The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-12-11

trade to take the place Of governmen
orders, which they lost. Still due. t.
unsst tiled conditions. orders for civilian
trade have been coming in Slowly. I
8 may also be said that popu1ar1y tht
81; ;goTeSnment was supposed to be tax
{ ing at least twice as great a proper
ton of cotton fabrics as was actual
~ The case. While this information
was. erroneous, It's temporary effec
upon the trade. was almost as grea
SIR it had been true. Mills in Eu
rope have held off buying, awaiting
The determination OF credits and ton.
mage that will be allocated to cottor
and other, questions directly affecting
fheir operation under peace condi'
lions.
There was a general feeling that
: an commodity prices, upon the ending
.of the war, would rapidly drop, ano
the cotton business, along with other
Iines of business, has shared this feel
ing and the consequent uncertainty
s prevailing has. served as limitation
upon the volume of business. For a
sconsiderabIe period before the sign
ins Of the armistice, there was a large
voiume of selling on the American
future. markets from foreign coun-
Gies, both as a speculation as as
StraddIe between the American and
liverpool markets. Such foreign sell
/. ing, Whether it was in reality
H 4culatiye short sale, or whether 1t
Z ives a. part OF a stradd1e as indicat-
aed. .opetated to help depress prices.
nese conditions among others re-
suited ih e., weak and errat1c market
wliieh gradually sought lower levels
There Isl no doubt; as to the intrinsic
value and ssas to the ultimate increase
h fofaign re91irem ents Of cotton
abr6al hut ennporary prices ap-
SspS5ached levels (which would hare
ua9anf !, actual loss to producers. The
co,umntee on cotton distribution, rec
ssszSng thissf fact; took steps 20 stabi-
,,Ns4he market, and to that end con-
fsTad with All executive agencies OF
eossrnuient whose activities affect
sssc5tfon trade directly or indirectly
: ,ifh me result that, in cooperation
. 9Th var trade board, the removal
pf license restrictions to England
zffance; italy and Japan and the ma
rarta rretaxation OF restrictions in the
-sssais1g Of licenses to Spain and other
rlettitraa countries has followed.
FsesaThe committee was also in consul
ssaffon with the railroad administration
and Secured the resumption Of the is
s,,ance Of through export bills Of lad
ing Tor cotton
sT1ie committee has taken steps to
: cp,unTeract the effects Of false and
misleading information, which was
calculated to depress cotton, by Sc
curing the facts and authentic de-
.niass of false reports attributed to va
srio,ls governmental agencies.
S.e.The conditions existing at the
sisning OF the arnaistiee, as outlined
above having rendered the market
= very weak and nervous, the commit
tee in order to prevent merely specu'
iative selling on the future exchanges
from taking. advantage of temporary
conditions by depressing the price o.
cotton to point where 1t would oe
entirely out of line with its real val
ne. issued an order on November i
prohibiting speculative short sell1ns
On American future exchanges. The
Eday before this order was issued
Errices had dropped two cents pei
pound on the American exchanges
ftfis being the limit of fluctuations II
any one day, according to exchang'
rulings. Since this order has beer
in effect, prices have fluctuated within
range of about three cents pc
pound, and the market now appear
TO be in a, more healthy condition
&than at any time since the signing o
Ehe armistice.
J s.tgYhi1e the conditions at the sign
pne of the armistice, as outlined above
oresens: temporary bearish situation
ass a matter of fact a long range vleI
IL ne cotton presents some exceedlngl
budIish aspects.
ssesiFour short crops have been grown
As result, in spite of smaller con
sS13mption than before the war, tn
aocks of cotton in the world. of a
Hkinds. have declined from S,3O0,0O
aIes. July 81, 1915, to 100000 bale:
Jufy 81, 1918. This however, does nc
Eteif the complete story, as stocks {
Hctton goods in America are greal
kdepleted and in all other parts OF tn
world have been reduced to the 10"
est figures since the Civil War.
I Gas an example Of improved cond
sSf;ons which have almost immediate
followed the conclusion of hostllltlf
il is interesting to note the situate
with respect to Great Britain, whlc
country consumes normally abo'
100000 bales of American cotto
Up to the signing of the armist1c
tonnage allotted for transportation
cotton to England was sufficient
carry, only about 10000 bales. p'
month. However, for the month
December, tonnage was allotted II
s,3ee, 600 bales Of American cotto
Tnat 1.-THE allotment Of tonnage Il
January forwardings will take ca
az about $685. 900 bales. At this ra
Of forwarding Great Britain will tai
during the current season, IN exec
-of (. .o00. .000 bales as against 2.215,o'
bales in the past season.
=. 3.exf~~. II