Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-08
TRADE BUYING
PROVES PROP.
TOCONTRACTS
Continued Improvement in Crop
Prospects Is Offset by Steady
Foreign Mills Absorption.

NEW ORLEANS, June 7.-Bearish
speculation in the cotton market re-
ceived a decided setback Monday
when the Government Bureau report,
placing the average condition of the
crop on May % at 1911, was issued.
The trade here had been expecting
around SO. while certain of the bear
element had been counting on
| showing of 81 or better. The actual
| figures, S below the ten-year average
| of May %. were so far below general
| expectations that ring traders in this
| market were stunned for a moment.
When they recovered from their
surprise. and started to buy back
some of the cotton they had been
gayly selling before the report was is
sued, they had to bid the market up
Is points or more before they could
get under cover Had it not been for
| the fact that the few remaining bulls
| in the market realized that a distinct
| Improvement has taken place in the
condition Of the crop since the date OF
the bureau. and were willing TO sell
/ on a moderate advance, the shorts
would have found themselves in
very tight position
Famous Bulls in East. -
| Another thing that was 10 the al
vantage Of the bear element was the
| fact that Messrs. Brown and Hayne'
/ the bull leaders. are in New York, at
| tending the Federal investigation of
the alleged bull pool in which the
/ MGEaddens and other bearish inter-
ests we're squeezed two years ago
until they "squealed.' Had Brown
| and Hayne been here, it is considered
unlikely that they would have let slip
| the opportunity to get in another llck
at their ancient enemy, the bear spec
ulator.
In studying the figures on condi-
| ton put forth by the Government Blu
Ireau. il is found that the low average
was caused almost entirely by the
J low conditions reported as prevailing
| i'm the AtantiCs May %. The Georgia
condition of 50, as compared with -
/ last year, came in for much criticism
/ at the hands of the talent, il being
Icontended that the Georgia crop was
no worse off than the Alabama crop
before the rains came May 24-26, but
1 the Government Bureau placed the
average condition of the Alabama
/ crop at 6 points better than that OF
/ Georgia Last year the crop in the
Atlantics got bad start, but the
/ bureau placed the average condition
at "A for both States.
/ Since the bureau report the crop
! has made rapid Improvement in all
| sections of the belt The weather has
been warm and dry, enabling the re-
planted cotton TO come up to a good
stand, and aiding the farmers to catch
| up with the cultivation of the crops.
! Rain is now beginning TO be needed
| i'm some sections, especially Texas
and South Carolina. and should rains
be delayed much longer the short in
| terest i'm the market would become
decidedly nervous.
Trade Buying Is Feature.
Trade buying continues a feature
of the market and il is the absorp-
ton of contracts by European spin
ming interests that holds the market
so steady in the face of a depressed
stock market and the generally pre-
vailing bearish sentiment. Cables
| from Moscow recently received in this
market state that spinners in that
| country are bare of stocks and will
need several hundred thousand bales
Of old crop American cotton before
the end of August.
| Southern spot owners are maintain
ing a firm attitude, and the specula-
tive attacks being made on the July
/ position here and in New York. for
the purpose of inducing them to turn
loose, have been Of no avail in that
/ respect
( Liverpool interests will probably
take care of the short sellers of the
July position in New York.