The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-07-04
COTTON BULLETIN
OPENS SOME EYES
WRITER SAYS PEOPLE OF THE
SOUTH ARE LARGELY RESPON-
SiBLE FOR FACT THAT PRICE is
NOT STILL HIGHER.

J. A. Caldwell. one of the best-known
men in cotton trade circles, writes as
follows:
To the Editor of The Age Herald:
Yesterdays cotton market proved con-
clusively that the trade begins to realize
We are facing a disaster.
The bureau published at noon was a
sensation that the world was not look
ing for. 1t brought about an immediate
advance OF nearly So a bale, which was
held to the close and both our markets
finished at the top, while Liverpool made
a full response. remaining open until 6
o'clock in order to get action there on
the bureau
This was most unusual thing for Liv-
erpool to do. and 1t shows that the entire
cotton world is alarmed over the situa-
ton.
Early in the day Liverpool cabled that
Manchester was reported going on short
time. This may have a bullsh signifi-
canoe. instead of bearish one, as evil
IDENTIFY it was intended. Maybe Manches-
ter was reported going on short time. This
of bearish one as evidently it was in
tended. Maybe Manchester realizes they
cannot obtain the cotton to run them
until the new crop is available, and in
stead of being a depressing factor this
may be the beginning of a sharp bid for
the balance of the unsold crop between
the English and American spinners. There
is not thought to be a very large spec
ulative short interest outstanding, but
there Is probably an extensive hedge in
terest. Cotton has been relatively too
cheap, as compared with other farm COM
modities. This Is due to a combination
of conditions that the southern farmers
are almost entirely responsible for. They
have allowed lot of mugwump politi-
clans to enact laws prohibiting the post
ing of quotations on their own product,
making it in some states in the south al
most criminal act to deal in this COM
modify. BY reason of this mosaic law
they have virtually destroyed an enor-
nous buying power.
Had not this law been in effect through
out very large portion of the cotton
belt. today we would see cotton IA cents
instead of II. The reports for the past
three weeks have been alarming, and
close students of the market could not
help but believe the bureau would be an
extremely bullish affair; yet the most
sanguine bulls did not dream it would
be in the neighborhood of 746. We must
have ideal weather from now on to make
a crop of 100000 bales Any further de-
tloaa a.
Inc to the worlds spinners.
We will no doubt have setbacks from
time to time in the market, but 1t has
all the earmarks of an old-time bull mar
ket.
None Of the big professionals are
against the market and the only thing
can see to argue in favor of temporary
declines is that there are too many peo-
pie committed to the long side; some
of them predicting 10 and 2o-cent cot
ton. We may reach the former figure,
after process of reimbursement in the va
rious departments of the cotton goods
trade. but 20-cent cotton is dream
Sully will tell everybody that
On good swells from the 12A level
would be disposed to cash in and count
my chips for a spell.
]. A. CALDWELL
Birmingham, July 3.