New-York tribune., 1918-04-17
Cotton Market
Breaks Again,
But Rallies Later
of Veteran Mem
Der Results From Slump;
Liverpool Prices Lower

Prices again broke in a sensational
manner in the cotton market yestcr
day, producing at times a state border
ing upon complete decentralization. The
initial break was equivalent to 50 a
bale. or about $50 bale below the
recent high record price.
Upon the opening of the Cotton Ex-
change the failure Of Gay l.. Schiller,
one of the best known floor brokers,
was announced. 1t was stated that his
liabilities were not large. Schiller be-
came member OF the exchange in
1898. His inability to meet his oblga-
tions was a result Of the swift descent
in cotton prices from the high prices
Of j few days ago.
Rally Not Maintained
While the days price fluctuations in
cotton were extremely violent, trading
was less active, and the excitement ap-
pcared to be subsiding. At one time
during the middle OF the DAY prices
advanced almost as rapidly as they had
declined, but the rally was not fully
maintained, although the market closed
firm, ] point lower to 10 points higher.
There was renewal of heavy gen
cral selling at the start, which broke
July contracts to 27.40, or no less than
S32 bale from the high record Of
April 4. At this level, however, offer
ings were better taken, and the mid
day advance carried July up to 2S.Ss,
or 14S points from the level Of the
morning. That delivery closed at 1853,
or about 20 points off from the best.
Liverpool showed the full maximum
decline permitted for single day,
prices there being a penny a pound
lower, and the local market sold rs to
140 points net lower during the first
few minutes. Houses with Liverpool
connections were again very heavy
sellers, while there was further scat
tering liquidation. These offerings soon
tapered off, suggesting pretty we'll
liquidated market, and shorts became
urgent buyers during the middle of the
day on the .irmcr technical position
and bullish spot advices. Active months
sold up 1873 TO It's points from the early
low level or % to 35 points net higher,
but sentiment was still extremely
nervous, the advance met offerings
Aoit OliC SOuINc vi dIOlHSI, anu idlSl
fluctuations were irregular.
Fresh News Lacking
No fresh bcarish feature was con
nected with the early decline, but sur
prise was quite generally expressed
around the ring with reference to the
extent of Liverpool liquidation. 1t
seemed that few traders had any idea
that Liverpool was so heavily long in
both the English and American mar
hcts. and opinions varied as to whether
foreign liquidation had run its course.
Predictions that the weekly report
OF the Weather Bureau due to- day
would refer bullishly to recent low TEN
peratures may have promoted the rally
during the middle of the day. On the
whole, however, the attention of the
trade seemed to be occupied with the
technical position of futures after tho
break of nearly Ga cents a pound for
the spot situation. Rather conflicting
views We're in evidence as to the latter,
with some of the Southern advices
claiming that unhedged cotton was
bcir~ withdrawn from the market, and
that hedged cotton was selling at a
higher basis. Southern spot markets,
as officially reported, were unchanged
to 100 points lower. Exports for the
day were 5000 bales.