The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-04-23

most unfortunate that the government
should intervene in the effort to pro-
tect those who have sold beyond
their possession" Enthusiastically
said Lewis w. Parker president of
the American Cotton Manufacturers
Association, today, when asked con-
corning the action of the government
In ordering an investigation Of the al
legged pool to keep the price of cot
ton up.
'The Southern mills do not wish to
see a decline in the price Of cotton"
he continued, "and the stand Of the
government is unfair. Apparently, it
originated In Wall street on the part
OF the bears, who have beeen selling
to keep the price of cotton down,
and who, by this investigation, wish
to force Messrs. Hayne, Brown and
others to show their hands, to fiji
out their methods and their supply
cotton on hand, and the like. That
part of the press dispatches which
alluded to a contract of the 26th of
February, referred to an agreement
by the Southern mills to take care Of
the cotton rendered in New York. /
learned Of the action of Attorney
General Wickersham last night and
sent the following telegram to Sem
OF
Have just learned of action of
grand jury in New York, under ad-
vice Of Attorney General Wicker
sham. In reference to New York cot
ton exchange. The effect of this is
to assist the bears out of a dilemma
in selling cotton they did not have,
thus depressing the market. The ef-
fort of Southern mills has been to
sustain prices and to this end they
have agreed to take up cotton tend
cred in New York. There is nothing
unfair or illegal in their agreement
with Hayne and Brown, and 1 urge
you to protest against the use of the
governments power in forcing, at
this time. disclosure Of their plans
in the effort to make bear raid. See
Adamson of Georgia, who under
stands matters"
"The situation is this: AS known
throughout the season, the mills have
had a difficult job to get an adjust
ment of cotton goods to parity with
the prices of cotton. With the scar
city prevailing in cotton during the
present season, it Is difficult to say
what Is a fair price Of the commo-
dity; but from November on 1 think
1t has been recognized that probably
Is cents to the producer represented
that fair price. In November and
again in January those who were ad-
verse to the prevailing prices of the
commodity made concerted efforts
to break the market by selling in
large quantity, hoping and expecting
to be able to repurchase the cotton
at lower prices. Those thus selling
the market have oversold themselves,
and purchases have been made by
who are simply asking those who
have sold to deliver that which they
speculatively sold without having cot
ton to sell.
THE Southern mills do not want
to see a decline in the price of cotton,
for two reasons. In the first place, to
a considerable extent they have pur-
chased cotton in the belief that the
high prices prevailing during the fall
and winter were more or less justified
by the crop condition. In the second
place they regard it as evidently
problematical what will be the size of
the crop this year, and what should
be a legitimate price for cotton next
fall. On the exchange the prevailing
prices for fall cotton are now approx
imately II 1-2 cents; and, so far as
we can see, these prices should pre-
vail in the fall. If through the SELL
ing movement on the part Of bears
the prices for fall deliveries are ma
terially reduced, buyers of goods will
fix their estimate of the value of
goods on the basis of the reduced
prices of futures; whereas there is
every reason to believe that an alb
normal demand for cotton in the fall
will keep prices sustained for the
spot cotton and in all probability
above II 1-2 cents. even though the
crop be very large.
Under these circumstances, mas
much as the effect of constant sell
ing of the market by bears would
have constant tendency to reduce