The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1909-11-02
COTTON JUMPS
Advanced IS to Sc Per Bale During
he Past Week.
THE SOUTH BENEFITED

THE SOUTH BENEFITED
Conviction Is Growing That Crop
vim Be Short and Prices Will Go
Yet Higher-Ccnsiderable Guess
ing and Speculation as TO the
Final Results.
The past week was wild week
in cotton, with jump of IS to Sc
q bale, says dispatch from New
York. This,iwas based on a growing
conviction that it is a short crop
and that there is nothing for it but
much higher prices before the sea-
son is ended. Whether this advance
will culminate by the end Of the
calendar year is. of course, a mat
ter for the future to determine, but
bulls are talking Of crop only TO-
100000 to l1,500,OO0, though it is
not clear how the consumption can
reach such figure unless the pres
ent figures are too low. Only l.
100000 bales of American cotton
were carried over from last season,
but while there may be disagree
ment as to the precise size of the
crop and the consumption, the be-
lief is almost universal that the
yield is at any rate only moderate
and inadequate TO the needs of the
worlds cotton trade. 1t is argued,
too, that ifnthe cotton crop OF the
South is to be worth this year some
$500, 100000, the purchasing pow
er of the South will be greatly in
creased and with the high prices
which Western farmers are obtaining
for their grain il will greatly stimu-
Late the use6of cotton goods and en-
able manufacturers to obtain prices
more than commensurate with, the
high prices OF raw material.
There areathose who think a new
era of-cotton values has set in and
that there is not likely to-. be much
permanent decline in the price 'un-
til there is, a radical increase in
the production through an increased
cultivation of a vast area at the
Southwest suitable for cotton cul-
ture.
The story is that Patten, Gates,
Hayne, Scales. Brown and othergin-l
terests have been sbig buyers and
though taking profits from time to
time still remain VERY bull lish4 4Nin
their convictions. Many other opere
ators in Chicago, New Orleans, Mem
pills, Wall street and Liverpool have
also bought. The Waldorf-Astoria
contingent and metal trades also, it
appears, still have been buying. Cot
ton Is one of the chief topics, rival
ing steel, atSthe clubs and big hotels.
Exports have been large cotton
goods are active and rising and
Liverpool seraddlers, in some cases
at least. appear to have got hold of
the hot end Of the poker. In other
words, it is said there was a very
large amount of this arbitrage busi-
ness originally done by selling in
New York and buying in Liverpool.
The liquidation of such atraddies
By buying here and selling in Liver
pool explains in part the strength
OF prices. and the sluggishness or
weakness of Liverpool.
On the other hand it is feared
that this speculation is too much of
wild-fre affair. There is said to
be less pyramiding than there was
last spring and summer, but for all
that the market is by many con-
sidered dangerous. They seriously
doubt whether the recent advance Is
justified. The receipts at the ports
are large and the weekly movement
into sight suggests to some the idea
that the crop is being underestimate
ed. The stock here is rapidly in
creasing. Though the movement to
curtail production has thus far fail
ed in the North of any very sub
stantial results, some 160 Georgia
mills have agreed to reduce pro-
duction and it is argued that it is
only question of time, if prices
continue to advance, when wide
spread curtailment will be imper-
ative. It is urged, too. that after
an advance within week or some
thing like 100 to l25 points a sharp
reaction is to be expected at al
most any time. For the past few
days, however, there was more big
buying, followed by a rout of the
bears and the Liverpool arbitrasers,
and a sharp rise in prices.