New-York tribune., 1918-09-15
Price-Fixing Fear
Causes Corn1notion
In Cotton Market
Declines Averaged More
Than 100 Points at
the Lowest

~hS PI lNo VI COtLOu WOulQ DS U6SQ
should such action become necessary
after investigation, led to wild excite
ment in the Cotton Exchange yester-
day and depressed prices on an aver
age Of more than 100 points. Despite
Bernard NJ. Baruch's similar remarks
few days ago, traders were surprised
at the new warning and interpreted it
to mean that definite action was closer
at hand than had been generally be-
| lieved.
In the short trading session selling
was active and seemed to come from
all sources, but after an initial COL
lapse Of prices the offerings were fair
ly we'll absorbed and the fluctuations
were constantly rejecting the activity
of traders who were rushing to even
up commitments pending further de-
velopments in the proposed inquiry in
to the cotton situation under the
auspices Of the War Industries Board
October contracts sold off to 5000 at
the start. making a decline of 1875
points from Fridays closing price. and
of 242 points from the high level of
last Tuesday. A rally to 1910 fol-
lowed, and then the contract eased off
to 1929. The general list closed at
decline Of 85 to 1873 points.
Sentiment Against Price Fixing
Although the sentiment around the
ring deprecated the absolute fixing of
cotton prices, the members found much
70 commend in the Presidents dag
nosis of cotton problems.
There are two reasons given in
President Wilson's statement" said
Walter L. Johnson, president of the ex
change. (Which are commendable and
which will meet with the approval of
cotton growers and handlers through
out the country. They are. first, the
plan to have domestic mills take
proportonate share Of all grades of
cotton, and also to purchase for for
eign governments as we'll as for the
United States and distribute the
various grades pro rata.
'Heretofore the foreign countries
have been taking all the white cotton
they could purchase. and have left the
lower grades for consumption in this
country and the new plan would work
out to the satisfaction of every one, so
far as | can see.
"However, l am opposed to price Ak
ing, and this is not necessary at pres
ent. There does not appear to be any
good reason in my opinion why def
mite price should be named, whether
the figure be high or low. By far the
best plan that has yet been proposed
is the one calling for the appointment
of committee of three to purchase
cotton for this country and the Allies.
Such a committee could name q price
that it would pay during q certain
period and the planters would have to
come to the committee and sell, main
ly because by far the greater part Of
the cotton crop of this country is being
consumed by the governments. Such
plan would be price fixing enough. and
this would cause a price to be named
which would be flexible and could be
advanced or lowered in accordance
with the conditions prevailing at the
time the purchases were made"
Traders Expect Drastic Changes
Other opinion around the exchange
was in most respects similar to Mr.
Johnson's. Many Of the traders, how
ever, expressed the belief that price
fixing seemed almost certain, and near
ly all seem to expect drastic changes
in the marketing Of the Southern
staple.
The Presidents announcement cast
all other market factors into relative
oblivion. The census report. showing
domestic mill consumption of 534,914
hall FA, l.,
year, elected little comment. 1t was
suggested that the indication that
methods would be considered to elimi-
nate speculation and boarding in
creased the nervousness and chaos
around the ring. Some held, however,
that the reference was to operations in
spot cotton and would not seriously in
terfere with the future exchanges.
The market moved most remarkably
at the opening, first prices being 100 to
1875 points lower, with active months
selling 1870 to $40 points under Fridays
closing figures. Covering was heavy
on the initial decline, causing rallies Of
60 to 20 points from the lowest. but
liquidation continued and closing
prices showed recoveries of only 20 to
So points. Exports for the month of
August were 2S7.460 bales, against
459,66l bales.
Local Spot Market Steady
The local market for spot cotton was
steady and 115 points lower Mt 35.O5c
for middling upland, sales nil.
Southern spot markets follow: Gal
weston steady. 70 points lower at 34c:
sales, 600 bales. New Orleans steady,
unchanged at 33.5Oc; sales, 1929 bales,
Mobile nominal, unchanged at SO 25c;
sales nil. Savannah quiet, rs points
lower at $50; sales, $40 bales. Will
mlngton steady, unchanged at 33.75c;
sales nil. Baltimore nominal, un-
changed at 35c; sales nil. Augusta
steady, 112 points lower at 80 SIC;
sales, 1857 bales. Memphis steady, un-
changed at 24.50c; sales, $50 bales. St.
, Louis steady, unchanged at 345Oc;
sales nil. Houston steady, 100 points
lower at 33.5Oc; sales. 5,4S5 bales.
A comparison of prices follows:
Yes days Previous Year
close. close. ago
Cash ................ 35.o5 1920 21.45