The news scimitar. (Memphis, Tenn.) 1907-1926, 1918-12-28
HOLDERS
INDEPENDENT
Shorts Find Trouble in Filling Requirements Without
Paying Higher Prices-Demand Broadens as Pros
poets for Exports Get Better.

ment and that ship people would be left
10 work out the problems in their own
way: h was regarded as offering
further proof that conditions by that
time would be much improved and that
plenty OF vessels would he available.
The bullish use Of this news, Of course,
was on the assumption that with plenty
OF ships for hauling the cotton across
there would be abundant demand for
the space, even il spots should con-
tinue to advance.
One Bearish Argument.
In this connection. however, the
bears offered the suggestion that II re-
NAMED to be shown how freely the
foreigner would buy at current levels,
IN view Of the unsettled state Of affairs
pending the peace conference deltbera-
tons and the ability of some Of the
countries to arrange finances so they
ing policy. They cited, moreover, the
crippled state of France and Belgium
as to their textile industries, due to
wars devastation and the running Of
plants by the Germans, and questioned
their ability to resume manufacturing
on a large scale for many months, This
argument was not loudly proclaimed,
but was thought to enter into the cal
CulationS of those who helped bring
about the reaction in futures.
Although admitting that the advance
has been rather rapid and to a large
extent based on anticipation rather
than realization, the bull crowd appear
confident of much higher prices, There
is nothing new in their argument, but
the ease with which values have been
advanced inspires faith in that side and
many of them are talking of prices as
high as those attained during the first
week in September. They believe that
cotton is so much Of a necessity and
there is such a dearth Of 1t in the
world outside the South that it will be
easy to find buyers for every bale
which the holder will turn loose during
the coming year. Apparently they take
no stock in the argument and present
values are reasonably high and that II
they are forced higher there will be
Curtailment of buying.
Business done during the week was
larger thar for a long time and de-
mand was more general. Some cotton
which had been entirely neglected was
sought and prices paid for it showed
that the buyers had urgent need OF It,
The rise induced increase in offerings,
but at no time was the amount indiCa-
tive of departure from the policy OF
selling gradually. To fill current month
shipments and for January was the oc-
casion for most of the buying. In the
local market sales were Il 800 bales and
quotations went up 100 points, middling
TO 3U,5OC. AT OtneF centeFS' nOWeNel'
there were some higher quotations
particularly in Texas, Houston and Gal,
weston having had middling at 32c and
70, soc, respectively, before the reaction,
Even Dallas was up to 31.3Oc.
As to the curse Of prices in the i'm
mediate future, there is at the moment
more division of opinion than there was
a week or two ago. Many conserVa
tive observers think the ~discounting OF
promised Improvement in the export
| movement has been ample and they
now want to see how demand vii
measure up, as well as what the atti'
tude of the domestic spinners Will be
They also think, moreover, that cottor
is high enough at the moment pending
the clearing up of many uncertainties
| in trade and business.
On the other hand, there is the via
spread belief, especially among tbs
| holders, that prices will go higher ant
that they will be justified, This en-
Courages holding for a time to see I
such a theory Is correct. The ability
of the holders to do this is not ques,'
toned, but the next few weeks WI
shed lots of light on the soundness o
the conflicting theories, In the mean
time the time will draw near for thu
shadow of the next crop to begin tt
| assert itself, it already being a com
mon topic Of discussion.