Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-13
COTTON TRADERS
NERVOUS BECAUSE
Of FLOOD. DANGER
Mississippi River Situation Has
Uncertain Effect on New
Crop Speculation.

MEMPHIS, April 12.-But for the
flood situation in the Mississippi val
ley, which has put material check
on preparations for the cotton crop,
it could readily be said that condi-
tions are as good as normal. Some
sections send in reports that are well
night fiattering. though they are as
rule compared with a year ago.
when the start was late. The wealth
er up to a day or so ago was favor
able to work in the uplands and moth
ing hindered it being pushed.
But the seriousness of the flood and
its great promise of danger to the
lowlands has overshadowed the 9TH
er and has kept the speculative trad
ers nervous. While the entire area
in danger of inundatiOn from the
Mississippi river produces only a few
hundred thousand bales at best, and
may raise a good corn crop even IL
enced no little on account of the
menace. This is due largely to the
fact that the speculative traders have
not been fully cognizant of the real
facts and have exaggerated the prom
ised danger 20 the crop. 1t has sim
ply emphasized the susceptibility Of
the trade to the smallest danger to
the next crop and for that reason has
influenced many people builishly. II
is realized that after the waters re
cede there will be lots Of time 20
get cotton planted under favorable
conditions. and in years past some OF
the biggest yields came after over
flows.
Rains Increase Dancer.
Up to the time Of the general rains
which swept over the central valley
Tuesday night and Wednesday, re-
sulting in many streams that We're
low being turned into raging torrents.
II was felt that the big flood would be
short lived. But conditions have
been to some extent changed and the
dangers increased, more territory be-
ing menaced. This is one reason for
the strength shown in the speculative
market, and there seems ample justi-
fication for It.
Business I'm the actual has not been
so active as il was last week or the
one previous. The exporters seem to
have filled their immediate needs, or
II may be that the advance in fu-
lures has been sufficient TO make the
basis" less attractive. Some of .he
business done for export was at eX-
cellent basis, but the improvement
in the money situation and peace
prospects have not been sufficient TO
offset the fact that profits TO the ex-
porter have been reduced since hold
ers have raised their prices some
what. The continued failure to Sc
cure peace in the Balkans also has
served to check the buying for Ed
rope. although in best circles the
idea still prevails that there win be
no more hostilities.
spinners Buy Little.
The domestic spinners have ad-
hered to their policy Of buying as lit
tie as possible and the trade here
has done very small business with
them, though advised that the mills
as a rule hold limited stocks The
tightness Of money has helped Ca
strict buying, but perhaps the more
important reason has been the tar
if question. Now that the changes
promised are radical, or so regarded
by most Of the spinning trade. IL is
expected that efforts will be made
TO adjust business TO fit them. The
feeling in the market is that the tag
if has been largely discounted as
market influence, though il may be
some time before the domestic mills
will begin to buy the rest Of their
needs.
While the American mills are up
set because OF sharp reductions
promised In the tariffs. the British
manufacturers are expecting to find
business better and thus will use
more raw material which win proc
ably result in them buying more
freely the rest Of the season than II
rates remained the same. To the pro-
Queer Of cotton IL makes small differ
ence who buys his crop and on that
account the tarif reductions are not
cause for concern.
Movement of the crop continues
moderate. but receipts at this center
and a few others out Of danger Of
overflow have been larger as re-
suit Of cotton being moved out OF
danger fNpm the water. Sales have
been moderate, yet unsold stock has
been further reduced and is now
around IS. 600 bales. IL Is thought in