The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-11-06
SUDDEN DECLINE
IS BIG SURPRISE
Like Flash from Clear Sky In
Gotten Market
OTHERS EXPECTED IT
Steady Advance of SIS Per Bale Was
Not Expected to continue-Patten
May Be Out Of
the Market.
OTHERS EXPECTED

New York, November 5.-The sudden
decline in the cotton market on Thurs
day came to many like a flash out of a
clear sky. To others, after an almost
uninterrupted advance of SIS bale, a
setback of 81. 80 to 49, such as occurred
then was no more tsan natural. Patten
and other interests Gre supposed to have
reduced their holdings, if they are not
actually out of the market Wall street
houses have been heavy sellers. So have
the rank and file of cotton traders. The
market had become heavily overbought
and when bulls withdrew their support as
they did on Thursday the price came
down with a startling suddenness. Wig
orous hammering by the bears helped to
hurry along the decline.
The break for the week is comparative
ly moderate, but the bears now predict
that there will be a gradual sagging of
prices until point is reached where
spinners can be induced to take hold.
Foreign spinners have bought freely so
far, but the American spinner has held
off, As a rule he claims that he could
not buy the raw material at existing
Therefore he abstains altogether from
buying, or else buys as little as possible.
Also there has been steady spread OF
the movement to reduce the output of
cotton goods so many hours day or
SO many days in a week.
OF late the spot markets have shown
less snap less activity and strength.
Biverpool'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 out to be
larger than at one time seemed pos
sible.
Over election day there was very heavy
selling, supposedly by Patten and other
interests In New Orleans and Liverpool.
The market was nervous on Wednesday
and in the doldruIns on Thursday Yet
bulls believe that even a setback of 90 to
50 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 prices was
around u cents and above there were
frequent setbacks of 40 points Or more
in a day, yet the price ultimately reached
17.55 cents. The exports are on a very
large scale and spinners' tal1ings for the
season, despite the high prices ruling,
show considerable increase over those
for the same period last season. Liver
pool has been buying to llquidate strad-
dies. At times both American and for
eign spinners have been buyers of fu-
lures here.
Bullish ginners' reports are expected
from the National Ginners association
and the census bureau. the latter on Mon
day 1t is contended that the south has
sold cotton to the amount of $3.50, 000, 900
and is in a position to fight decline and
is likely to do so. Crop estimates from
various sources have ranged from 10000,
COO to 100000 bales, while bulls refuse
TO listen to any estimates of the worlds
consumption of American cotton of less
than 100000 to 13,5OO,OO0 bales. But some
conservative people are glad to see some
reaction in the market and deprecate wild
and dangerous speeulations which they
complain disorganize the worlds cotton
trade.
At any rate, If here is to be an adj
vance they would like to see it occur
gradually, 81 that the trade can have
chance to edapt itself to the new level of
values.