Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-08-04
DOWNFALL OF COTTON BULLS.
Many Men Have Tried to Corner the
Market, But Nature Has Fooled
Thenn

Market, But Nature Has Foolee
Thorn.
Various big bulls have dominated the
cotton market for the last ten years
Conditions have favored them nearly
every season. They have manipulated
prices and mad manufacturers almost
at their mercy. They engineered cor
ners and squeeZes, tied up immense
stocks Of raw material and played hot
with the textile industry. incidentally
the whole body of the people has had
to pay the bill, for the price Of cotton
goods has increased 100 per cent OF
more. There were many indications
that the reign of the cotton bulls would
be continued through this year. On
account Of the high prices for raw cot
ton in recent years the acreage planted
this season was immense-the biggest
on record. The crop got moderate
start and then got various reverses. II
rained too much in the Atlantic part
of the cotton belt, and 1t did not rain
at all in Texas, where nearly third
Of the crop Is grown. The storehouses
of the world were bare of cotton, and
a short crop meant disaster. Specula-
tive bulls fatten on disaster, and there
was much rejoicing in their ranks
Every day added to the strength and
security Of their position until about
six weeks ago. Then there was one OF
those reverses that come about once In
a generation in the cotton country. II
sprinkled in the southwest. Next II
showered. Later on 1t rained. The
parched earth drank up the moisture
and it was grateful, but the rain only
sank q short distance into the soil
Next day 1t rained some more, and the
day after it rained again. There have
been fine, generous, glorious rains at
intervals since. All that was lost or
seemingly lost In the cultivation and
development of the crop was recovered
and more, too. Cotton flourished ia
mously.
While 1t rained in Texas 1t cleared
in the Atlantic states. The fields dried
out, the weeds were checked and the
plant grew gloriously. So 1t has con-
tinued ever since. Within month or
six weeks there has been such a mar
velous change that from threatened
disaster now the prospect Is magnifi-
cent. Conditions are ideal. The great
est cotton crop the world ever has
known is assured. With this change
in conditions the price Of spots and fu-
lures have declined rapidly. Within q
month the shrinkage has been 175
points-nearly SO bale from the top
price. And with the decline there have
been more dethroning Of cotton kings
than the market has seen In a score OF
years.
The cotton crop Of this year Is esti-
mated conservatively at between a.
900, 900 and 15,O00,O 900 bales-some say
100000. Taking the lower estimate,
and figuring on the basis of 11a cents a
pound, this means that the value of the
cotton crop this year will amount to
about $S50,O0O,000. The value of the
by -products-cotton seed, linters, etc.
will reach $175,OO0,O00 more. The as
founding total Is more than a billion
dollars. The goods that will be man
ufactured from this years cotton crop
will be worth more than three thou
sand millions Of dollars.
This huge crop Is of immense i'm
portance not only to the United States,
but to all the world. 1t means that the
cotton spinners here and abroad will
that has prevailed as long. 1t means
that the cotton spinners here and
abroad will be retarded no longer by
the stringency that has prevailed sc
long. 1t means that the finan-
cial equilibrium Of the country
will be restored. Cotton sells for
gold Our exports of cotton are what
maintain our supremacy and a favor
able balance Of trade with Europe
Cotton diffuses more actual money
than, perhaps, any other product Of the
earth. This unprecedented crop means
a great deal to the railroads, the mer-
chants and the manufacturers, south
and north. 1t means the larger buy
ing of commodities. It's ultimate effect
means the free interchange Of many
billions of dollars in all the markets
of the world.
Among the most picturesque Of the
figures that have dominated the cotton
market for so long, but are now In
eclipse is Eugene G. Scales. He came
from north Texas. He made and lost
two fortunes before he piled up his
present one. Twice before he has been
a millionaire, and twice before he has
been fiat broke. In 1908 he was practi-
cally penniless, with the exception oi
a heavy mortgaged ranch near San
Antonio, Tex, and n diamond stud
worth about $400. He pawned this
stud in Dallas for $3.50 in 1908. After
paying a few bills and his railroad
fare to Shreveport, La, he had casn
capital of 5000. With this sum he
started in to play the wheat market In
the office Of his cousin, s. G. Harmon
Scales was a friend Of Patten, the one
time wheat king, who was running a
deal in May wheat then, and the latter
helped him with information that en-
abled him to run his 5000 into about ~
times that much in a few days. Then
cotton broke to 81 cents, and Scales
turned his attention to that commodity
He bought and bought and bought
The market advanced almost uninter-
ruptedly during the winter OF l9O8-9'
and Scales went to New Orleans and
began operating from there on an ex-
tensive scale. Later he came to New
York with a line Of about $4,000 bales
He kept on buying as the market ad-
vanced. The first Of this year he was
credited with having amassed more
than $4,000, 900 in paper profits and In
contracts that he had cashed in. He
was nipped in the big break In jan
uary, which halted his progress mo-
mentarily The recent decline Is SAID