The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-30
August Options Go to TWen-
ty Cents As Result Of
Bull Campaign
s65,OOO,OOO WORTH OF
THE STAPLE HANDLED
Only Two More Days Remain For the
shorts to Settle Up August
Contracts and Price May
Go Higher

New York. August 29.--August cotton
sold at 20 cents a pound in the Ne"
York cotton market today on urseh'
demand from speculative shorts VINO
had postponed covering until the las'
minute In the hope that the increasing
new crop movement might break the
control of the bull leaders. This price,
tho highest reached for cotton for any
delivery since the civil war, and eX-
ceeding by nearly 21s cents per pouno
the highest figures reached in the Ia
nous bull year OF 1903-1904, which, un-
til now, had stood as standard OF
comparison, was regarded by many as
the eliminating point of the bull move
ment in progress here for the last SIX
months during a season, when 1t ends
next Thursday, will go down as the
most spectacular in the annals OF tne
cotton trade since the war.
Not great many bales-perhaps
Enthusiastically changed hands on the
advance from 1852 cents, the closing
price of last week to 20 cents for Au-
gust this morning. at 20 cents an
offer from w. P. Brown, one of the
bull leaders, to sell 100000 bales,
checked the upward movement and X
was the general impression around the
ring that this was level fixed In the
open market as a basis for settlement
of the entire August interest remaining.
Later, however. this view of the sit
uation was somewhat shaken by the
fact that, after reacting from 20 cents
to 1920 cents under scattered selling
of a few hundred bales, August again
advanced on renewed buying by shorts,
touching 1890 cents in the afternoon.
or within 10 points of the high record
At the close August was quoted at 1875
cents bid, while new crop months
which had been very quiet all day,
were only to 9 points net higher
Southern Spots Quiet
In the local spot markets the prices
were marked up to 1875 cents, but
the southern spot markets showed no
sseorded being three eighths of a cent
at Savannah, showing the local char
acter of the extensive advance.
No one has attempted any accurate
figuring of the profits of the big bull
leaders. Brown, Eugene Scales and
Frank B. Hayne. all of whom are un-
der Indictment charged with conspiring
in restraint of trade in connection with
the bull pool. James A. Patten of
but In view of his repeated announce
ment of retirement he was not gener-
ally considered party to today's trans
actions.
In all the bull leaders have handled spot
cotton to the amount of 100000 bales
valued approximately at s65, 900, 900. But
the bulk of this has been shipped abroad
and Just how much of it has been act
uaily sold and how much of 1t may now
mi ot
is uncertain. Inasmuch, however as the
pulls have handled contracts for many
thousand bales in excess of those which
nave actually received cotton they have
undoubtedly taken large speculative prof
It's. no matter how their deal may turn
out when their last bale of spot cotton
has been sold. In the New York stock
they still own about 100000 bales
Rumors of Short Interest
Rumors circulated in the trade after
the close of business today was that
there was still a considerable August
short interest outstanding, which has un-
III noon Wednesday to cover. At that
hour trading In August is over, and with
1t ends all business in the old crops sea-
son of 1909-1910.
For the last three or four months the
bull campaign in the old crop, although
based chiefly on the fact that the crop
of 1910 was 100000 bales under normal
requirements, has had the encouragement
OF very favorable reports from the COM
Ing crop and predictions that the world
was facing a future inadequate supply
Naturally another short supply following
year of general curtailment and pro-
crastination in purchases of both raw
material and finished gods, might mean
anothN season of extremely high prices,
and this expectation has undoubtedly en-
couraged the bull leaders in their policy
OF carrying spot supplies forward into
the new season.
Crop Reports Confusing
Latterly reports concerning the pros
pect have been confusing. Owing to
drought in the southwest, deterioration
has been reported in that section, but
weather conditions over other parts of
the cotton belt since the first of August
have been considered much more favor
able and some reports have shown con-
siderable Improvement. The next report
of the government on condition will be
issued at noon next Friday. and. owing
to the conflicting nature of recent pri-
vate advces, opinions as to its showing
vary very largely.
1t is understood in the trade however,
that the operators who have gained such
prestige the bull side of the market
will now turn their attention to bulling
new crop months. They have issued
circular outlining their reasons for ex-
pecting higher prices, but this action on
their part was not unbiased was natur-
ally suggested, as any statement tending
to enhance the value of the new crop
would make a better market for wind
ing up the odds and ends of the old
and for disposing of the large supply
of spot cotton still supposed to remain
In their hands,
As preliminary to the deal, which
illuminated in such a sensational ad-
vance today, the bull leaders began TAX
ing up cotton on contract in March. BY
the end of March the price had advanced
to the 15-cent level. There was a period
of irreguarity during April and many
traders believed that so much cotton
would be delivered to the bulls in May
That 1t would break their hold on the
situation.
Bulls Take All Offers
At this time proceedings instituted by
the departm ent of justice encouraged
spectators on the short side but not
withstanding the fl ct thai more than
100000 bales of cotton were brought here
for delivery in May. the bulls took up
everything offered and by the end of
May contracts were still holding around
the 16-cent level. after having sold at