
National Ginners' Association and the
census bureau, the latter on Monday.
It is commended that the South has
sold cotton to the amount Of $780,
100000 and is in a position to fight a
decline and is likely to do SO. Crop
estimates from various sources have
ranged from 10, OOO,O 900 to 1000, 900
bales while bulls refuse to listen to
any estimates of the worlds consump-
ton Of American cotton of less than
100000 to 13,5OO,0OO bales. But
some conservative people are glad to
see some reaction in the market and
deprecate wild and dangerous specu-
atdons which they complain disorgan-
TIE the worlds cotton trade. At any
rate IT there is to be an advance they
would like to see it occur gradually
so that the trade can have a chance
to adapt itself to the new level of
values.