The Dawson news. (Dawson, Ga.) 1889-current, 1918-11-19
COTTON RECOILSAFTER
A DRASTIC DECLINE
ONE TIME DURING THE WEEK
WAS OFF MORE THAN FIFTY
FIVE DOLLARS A BALE.
PANDEMONIUM PREDOMINATED

Reaction Came Friday and Market
Has Better Tone-Holding Move
ment Has Good Effect-Foreign
Demand for Staple.
Pandemonium predominated in the
cotton market last week. It was the
most momentous period in the history
of the market, with the exception of
the world price movements following
the declaration of war by Germany.
Contrary to expectations of all IA
miliar with cotton, the first days
trading after the signing of the ar
mistice was marked by deluge of
selling orders, which resulted in a
severe break, prices caving in the full
maximum permitted for any one day.
All bullish factors were completely
ignored.
OFF SIS Bale From High.
An order isued by the government
cotton committee was read by the ex-
change officials Immediately before
the opening Wednesday, which stated
that no further short selling would be
permitted and that only liquidation of
long lines and that bona fde hedge
sales against the purchase of actual
cotton and nothing but liquidation or
ders could be accepted from foreign
ers.
But this failed to check the on
slaught, and another maximum slump
ensued with all options in New York
making fresh low levels.
Early Thursday another selling
wave appeared, with all months in
New Orleans crashing to new lows,
while January New York caved in to
new low territory. At the bottom the
New York market exhibited a net de-
cline of 289 to $40 points-S14.45 to
SIT bale from the final quotations
of the previous weeks close, or a net
loss of 1850 to LOO points-$52 SO
to S55 a bale-from the high records
of September 3.
Market Regains Equilibrium.
Late Thursday the tide turned. The
market regained its equilibrium, as
the result of the increased effective |
ness of the ban on short selling, coup |
led with the failure Of the tumble in
futures to weaken southern holders,
which had been the dream of those
hammering the market. In addition
to this, announcement by the gov
eminent cotton committee that ex-
ports this season would exceed by
fully 100000 bales those of year
ago, owing to heavy needs abroad,
added considerable impetus to the
constructive side of the market.
Under the impetus of this demand
futures rebounded with pronounced
momentum, both markets surging the
full limit from the days lows.
But this was only the beginning of
the recoil. Buyers swarmed the mar
ket Friday, with values booming the
full limit on an avalanche of orders
from domestic and foreign shorts, as
well as for fresh long accounts. 1t /
seemed as if there was a buyer for
every bale of cotton to be ginned this /
season. But there was a cessation of |
selling. Bidding was Of a frantic !
character all day with thousands of |
orders untitled at the finish. All |
months had skyrocketed to the "roof"
fully half an hour before the close. /
The weekend session took on diff .
ferent complexion as the result of a
disposition on the part of longs to
realize and absence of Liverpool sup
port. After rising So to 81 points,
the market slumped 80 to 120 points
from the highs, but finally ending
steady to SIS points down, with
shorts covering freely
At the highest Saturday the mar
ket stood within a few points of
Tuesday high levels, or 800 to 270I