New-York tribune., 1910-08-30
COTTON AT 70 CENTS;
PIT IN FRENZY ON RISE
Southern Staple Reaches Highest
Price Since 1873, When Ii
Touched 213a.
CHECKED BY BULL LEADER
Reaction Follows Offer Of 100,-
600 Bales by W. P Brown
Predicts Biggest Scarcity
Since Civil War.

Ary,g led II the local cotton pit TIE OuIlS
forced the price Of cotton yesterday up
70 20 cents e pound. the figure James A
Parten and the other bull leaders pre-
6so-ed i would reach when they began
--ei- campaign for higher prices a year
age.
-~-,s & the highest price At which cot
--r ras sold here since 1873. when II
touched o1As cents, and is nearly hNe
cents pound above the top figure Of the
S,Irv YEAR. 1904. when the former cot
Tn king" forced the price Of the staple
ID 10 ~ cents a pound
The excitement in the cotton pit was
confined ro the August option, Whlch
--z re only one 70 reach the -p-cent
-, -f-a other months showing very lit
-. .-+a-g4 from Saturdays close Sep
-s--be- lie next highest month, sold at
743q cents pound
August opened at Il cents. u points
ero--a saturdays close. and continued to
.5--s--a n sensational fashion until 1t
.-..~be5 90 cents. which il did within
z--,-z--Ars Of an hour from the open
- - The market This was a gain OF
o-S minis. OF SO - a bale. from the
80 =p-,-es on saturday. and was &C
,,-,--fs-ed in the face Of comparatively
,,.-- --s5f7g. the total turnover Of Au-
ens- cotton for the day being estlnla1ed
g only 5000 bales
The price would probably have gone
considerably above 20 cents had II not
resn <7- the fact that when il reached
-lz- =rr--e " P Brown. who has sue
ozA5e5 lanes 4 Patten as the leader OF
-4e r..1 pa--v. jumped into the pit and
offered all or any part Of 100000 bales
a. that price.
Price Reacts Two Points
This -4- only stopped the advance. but
brought about 4 reaction Of tVo points
--a action II the bull leader being taken
- mean hat The bulls who are believed
- have had virtually all the August cot
IN n sight. we-e willing 70 allow the
shorts 70 settle al that figure or pos
s-rfv slightly under il, and the Tranuc
raa-s 10 whose attempts 70 cover their
.-7z1Isr. contracts the advance was gen
e~z77z sr-riI,51reS. Gained down a Little.
~ sare for delivery on these con
tracts expires 81 noon Tomorrow. whlch
T-77er The circumstances there was moth
trg for them 70 do but 20 60 into the
nj and cover a. any price. and as the
bulls had cornered all the August cotton,
me had 10 meet whatever price the
buI leaders considered proper
II other words. they were locked in,
With no way Of getting out except
through the means offered by their enc
mics. The bulls. which in this instance
appeared 10 be by paying 20 cents
pound Tor cotton wh--h had cost the
bulls on al average Of about i cents
pound
Thac most OF the purchases were
made by the bears was generally ad-
-nilred On the floor. Most Of the selling
cane from the bull leaders, Brown,
AaEre and Scales. who were said TO
have got I'd Of from lO.ro0 10 1900
ha-eS on the advance. The exact extent
OF he short interest could not be learned.
lur good judges said that il was not as
.srge as has been commonly believed.
probably not more than 1900 bales at
The outside
Bull Ciique's Holdings
Z has been the common belief IN the
trade that the bull clique was possessed
O. upward OF 100000 bales OF August
cotton, and that its holdings were al
least that amount was shown by AIr
Browns offer 10 sell le01eO bales at 20
cents 9 pound
So fsr this month 10000 bales Of cot
ton have been delivered under contract
Try The shorts How much more they
haze 70 deliver viii not be known until
norE lo-morrow. when the time for de-
livery q the august option expires.
Z al the shorts did not cover yester-
Gag. hui held of IN the hope OF arrang-
-nE private settlement. the bulls viii
% II q position 70 force the price Of the
August option still higher to-day. It
was stated positively by representatives
Of the huil leaders after the close Of the
market yesterday that there would be no
private settlement and that the shorts
Tolld have 10 settle across the ring
That there was still an outstanding
s1crr interest was indicated by the fact
ths- after the decline Of , points fol-
loving Mr. Browns offer Of 10000 bales
a. % cents a pound buyers Of August in
tne late afternoon trading again ran the
price of that option back TO 1886, or
within 10 points Of the high figure of the
day. Il closed At 30. a net gain Of
~ points. or S14 ~ bale for the day
Dealings on Small Scale.
Under ordinary circumstances such A /
Tremendous advance in the price OF any
On option would have had considerable
influence on the other options and Gre
ated s. hat Is known as d runaway mar
aet' That such was no1 the case yes
terday was attributed 10 the fact that
TIE volume of transactions was com
parauvely small The trade seemed to
9e q the opinion that with The close o1
NE present month prices on the Cotton
+-zehange wsLld be OF more normal .
'haracter although there was some eE-
-'e@lation THAI the bull crowd would al
tempe something of demonstration
-steT N the September option
The leaders in the bull movement
Mich began last March and IS oeLeNed
% have practically eliminated with yes
S7fcaT's sensational advance III me Az
s2s- r-g-so-7 ~ Y II Brown rank