Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-10
COTTON GOSSIP

NEW YORK. July 1O.LAround the
opening there was some selling by ring
Spectators, but it was soon apparent
there was some cotton wanted from
strong sources and a wave OF short
covering followed, some of which was
said 10 come from Wall Street Con-
tracts were scarce. especially in Oc-
tober The buying. it is said, was based
on fear Of high temperatures in the
Southwestern belt and the continued
lax OF boll-weevil in Texas. Cables
from Liverpool stated that the strength
mere was caused by short covering In
lear OF high temperatures over the holi-
days. Some of the larger spot interests
were noticeable buyers of new crop.
Inc South was put down as selling. also
some of uptown crowd. The market is
narrow and is influenced easily either
way Just now. Agitation in Washing
ton Is having tendency to restrict
business and no serious change in
prices is looked for pending this legis-
lation.-Anderson
If the tax of so cents per bale be-
comes law the cost of hedging Will
ran upon the merchant or producer,
probably the latter, but as a matter Of
TACT, II is doubted if merchants would
be able TO hedge at all in any market
because the law eliminates the specu-
lator who is theoretically on the OppO-
site side of the hedge.
"A cost of 10 points to trade would
XIII speculation on American exchanges
and Kill straddle operations between
New York and Liverpool. The English
market without straddlers would not be
large enough to take care of American
hedging, so the only opportunity for a
merchant to have a hedge order exc
cuted would be when 1t meets another
hedge order the other way.
Any one familiar with future mar
kets know that these orders would sell
dom meet consequently. the law would
really XII all opportunity to hedge.
Such a situation would drive out all the
smaller merchants, leaving the business
in the hands of a few rich spot dealers
who would have the Southern producer
IN a merciless grip. "-Clevenburg
Reports of serious boH-weevil damage
IN Texas, together with timidty on the
part Of sellers because Of the local sit
uation, was responsible for the strength
Of the market yesterday.
McFadden and Gwathmey brokers
were the leading buyers yesterday,
mostly of October which feels the
threat Of depletion in stocks more
than any other month Baruch and
Wall Street covered some shorts
Sentiment is not unfriendly to the
market, traders figuring that with con-
tracts scarce any unfavorable reports
VIII cause a further advance.
Dallas wires: Panhandle and
south clear; central and east cloudy
numerous rains. Oklahoma-North and
west clear; balance cloudy; local rains"
NEW ORLEANS. July 1O-Hayward
4 Clark: The weather map is very
favorable; il shows cloudy over entire
belt, except fair in southern half of
Texas. Distinctly cooler in Oklahoma
and Arkansas, with fine rains in Arkan-
sas and parts of Tennessee. Some scat
EhnusnTC I'D loot -.
are for cloudy, with scattered showers
and cooler in the central belt.
Houston Tex, wires: First bale re
e,elveed from Lyford, Cameron, County,
South Texas, and will be seld at auc-
ton to-day"
Cotton summary Of The New Orleans
THE steadiness of
yesterdays cotton market was explained
in two widely divergent ways The
man who believes that cotton on it's
merits can take good care of itself
said that shorts we're experiencing diff
hCulty in obtaining tendera BILE supplies.
enough 10 give trouble. and that the
position of the actual bale being a strong
one is responsible for reactions upward
even when favorable weather would
seem TO be aiding the bearish cause
THE man who believes artificial sup
port is responsible for the markets con-
unued show OF strength said that talent
and trade alike bought new crop deliv-
cries yesterday because the action OF
the market suggested that July longs
were beginning to put the screws to
shorts and further strength in July
would probably influence new crop de
liveries to climb temporarily to higher
levels
"Of course, the weather artists were
much in evidence. one faction prom
ised heat waves in the West. An
Their exhibited the cOmDara tive records
as proof that current temperatures are
not excessively high. Stil another
turned prophet and promised showers
and cooler weather in the West"