The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-11-03
STRONG BULL MARKET.
COTTON ADVANCED SIS TO Sc PER
BALE LAST WEEK.
Bulls Remained Confident That Crop
VIII be Short and Prices Will Go
Yet Higher--Many Spectators Say
Market Is Dangerous.

New York, Oct. 29.-It has been a
wild week In cotton. with a jump of
So to Sc a bale. This was 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 advice
will culminate by the end of the CAL
endar year is, Of course, a matter for
the future to determine, but bulls are
talking of crop of only 10000, 900 to
11,500,000 bales and a consumption
of 100000 to 13.500,00O, though it
Is not clear how the consumption can
reach such a figure unless the present
figures are too low. Only 100000
bales Of American cotton were carried
over from last season, but while there
may be a disagreement as to the pre-
else size of the crop and the consump-
ton. the belief is almost universal that
the yield is at any rate only moderate
and inadequate to the needs Of the
worlds cotton trade. It Is argued,
too, that If the cotton crop of the
South Is to be worth this year some
$S00,000,000, the purchasing power of
the South will be greatly increased
and with the high prices which Wes-
tern farmers are obtaining for their
grain 1t will greatly stimulate the use
OF cotton goods and enable manufac-
turers to obtain prices more than
commensurate with the high price Of
raw material.
There are those who think q new
era Of cotton values has set In and
that there Is not likely to be much
permanent decline in the price until
there is a radical increase in the pro-
duction through an increased cultiva-
tion Of vast area at the Southwest
suitable for cotton culture.
The story is that Patten, Gates,
Hayne, Scales, Brown and other in
terests have been big buyers and
though taking profits from time to
time still remain very bullish in their
convictions. Many other operators in
Chicago. New Orleans. Memphis, Wall
street and Liverpool have also bought.
The Waldrof-Astoria contingent and
metal trades also, it appears, still have
been buying. Cotton is one of the
chief topics, rivaling steel, at the clubs
and big hotels. Exports have been
large, cotton goods are active and ris-
ing and Liverpool straddlers in some
cases at least, appear to have got hold
of the hot end of the poker. In other
worlds, 1t Is said there was very
large amount of this arbitrage bust.
ness originally done by selling in New
York and buying in Liverpool. The
liquidation Of such straddles by buy
Ing here and selling in Liverpool ex-
plains 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 a wild
fire affair. There is said TO be less
pyramiding than there was last spring
and summer, but for all that the mar
ket is by many considered dangerous.
They seriously doubt whether the re-
cent advance is justified. The receipts
at the ports are large, and the heavy
movement into sight suggests to some
the Idea that the crop is being under
estimated. The stock here is rapidly
increasing. Though the movement to
curtail production has thus far failed
in the North of any very substantial
results, some 100 Georgia mills have
agreed to reduce production and it is
argued that it is only a question Of
ume' II prices continue to advance,
when widespread curtailment will be
imperative. 1t is urged, too that af-
ter an advance within week or
something like 100 to 1875 points a
sharp reaction is to be expected at al
most any time. Today, however,
there was more big buying. followed
by rout of the bears and the Liver
pool arbitraters, and sharp rise in
prices.