The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-18
APPRECIATES EXTENT
OF DETERIORATION
Trade Suddenly Realizes Condi-
ton of Crop Throughout
Texas and Oklahoma.

lahoma discouraged the few operators
left trading on the bull side until yes
terday morning. 1t was not until then
that the trade appreciated the extent
Of the deterioration going on in the
as and Oklahoma and also in parts of
Arkansas and Tennessee.
Absence of any encouragement from
either the leading spot interests or tho
largest Wall Street operators to take
the bull side. together with the daily
bcliof that good rains would occur, had
KEEP: sentiment bearish, and the many
shorts among the local and Wall Street
and southern trading element had been
luled into a feeling of security on the
bear side OF the market. Too little at
tcntion WAS paid 10 the increasing Sc
robustness OF the drought in the south
western part OF the belt. Sentiment
continued so hearish that most traders
b,1 failed to concede even me prob
ability of the market developing any
rally.
Turning of the Market.
AS q matter OF fact. however. the
maximum declines from Saturdays
closing prices to the new low level es-
tablished for the season on thursday
was only ten points. October then
sold down to 1922, December 1888;
January. 1912. and March TO 1888,
agains. HAS for August and 11.12 for
Se;tsrnDcr. With only 2l.000 bales of
contract cotton at this port immedi-
ntclv available for deliveries on An
gust and september contracts, senti-
Inents has been entirely too bearish
and the short interest much too large
Rut this was not realized. however, by
either the big interests in the trade or
the generality of local operators until
the failure of any general rains to APP
pear in either Arkansas, Oklahoma, or
Texas Thursday afternoon caused some
of the big operators to decide to cover
their shorts When Liverpool jumped
siN English points early yesterday on
this. and closed firm at that advance
over Thursdays prices, and the Giles
crop report confirmed the crop damage
in Texas and Oklahoma referred to in
these market reports earlier In the
week. there was "A sudden scramble to
buy cotton. This increased as business
progressed. and closed the market
strong Yesterday at near the best
prices with a maximum advance or %
to rs points from Thursdays lowest
quotations.
August went up to l1.7o. September,
lliQ; October, 1l.l6; December. lilo;
January 1898 and March, HOS, in
this effort To get back some OF the cot
ton sold during the movement to keep
prices down earlier in the week. 1t
now looks as though very heavy
short interest is outstanding. and UNI
less good general rains occur over the
southwestern part of the belt to break
the protractcd drought and high tenn
pcraturcs there of the past month. a
sharper rally may develop.
That the crop has been damaged over
the southwestern part of Tie belt ana
is now in n critical position there, Is
apparent from the private advices be-
ing received by some Of the big spot
interests and other large local trade
and Wall Street houses from travelling
crop experts and agents throughout
Texas Oklahoma and Arkansas, and
branches at New orleans. Some OF
these reports show that there has been
a falling off in condition of over ten
points In Texas and fifteen in Okla
homa and ciGht in Arkansas since the
last government crop report was coW-
piled TO July ~. making the avearge
condition throughout the cotton belt
on that date 796 per cent.
These reports state that there has
been heavy shedding of small bolls
from the extreme high temperatures
and continued lack of i..ins during the
Iast three weeks and nov the older
hollis are being opened prematurely,
AID Tho plants In many sections are
blooming at the top. These conditions
show that the critical stage has ar
rived, and thc.:cgop has gone back so
materially from tile militant prospects
OF 81 record Greaking yield of a month
ago for Texas. that no such promise
upw exists Moreover. unless good gen
ID 4...- I
throughout all the cotton growing
counties OF Oklahoma, before the end
Of tho ensuing week. the damage will
he very serious Tennessee and Arkan-
sas VIII also he in need OF good rains
by that Time In view of these con-
ditions it is very fortunate that the
crop in mississippi. Louisiana, .ilaba
ma Georgia and the Carolinas has been
favored with more seasonanic tcmpera-
lures and more frequent showers The
outlook in all Of those States, except
ia parts OF Alabama. Louisiana and
mississippi. is reported TO he even much
Letter than month ago However,
over half OF the crop is produced by
Texas, oklahoma and Arkansas. and
the conditions there are now the domi-
mating influence on trade sentiment
and the markets here as we'll as a,
LIVERPOOL and New Orleans
one result OF the extremely hot and
pFotracted dry weather IN the south
west has been 10 hasten the opening
OF the bo!ls OF the earlier planted cot
ION over the southern half Of Texas
IS consequence. picking is progress.
ing RAPIDLY all over that section and
new cotton Is appearing in increasing
volume daily At the interior points
contiguous 10 Houston and Galveston
As much new cotton as 5000 10 : coz
bales per day has been coming in a,
those points this week II is believed
that as much as 100000 bales Of new
cotton from this seasons growth will
therefore appear in the receipts before
the end Of this month from that par,
81 the belt TO he counted into the old.
crop movement
Up TO the time the market for con.
=. tracts rallied so sharply Yesterday. spot
brokers' were reporting Il good deal O.
dltnculty II! finding buyers among IN,
spot dealers In the daily offerings o.
these Increasing receipts Of new col;
ton, and as consequence. q great dea
Of hedge selling Of October contract