The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-01-22
ACTIVITY IN COTTON
SUDDENLY RENEWED
News Of Settlement of Lancashire Mill Trouble
Used by Bull Interests to BID Up Prices
Attitude of Speculators

In crop of such unprecedcnt marn,.
! .nue would oa at least 100000 bales To
DC audcd Tor the total commercial crop
The Heavy Surplus.
| AS inc estimates on the worlds do.
nahd Tor cotton are still about 1900
GOO bales, this would leave IL surn,,,s
of fully 100000 bales to be taken
| care OF from tho past seasons crop
| aiohe. without considering the surplus
carried over in the worlds Visible
! Supply from the crop o. 100000 pro
! duccd In 1910. With American spiu-
hcrs still operating their mills on Inc
average OF but 40 per cent. of their
normal capacity from continued slow
'iaoe and uncertainty over the prob
able reduction OF at least so per cent
IN the tariff OF general cotton goods.
ana European political uncertainties
similarly AFFECTING the foreign spin
hefs trade situation. the prospects for
an advance in the price of cotton from
the oasis of, say, 10 cents is now re.
Sarded as wholly dependent upon the
production of much smaller Amcri-
can crop the coming season
Last years acreage is clieyed "a
nave been actually near $4,000. 600, in
stead of $1,000 900 acres. as estimated
pE the Agricultural Bureau 4 cam
palEn was inauSurated two months
ag" by certain leading spot and Wall
street interests. acting In conjunction
| WIN the leaders Of the farmers
unions throughout the South. That
was when cotton was declining 70
10 cents, and II seemed AS though
IT would go TO at least cents. But
since then the bullish manipulation in
inc option markets. carrying prices
last week up TO Q "a TO 10 cents, is
regarded as likely to defeat this move
ineht. With the predictions of ll-cent
cotton before the end of next month
now being telegraphed and circularized
ey inc bull leaders all over the South
the average Trainer Is likely to leave
all the reducing in the acreage to his
neiShoor. This would result in Nttlo
o. no curta!lment from last years
record hre akinG acreage. In that case
there would be little prospect Of the
new crop being cut down to 1900, DOT
oalcs without the aid of disastrous
weather
Effects OF Bullish Speculation.
thus with the prospect OF IL or ~
cent cotton again next summer de-
pending almost entirely on a heavy re.
auction i'll the acreage for Il much
smaller crop, the bullish activity end
manipulation in the contract markets
OF the past fortnight seems entirely
premature TO say the least rho price
has been driven high enough TO-. fhc
present trade situation. \ continue
ton Of bullish activity during the ncX,
lew weeks would probably not onlv
defeat the efforts TO induce the farm
srs 10 plant less cotton, but also
furnish an argument for those hold
ing 100000 bales OF the crop still on
! plantations and interior country towns
TO rush it forward on the markets.
| Hence IL appears while cotton was
! cheap at l-2@o cents. and that it
! was an "Hccllcn, purchase on that
! basis for either spinning or invest
ment puTposS, conditions prevailing nj
! present do not make il look so at 10
cents. with 50 much depending on the
! new crop being SO heavily cut down
| the c"mins season TO put the price
! NiE he.