The Birmingham age-herald., 1911-07-31
WEEK WAS ONE OF CROP IMPROVEMENT Cotton and Corn Belts Tn
 Good Condition ARE TOO MANY PROBES Wall Street Is Kept Agitated--New Orleans Cotton Market Was One
 Continued Slump of
 Prices
ARE TOO MANY PROBES
Nv RALPH EMERSON

passed, thus adding 10 the fonndatloh previously laid for better traae con
 ditions in the autumn. Coplus raihs have fallen in the great producing
 states, soaking almost entire the cot
 ton and corr belts, brightening up ma
 terially all late pasturaees, raising
 rivers in the west and south to the
 highest point in years and avertlns
 inc threatened water famine in leading cities.
 | Whatever response the security mar Ikets might have made to the better ment of crop conditions was prevented | by the decision of the interstate com
 meroe commission in the long ana
 short haul case, the excitement Tn l British home politics and the acute
 stage reached in the relations between Germany and other European powers | in the Moroccan question. Although the | concensus of opinion among interna . tional bankers was that the Moroccan dispute would finally be settled by compromise temporary war scares en- sued Which greatly unsettled Euro pean leading financial markets and caused more or less selling of stocks by the foreigners on each day of the
 week.
 The interstate commerce decision had special influence on the shares of the
 Hartman and Gould systems, as these properties are expected to bear the
 brunt of the loss of approximately S5, ,000 900 in gross earnings likely to
 be entailed by the reduced freight schedule. A fresh depressing influence
 near the end of the week was the proposed investigation of practically the whole money power of the finan-
 cial district under the auspices of the House of Representatives.
 Wall street is being surfeited with
 congressional investigations. So fas the effect of these has been chiefly to increase the short interest in stocks and intensity the bearish feeling. All this has placed the market in a good technical position for a rally when some of the clouds now hanging over 1t shall have passed away.
 The further collapse of the cotton speculation was an important feature of the week. The significance of this lies in the fact that it marks con- tinued and healthy progress in the re- adjustment of affairs in connection with the liquidation in comm modities. The fla vorable outlook of the growing crop,
 of course. was the impelling factor in the liquidation of speculative commit
 ments although the European war scare and the drouth in India were also fn- fiuences.
 Merchants have been induced 10 hold off in consequence of the heavy and rap | i'd fall in the staple and thus the adjust
 ruent between raw material and fabrics | is being delayed. Under the circumstances I it is only natural there should be some
 difficulty in reconciling the discordant
 views of these two interests but the solu-
 tion will come in time and then the cot
 ton mill industry will make a much | closer approach to normal conditions 1 than bac fot while
 | Although the decline in the grain mar.
 kets, which was temporarily checked at | intervals by the political lnsettlement | in Europe and the exaggerated reports )f | damage by rust in the spring wheat belt.
 have not been anything like that in cot | ton. it has, nevertheless, been attended
 with some interesting developments. Tlle
 most important of these is the fact that the price of wheat has been brought | within exporters limits, and larger | freight engagements have been made.
 From present indications the export
 movement for the current month will
 approximate S,OO0,0oO bushels. yery large | increase over last year. The potential l feature of this is that the United States | is likely to regain some of its lost pres
 tige as whe>r exporting country. The shipments of corn are also running much ahead of last year.
 Logical deductions from existing cir
 cLmstances are favorable both for the | internal and external trade of the country | before the close of 1911. In the last fis-
 cal year cotton exports aggregated 7SOo,- coo bales In the present fiscal year they are expected to reach, or to closely ap- proach 9,OOoO0 bales. As already out | lined, there is every prospect there will | DC a material increase in the exports of | breadstuffs at the same time our outgo ot manufactured goods is likely 70 be main
 tained on the present high basis and 1t
 may even go beyond that. Financiers,
 merchants and all identified with the leading idustrial interests of the country appreicate the current outlook, hence
 there is a growing cheerfuness appar-
 ent in practically all directions.
 Not much credit is attached 10 Wash ington activity as the source of all pres ent troubles.
 New Orleans. July 29-In the cotton
 market this week it was one continual
 slump, without any material reaction. Leaving out July, which became inactive toward the weekend, the net results of
 the week were a dcline of 115 to 123 points, This is one of the widest de- | clines seen in the cotton market in late
 years. The week opened at the highest
 and closed at the lowest. At the highest
 the list was 5 to r points under last
 weeks close. At the lowest, leaving out
 July, it was 177 to 122 points under. From | the highest to the lowest there was a. range of 100 to 109 points
 | The decline was principally the result | of aggressive and widespread short sell | ing, based on the belief in bumper crop and on the troubled politics in Europe. Whenever the market was inclined to re- act from the long decline, some fresh rumor or development in Europe would arise to send prices down again. This was
 the case on Thursday. With October cot ton selling at 11.41 the gist of Premier Asquith's speech on the Moroccan situ- ation to the house of commons was re- ceived by the market, and thereafter Oc- tober did not stop sagging until it landed
 at 10:s2, a decline of practically 8 a
 bale. Until this development the chances for a reaction seemed favorable. On the
 slump after the middle of the week much long cotton that had been purchased by
 reactionsts was thrown overheard. News from the growing crop was highly l favorable and estimates of the yield were 1 increased daily until the trade talked in l terms of 15,G00. .000 bales. At all times the | expectation of a bearish bureau report on
 condition this coming week was a press
 ure on the market. On the closing ses-
 sion bear pressure let up, but the market
 sagsed of its own weight. The gossip of | the day was that much of the selling was being done by mills who had bought
 hedges against their requirements for the coming season around 1S cents. It was claimed in some quarters that much | of this cotton was coming back on to the market.
 The heavy receipts of new cotton at
 tracted no little attention, and stimulated | pearish sentiment. Up to the end of the | week HonStnp had racaivad An7J hal 1as ot