The Birmingham age-herald., 1911-07-26
NEW CROP COTTON LOSES S2 A BALE Bottom Drops Out of Cot
 ton Market QUOTATIONS ARE LOW 'f
In Few Weeks Old Crop Has De- 10 clined $12.50 Bale and New
 Crop Loses FPS Points, ~ or $11.40

| smash of the season in the cotton mar ket came today without any warning. The loss on the new crop months. the principal object of attack by the boar side. amounted to exactly 40 points or g bale. August, in which all that Is left of the old crop interest is cen- tered, lost 30 points, or $1.50 a bale.
 The decline was caused by heavy short selling, which hardly let up for a minute during the day. Under the pressure the market gave ground stead fly and on the way down stop-loss or ders from those traders who had gone long in anticipation Of the now long delayed reaction, were constanS' reached. This swelled the selling. The markets had next to no support and what buying orders there were came from shorts who wanted to realize profits.
 The decline began in Liverpool and that market was so much under ex- pectations on the opening here that initial prices were to 10 points down. Without anything that looked like a recovery or reaction of consequence prices fell until on the actual trading they were 30 to 40 points under yes terday's final quotations. The close was IA to 45 points down, bids and offers considered.
 A turn for the worse in trade pros poets in England and bearish expec- tations in connection with the August report on the condition of the Amer ican crop were the chief reasons for the heavy selling.
 It was a day of short selling in the market. Rumor said that one of the bull leaders who recently let go huge line of long cotton was the best seller of the day and that he was accumu- lating a line of short cotton that would rival his recent holdings on the other side of the market
 Strong Short Selling
 Short selling has been very free of late, but in no such volume as it was today. The gossip of the floor was all bearish. In the early; trading the feature of the news was the extremely pess'rnistic claims made by English traders. They cabled over that the position of cotton was being affected by English politics, by impending strikes and by the failure of the monsoon, which was causing fear of another famine in India. One cable gram stated that Manchester was par-. alyzed through fear that the poor mon- soon would result in wholesale cancella- tion of orders for cloths and yarns OfYi- cial cable messages from the Manchester market brought out the claim that no business was doing.
 This was the last day in the period to be considered in the report on condi- tion which the government will make on August and bearish gossip in connec- tion with this report intensified the effect Of the poor trade accounts from the other side. For some time it has been claimed by the majority of traders, and espe- cially those who have been working for a reaction, that the coming condition re- port would show a falling off compared with last month, but today one of the private crop reports from the bureaus came out with report, or at least rumor, said that such report had been made, showing a gain in condition for the month of three-tenths of one point This fitted in very well with good crop reports from
 
 stopped all talk of a reaction.
 At times selling was heavy by outside longs, who came into the market on the reaction. The many circular writers to- day claimed in their letters to customers that under present conditions no reac- ton would be possible above Il cents for the new crop Bulls however, contended that the market was dangerously over sold and liable to an upheaval at any moment.
 Quotations on cotton are now surpris- ingly cheap when compared with the price prevailing only a few weeks ago. From the highest of the season there has been drop of 26 points, over PIE cents a pound, or over SIP. 50 a bale on the July delivery, the position that the bull clique at one time threatened to push up to 20 cents. On the new crop positions the decline has been almost as great, October hav- ing lost 2S points or 40 bale.
 New York, July 25.-Notwithstand- ing the big declines of the past week or so, the cotton market became sen sationally weak again today with all deliveries except July making new low records for the season under renewal of liquidation and general selling in- spired by unfavorable foreign trade advices and increasing confidence in an August bureau report foreshadow- ing an enormous crop next season. The new crop positions were the weakest. selling about 35 to 40 points under the closing figures of last night with January contracts touching 11.40c. or decline of $11.s0 per bale, from the high records of last month, while Au- gust broke to 1240c.
 Reports that the Indian monsoon had broken unfavorably and that the pos sibility of famine in India had ex- erted a very unfavorable influence on the Manchester market inspired a good deal of selling, while the market was also influenced by runners for the com ing report of the National Ginners' as- sociation would make the condition of inc crop about 20 per cent, comparing 2rfth the government report of Ss.2 per Sent last month.
 F There was heavy covering below i1L cents for the new crop, but the kna TX ct closed weak and at practically 4he lowest on new crop months, which &howed losses of from 35 to 40 points, Ib,d crop positions closed unchanged to f9 points lower. ~ DIRECT VOTE NOT DEAD < ,[ <
 washington, July 25.-After, .