The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1910-09-02
FINISH OF BEARS In
The new YORK MARKET
Artificial Price-Depressing Influence
Will Garry Less Weight and the
Producer Will Collect Nearly Full
Value for His Cotton.

New Orleans, Sept. 2.-The bull
ampaign in cotton, insofar as the crop
of 1909 is concerned, came to an end
yesterday, but it's influence in the cot
ton markets will probably not soon
come to an end because its success
has caused the permanent downfall
of the rich and heretofore always sue
cessful and aggressive bear party at
New York. Hereafter artificial price
depressing influence will carry less
weight and, in the opinion of cotton
market leaders at New Orleans, the
producer will come nearer collecting
the full value of each and every pound
of cotton he sells than he has ever
done before.
Frank B. Hayne and w. P. Brown,
of New Orleans; E. G. Scales, South
ern man, and James A. Patten, of
Chicago, known as the Big Four, led
the bull forces to the biggest victory
that has ever been won for cotton.
Mr.. Patten, however, dropped out be-
fore the finish. Consequently, the f.
nal victory, that of sending the August
delivery to 20 cents, was won by
Southern men alone, and that, too, in
the face of the fercest opposition ever
made by the New York shorts.
What it Means to the South.
Here is what this bullish victory
means to the South and how it was
brought about.
Until a few years ago the farmers
We're producing in the aggregate more
cotton than the spindles required, sur
plus stocks were slowly accommodating,
but a period of low prices for raw
cotton during this time of accumula-
tion induced spinning mill expansion
on large scale. Then came increas-
ed consumption and through boil wee
vii ravages and bad weather a num-
Der of relatively small crops. This
condition opened the way for an i'm
provement in the average price at
which raw cotton might be sold.
In 1903 Messrs. Hayne, Brown,
Scales and others, realizing that arti-
fetal market conditions at New York
were giving speculative bears and,
through them, the spinners of the
world greater influence in price-mak-
ing than they were entitled to, went
to New York, bought cotton contracts
in the open market, called for the
cotton and then squeezed unprotected
shorts severely. This was the first
real jolt the New York bears had ever
received, and as a result the farmers
of the South received good prices for
most of the cotton they sold dur
ing many months thereafter.
Bull campaigns then became more
fashionable, but not until the spring
of 1909 did the big campaign which re-
suited in 20 cents for August, 1910
start.
AoVanta9es 10 Snort oeier.
1t appears that under the New York
contract, which has been condemned
by United States Commissioner of
Corporations Herbert Knox Smith,
many unwarranted advantages are
given to the shortt seller of
contracts. He, may deliver GER
tificated cotton in such a way
as to impose severe hardships on the
receiver and because of this most
men who in. the past have worked for
higher prices have sold out their con.
tracts at decline rather than take
tender cotton which they could not
readily SELL In this way depressing
the price became a practice. and the
producer Of cotton and Ills natural ~
Ily the speculative hull, we're ma1q
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