The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-18
SAGGING TENDENCY
IN COTTON MARKET
Pressure Of Southern Hedge
Sales Chief Influence in
the Decline.
WORK on CLEARING HOUSE

Cotton began to show a distinct ten
dency yesterday and the trend was down
ward. As a matter OF fact. the closing
price showed decline Of approximately
half a cent from the opening level on
Monday morning
To those who expected that the re-
opening OF the contrac, markets would
bring an immediate boom In prices the
first results may prove rather disappont-
ing. This however. is due to "A failure to
appreciate fully the functions performed
by organized commodity markets. After
being closed for nearly fifteen weeks II
was only natural rhat certain stale
feature. OF an unfavorablc character
should remain to he discounted whenever
the opportunity came Part OF this dis
counting process undoubtedly has been
accomplished by the drop from approx
mately the IL cent level to the opening
quotations on Monday morning.
At the same time Il should la borne In
mind that Il was impossible for spot prices
to show full recognition OF every detail
in the situation. The Influences which sp.
pear to H., operative chiefly consist AZ
preseu; OF an effort on the par. OF IN"
South TO put out hedge sales in the con
tract market and the apparent desire OF
some holders OF Old December contracts TO
liquidate. Fortunately the declining ten
dency OF the mark-. in the first two days
since its reopenins will not be taken In
spirit OF narrowness by the South. Evil
IDENTIFY such course was anticipated The
Atlanta Journal OF November is In an
editorial discussing the prospects OF the
reopening Of the cotton exchanges had the
following TO say.
"Ivha EXCHANGES With daily Uuof
serve TO fix world price upon which
every one may proceed 10 the transaction
OF business with all certainty. II may he
that the first result OF the opening to-
morrow will he a decline IN price but II
so we are confident that 1t will rN, he for
long. In fact IL is probable that the hone
OF a substantial and maintained rise IN
the price OF cotton just now lies in the
trading activity that will take place upon
the exchange"
All of the problems which lie before
the Cotton Exchange were rot settled
prior 70 the reopening. There is a strong
and justitiable desire on tie part of the
progressive members 70 see the new
Clearing House plan in operation as soon
as possl he. Business then car proceed
with more certainty and the Insurance
provided against Street losses through the
medium OF failures will not be III. small
est factor In the restoration OF confidence
course OF preparation. and 1t is hoped that
they will be ready for hnal action before
a great while.
The efficient work OF tire conference
committee IS 20 receive grateful recogui-
ton by the members OF the New York
Cotton Exchange at a banquet at Del
monicos. on Forty-fourth street on the
evening Of November 30, The dinner is
TO be a gala event in local cotton history
and preparations are being made to ccle
brate in heiitting style the reopening Of
the Cotton Exchange. This was brought
about by the splendid work OF the confer
ence committee, consisting OF Edward VI
Weld. chairman: Il {. Cairns and Henry
Schaefer Elaborate arrangements for the
oCca sion are being made by the banquet
committee. consisting OF william Mitchell,
NorIie Sellar, l.. +. Walker and II. =.
ShonnardL
Following are the prices on futures,
which closed barely steady: