The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-10-17
TEXAS COTTON MAN
ADVISES CAUTION IN
HANDLING COTTON
n. T. Blackwell Points to the
Large Quantities Which
Must Be Absorbed
BIG BUYERS ARE
NOT IN THE SOUTH
Sudden Break Under Present Condi-
tiOns Would Probably Create
Panic in the Cotton :
World

N. T. Blackwell president and editor
in-chief of the Cotton and Cotton Oil
News, Dallas, Tex, paper devoted to
cotton and cotton seed products, and
whose editorial opinion is much re-
spected in cotton and cotton seed prod
ucts circles, was in Birmingham yester-
day on a partial tour of the cotton belt
and to an Age-Herald reporter COM
mented on his observation and his opin-
ion of the cotton market
81 left Dallas 10 or IL days ago." said
Mr.. Blackwell, and have spent some
time in Houston, Galveston and New Or
leans, as well as the past few days in
Montgomery and Birmingham.
I'm Houston and Galveston L find the
buyers carrying an enormous load of cot
ton against hedges, and they report in
ability to sell much at present prices.
At New Orleans, Montgomery and Bir-
mingham the demand for cotton from
buyers who sold ahead early in the sea-
son and hedged same by buying futures
against it is very good, as these buyers
do not wish to transfer October contracts
into some other month and stand the
brokerage if they can fill their spot COM
mitments and sell out their hedges.
MUCH TO BE ABSORBED
Hence the demand for cotton as above
set out has left the market, or the con-
Stunning world with a vast amount of cot
ton a absorb and this is an element of
danger, because the spot men may get
tired putting up margins or the long
crowd filed up on hedges against act
ual cotton.
This demand is not such as to make
the spot situation safe this early in the
season, because it is unreasonable to as
sumo that the trade could absorb $780,
season, because that is about the amount
ginned and offered for sale up to Octo-
Der IA. Any farmer who will hold cot
ton at 171a cents is certainly in need OF
a guardian, and it has been freely sold.
REPORTS ARE CONFUSING
1.-THE ginning and condition reports on
October were contradictory and con-
fusing. Texas, Oklahoma, Arkansas
Louisiana, Missouri, Mississippi, Tennes-
see and Georgia all showed the heaviest
ginning in their history, and most GER
tainly all these states except perhaps
Georgia and Mississippi will surely make
more cotton than last year. Arkansas
and Tennessee, the largest in their his
tory.
However, in the face of this enormous
ginning the trade has taken the bureaus
theoretical guess and run the market ul
more than $50 points.
Now, L am not bearishI but I think
prices high enough for the present and
until the season is older and more OF
the crop liquidated by passing into con-
sumption, L certainly would advise eau
ton.
THE next ginning figures on October
rs are likely to exceed 100000 bales, and
if SO may cause a revision of crop esti-
mates and consequently prices.
LAS a rule the south is not specula-
lively long but the entire north, east
and Pacific coast, according to my ad-
vices, have been heavy buyers of con-
tracts, and most of such buyers have lit
tie idea of the actual value of cotton, and
if by any chance a heavy break should
take place, they would quickly create a
panic.
These in my mind are the dangers
which confront us. On the other hand
there is an enormous amount of cheap
money ready to finance cotton"
Mr.. Blackwell left last night for Mer-
idian, Jackson, Vicksburg. Shreveport
en- route to Dallas.