New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-21
Smash in Cotton
Follows Closing of
Liverpool Market
British Government Takes
Sudden Action to Pro-
tect Spinners

Trading on the Liverpool Cotton Ex-
change was stopped suddenly yester-
day by the British authorities, who
acted to protect English spinners from
being further victimized by runaway
market, prices on the Liverpool ex-
change have been advanced in a most
sensational manner in the last few
days.
The explanation for the behavior Of
the market was that active competition
had developed between Continental and
English spinners for the small stocks
of American cotton now available in
the United Kingdom. Buyers were said
TO have accumulated contracts repre-
senting the Liverpool stock Of cotton
many times over in the effort to make
sure of their spinning needs.
Competitive Buying Halted
The situation, according to Liverpool
advices. became so tense that the Brit
ish government decided to put a stop
to this competitive buying By closing
the market for future trading both in
American and Egyptian cotton until
conditions become more settled.
Pending conferences between officials
of the Cotton Exchange and the Brit
ish Board Of Trade it was deemed best
to close the market entirely. Private
cables intimated that definite plans to
restrict trading would be worked out
within a few days. Meantime trading
in futures for the purpose Of liquda-
ton only will be permitted up to the
close next Friday on the basis of prices
prevailing at the clost last Tuesday.
The local market. which. following
the lead Of Liverpool, has also been at
tracing a great deal of attention be
cause of excited advances TO the high
est quotations reached in many years,
was greatly disturbed by the news from
abroad. Many operators jumped to the
conclusion that if the Liverpool ex-
change should be closed permanently
buying by foreign interests would be
greatly curtailed, and. furthermore,
that some action to restrict trading in
the domestic markets might be regard
ed as necessary.
Officials Of the local exchange re-
fused to say yesterday whether any
steps are 20 he taken 20 curb trading.
but they are scheduled to meet to-day
TO discuss the situation.
Heavy Local Selling
Active and excited selling took place
in the local market when the closing of
the Liverpool exchange was announced.
October contracts broke 10 24.40, max
ing a decline of l73 points from Tues
days closing figures and of 22O points.
or S11 bale, from Tuesdays high rec
ords. When the long contracts dis
turbed by the news from Liverpool had
been pretty we'll absorbed there was a
recovery of approximately cent a
pound during the afternoon. with Octo-
Der closing at 25.43. and with the gen
eral list closing at net loss OF % 10 81
points.
yesterday morning no intlmation Of such
action had reached traders on this side,
however. and the announcement un-
settled sentiment.
Traders here have realized for sew
oral days that the cotton situation
abroad was tense. and have attributed
this largely to the difficulties of trans
portation. The belief is held in usually
well informed circles that British trade
interests or spnners own sufficient cot
ton in this country to meet all their
more immediate needs abroad were il
possible to move il with sufficient rapid
ity. For this reason many local traders
had felt il illogical that the market
here should have been influenced by the
excited advances abroad, but there was
doubt as TO just how far recent buying
had been inspired by the expectation Of
still higher prices in the English mar
ket.
There were no sales of spot cotton
reported there yesterday, and Southern
markets were quiet and generally
lower Closing quotations on the local
exchange, with comparisons, were
Yes'dav's Previous Year