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

NEW YORK, July 10.-Around 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 to 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
talk of bOll-WeeVil in Texas Gables
from Liverpool stated that the strength
there was caused by short covering in
Tear OF high temperatures over the holi-
days. Some Of the larger spot interests
were noticeable buyers of new crop.
The 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 a 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
fall upon the merchant or producer,
probably the latter, but as a matter of
fact, il 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 Is 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
merchant to have d 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 kill all opportunity to hedge.
Such situation would drive out all the
smaller merchants, leaving the business
in the hands of few rich spot dealers
who would have the Southern producer
in a merciless grip. '-Clevenburg.
Reports of serious boil weeviI 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 a 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 0Dn-
tracts scarce any unfavorable reports
Will cause further advance.
Dallas wires: "Texas-Panhandle and
south clear; central and east cloudy:
numerous rains. OklahOma-North and
west clear; balance cloudy; local rains"
NEW ORLEANS. July 1O.-Hayward
& Clark: The weather map is very
favorable; it 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
tered showers elsewhere. Indications
are for cloudy, with scattered showers,
and cooler in the central belt.
Houston, Tex, wires: First bale re-
ceived from Lyford, Cameron County,
South Texas, and will be seld at auc-
ton to-day"
Cotton summary of The New Orleans
Times Democrat: THE steadiness Of
yesterdays cotton market was explained
in two widely divergent ways. The
man who believes that cotton on its
merits can take good care of itself
said that shorts were experiencing diff
flculty in obtaining tendeTabe supplies:
that the short interest is still large
enough to give trouble. and that the
one is responsible for reactions upward
even when favorable weather would
seem 10 be aiding the bearish cause.
The man who believes artificial sup
port is responsible for the markets con-
tinued 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
other exploited the comparative records
as proof that current temperatures are
not excessively high. Still another
turned prophet and promised showers
and cooler weather in the Mestn