The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-30
COTTON GOES UP
TO TWENTY CENTS
FURRY in August Deal on
New York Exchange,
BEARS ARE BADLY GORED
Three Days Before Settlement Bulls
Force Price from 1852 to 20 Cents
Pound-Movement II Professional
Due 10 short Covering-Other Flu
lures Are Little Affected.

New York. Aug 29-The bulls Of the
cotton market fastened their horns under
the very center Of the August deal to-day
and the upward heaye that followed
within an hour didn't stop until I'll
touched % cents pound. : toss Of
that heft has not happened since the
DAYS when reconstruction after the civil
war was putting fear into the cotton in
dustry. In 1873 it sold at 2l% and the
year before that at 279s. Even the Sully
boom I'm 1901 touched only l7.25, and that
was an extraordinary event
Those who found themselves IN the.
position OF having only three days in
which to cover their shorts for August
and without the necessary resources on
which 20 base those deliveries had TO
40 into the ring and buy cotton at what
ever the bulls wanted. When the upward
shooting hit its highest mark there was
so much feeling in the pit that the opera
tors OF this rise thought they had put
enough across 20 Justify their predic-
tons and had raked IN. incidently. a
good and plentiful sum, so II seemed
time 20 call a halt.
Turn Comes az 20.
After the bulls had permitted the big
and little bears TO tremble all they
wanted at the - cent figure. one OF the
bull operators went into the ring and
offered 10000 bales at this top-notch
price Then the descent began.
Very few persons could be found to-
day who would attribute the excitement
in cotton 20 anything but technical rea-
sons The crop didn't have a decidedly
intimate connection with the upheayal.
II was a deal which two New Orleans
men. enc man from Texas. James A.
Pa;ten. ana one or two others began last
/ March, and which has been dubbed the
bull clique
Patten avowed his intention OF draw
/ ing ont Of cotton al about the time that
the government interested itself in the
ways Of pools, but the others apparently
stuck Patten declared some time ago
| that he never had any agreement with
| the rest. and from the bun camp to-
day came an emphatic confirmation OF
/ the fact that he had not been instru-
mental in this summers option rises.
Bears Must Have Cotton.
] Just as soon as the market opened to-
day there was evidently the feeling that
J the bears had come 20 get their cotton.
/ Up sailed August on the first quotation
! 2 points abovea saturdays closing price
OF 1859 The FIRST trading. which was
limited to about . 90 bales. in the small
est lots that contracts recognize, was
al 1856 Then Il bounded 20 L. and q
/ few minutes later had worked itself ~
20 I7Ik From that time nothing could
stop H. until w p. Brown, the bull per
son. who had al least 10000 bales behind
him. according 10 his Offering. jumpeS
10 the ring and waved that amount unde
the noses Of any one who would buy
After that the bulls let 60 OF small
selling orders. and the price ducked {,
1874. and then IS. 1t buzzed around tina
point until toward the close Of the mar
ket. when there was another Hfting
slIghter this time. The last bid recorde,
was 1870
How much cotton was sold az the high
est point cannot be estimated, but Il wa
generally thought that the amount wa
comparatively small Most ideas SCENE,
20 Dee that little more than a few hun
dred bales had changed hands at thi
level
Futures Little Affected.
J One Of the incidents Of the days deal
iugs was that all the time that Their
We're doings in August very little wa
happening in the other options. Thes
months reflected the rise only from
to 6 points. quite early in the game, an
then they dipped under from 70 points
This took September from 1873 10 1422
October from 1886 70 l2S; Decembe
from 1913 10 1888. and January from IA
TO I496
When the days smoke had cleared ava
after the market closed. the bull opera
tors We're disposed 70 speak Of what ha
, happened as ancient history IL was IN
new crop that interested them And whe
they were asked how 1t was that the soa
occurred. Il appeared that such was IN
natural result OF the shorts hardihood i
, sticking to their positions In the face q
. what could hardly be averted. ANY est
mates OF what the bulls cleaned up 1
the deal weren't Forthcoming. Fran
Hayne. OF New Orleans. took a lttl
fling at the new crop
Expects Higher Prices.
There can't help being even highe
I. prices than these year from now" sal
he. The spinners have nearly 10000
bales less in their hands now than the
had a year ago ! hardly think that N
; new crop will he 100000 bales"
!, OF course the heaviest losers IN whs
happened to-day have been the bears. bl
I: a man who Is familiar with the bun pos
ton and has been In touch with their ca
culations. declared that this interest wa
b not centered in any one house. that n
/. bears were OF all sizes, and that the
I We're widely scattered one estimate Ia
; 1t that the bears and chief spot cotto
/, dealers had lost something like 5000. 0
a or 100000. AS a natural sequel to n
; days events came the declaration fro
5 many bull sources that there would I
no outside settling. Everything had to 5
= across the ring or not at ALL
on these August deliveries there al
l. only two days more on which contrac
may be fulfilled, and not two full days
that. At noon Wednesday the deal is owe
v Since last Friday when the bears d,
!. livered what IS believed to have bee
Il their last cotton-25.0oO bales--and whe
the level was 1907, the fuctuatlon 10 II
high mark Of yesterday morning was 3