The Washington herald., 1909-03-30
LOCAL FINANCIAL GOSSIP

AROUND the turn OF the year cotton was
above 10 cents a pound IN the speculative
market. and predictions were freely made
that the price would reach 11lz or y
cents before the new crop would be
picked. Speculative cotton is now just
above 9 cents. the October option having
been down TO cents within two weeks
The market is very disappointing TO bulls.
and offers no opening for the bears. For
weeks il has held at the dead level OF s5s
cents on the average. and refuses TO
bulge from that position.
The chief cause for this dull market is
to be found in the large supplies OF raw
cotton in the hands OF splnners, storage
companies, and spot holders Back OF
this Is the uncertain amount OF cotton
which has not come into sight. which
according TO the recent government re-
port. is Of considerable volume. In addi-
ton to this large supply OF cotton in sight
and coming into sight Is the fact that
there Is an overproduction in cotton
Goods and yarns in all the mills OF the
country. JObbers and wholesale houses
are buying cotton goods on the hand-to-
mouth basis. and the mills in New Eng
land and the South have on hand a great
volume or goods unsold. which they are
waiting 70 market when business shall
revive, as IL is expected 10 do when the
character OF the tariff bin is better
known than at present.
Yesterday the statement emanated
from the international Federation OF
Master Spinners that the holdings OF raw
cotton in the hands Of American spinners
amounts TO 10000 bales in excess OF
last year. This shows that the mills have
been tempted into buying largely through
the cheap prices that have prevailed
since the middle Of February and the
nope OF renewed business activity IA the
early summer months
Little more than a week ago the gov
eminent report on cotton showed gin
nings to March / of 13.40S. Sl1 bales. in
GLIDING linters. On this basis the com
mercial crop should amount 10 the 10
$4,000 bales OF 1904 and 1905, or the l3.-
$1,000 bales OF the year 1916 and 1867, If
II does not exceed that amount
Another interesting fact brought to light
is that the "A. 700. 000-odd bales OF cotton
produced IN the last two years lust about
equals the consumption by American
mills and yet cotton sells 81 ST the
speculative centers at 81 cents.
These facts and conditions leave small
hope for any large advance In cotton In
the near future only small acreage or
storm damage to the standing crop IN
the growing period can greatly affect the
situation. and there is only small chance
or either. So long as the Southern plant
er knows that there Is a sure market Cor
more than 100000 bales, he viii not be
much tempted TO decrease the output In
fact, the South Is raising only about half
the cotton il IS capable OF raising with
improved agricultural methods and the
use OF available planting ground.
Trading on the local stock exchange yes
terday was in very small volume and OF
no striking significance. Stocks sold In
driblets at current prices. and the market
was very quiet.
The new Communication rate instituted
BY the Washington. Baltimore and An
napOlis Railroad Company for the spring
and summer months. promises some in
teresting developments IN the way OF
rate cutting between the electric and
steam roads between here and Balu-
more.
Lem Towers. jr.. who has for several
years been secretary Of the Columbia
Fire Insurance Company. IS about 20
open an insurance Office at 1921 F street
William Z. Lewis. representative in
Washington Of Lawrence BarnUm & Co..
Of New York. has become a member or
the firm, and viii continue TO represent
the house in Washington.