New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-03
COURSE OF WEEK
in COMMODITIES
Record Making Changes in
Prices-Cotton and COT
fee Exchanges Close.

market been through such an exciting
| time as the week inst closed. Begin
ming with fairly normal conditions on
Monday, although there were rumblinss
of the coming storm, the second day Of
trading saw millions added to the pa
per value of the grain in this country,
through the semi-panic occasioned by
the belligerent attitudes of the Euro
/ pean powers, and advances made with
such rapidity and excitement that At
/ times il was impossible 10 keep track
of them.
On Wednesday there was a period Of
! comparative calm, with considerable
/ reaction. On. Thursday the storm
/ broke again, and prices went whizzing
up and down, generally up, in a spec
/ tacular although ruinous fashion. On
/ Friday the market seemed to be COM
ing to its senses, prices settled back
n little, and II was realized that the
foreign demand for American wheat,
] IN case of widespread war, might, after
/ all, be only an aggravation through in
ability or unwillingness of buyers TO
pay the heavy insurance demanded
against the capture Of cargoes and
their confiscation as contraband OF
war.
( The maximum decline in cotton
prices for contract deliveries from last
Saturdays closing TO the panic prices
forced in the sensational collapse m
the market ranged from 225 to ESQ
points, or the equivalent of Sll 25 u
bale TO Sl4 a bale. The last prices
established just before business vas
suspended by the Cotton Exchange nv
thorities were: August, 9.90c.; 0cto-
Der, 1050c.; December, l0.75c.; Janu-
airy, 10.70c., and March, 10.7ec.
These final quotations showed net
decline from Thursdays closing of 55
to 104 points on the day and las to
100 points as compared with the Sat
urday closing more than a week ago
for all months beyond August deliy-
cries and of go points for August
There has been no such violent break
in the market as the above fluctuations
since the collapse Of the corner" in
cotton engineered by ID. j. Sully over
ten years ago. Then, however, cotton
was selling at over 3 cents. and in the
break when his firm failed the price
/ fell to 1919 cents. In 1904 there was
sharp recovery of over a cent few
I days later, followed by a long decline
during the succeeding months, with the
/ price ultimately going below II cents.
/ The financial trouble of Saturday was
simply forced by an unprecedented con-
dition in finance the world over from
| the war scare. II occurred after a
week Of liquidation, and marked the
climax of the most exciting events the
cotton trade has ever experienced.
But for such conditions the price
would never have gone as low as the
| 9ls-ce basis reached in Saturdays
panic. That price is practically below
the cost of production, and, of course,
under such circumstances there was no
reason for its establishment, except the
forced liquidation of a large line of
contracts in time Of panic, when there
were practically no buyers. The very
violent rally of 100 to 1875 points to the
price of 1919 and 1914 cents for the
most active trading months of October,
December, January and March proves
that assertion.
The tremendous drop in cotton val
ues has had a weakening effect on
cotton goods and yarns. Trading was
limited all the week by the unwilling
ness of buyers TO operate at any rea-
sonable price Offerings of goods from
second hands were common enough, but
10 market could be found for them in
any broad way. Western markets have
continued to buy steadily in small
quantities for quick shipment and dis
tribution there seems much better than
in other sections.
Owing to the great strain upon
credits and the closer examinations Of
drygoods paper by all banking factors,
forward operations have been discour-
aged. Business is being confined strictly
t. the most urgent needs, and where
forward orders are being placed it usu-
ally happens that they are being given
10 assure continuance of mill produc-
ton on staples that arc well known.
| Prices are weak, but the trading has
been so inactive that great changes are
not yet noted. Mill agents are begin
ming to counsel prompt curtailment
until more settled conditions obtain IN
the markets.
Crop reports from Russia were also
unsatisfactory, the spring wheat crop
/ being estimated officially at 152,OOO,OOO
| bushels less than last year, with oats
/ 270,000,000 bushels and barley oO,OOO,-
/ 900 bushels less.
! One would have to turn back to the
| time Of Napoleon TO find political con-
/ ditions in Europe in such terrible
shape as now existing, and only such
a remarkable state OF affairs could
bring about such utter Generalization
as now seen in the commodity markets
! Of the world. Never before has any
one seen the strange anomaly of prices
| falling rapidly in domestic markets in
the face of foreign news and influences
that would ordinarily seem to warrant
further big upturn.
At the outset even many well in
formed dealers were somewhat per-
picked to find conspicuous weakness IN
our markets, when Liverpool cables
showed an advance of ga 07%d. And,
furthermore, this confusion was tenn
porarily increased when they saw the
still more ominous aspect Of political
affairs. Careful investigation disclosed
the fact that the remarkably strange
action of the markets was caused by
the practical suspension of export
business, whereas a large export trade
was generally counted on, had the war
been wholly confined to Austria and
Servia.
Corn was also decidedly stronger
carly in the week, but the trading was
not large and there was little excite
ment. The variations were far from
wide, and il was evident that the mar
ket was overshadowed by wheat. The
initial strength was partly in sympathy
with wheat, but partly owing to small
stocks and dry, hot weather West.
Later in the week there was a weak
err feeling, partly following wheat, and,
furthermore, the weather West was
better. The temperature was lower,
with beneficial rains in some sections.
Commerce Under New Tariff.
According to figures just made pub
lie by the Department of Commerce at
Washington, the first nine months
operations of the new tariff law showed
a foreign commerce of S3,243,566s $40,