New-York tribune., 1918-09-06
and Comm cree
Price-F king Talk
Causes Big Break
In Cotton Prices

Cotton prices in the New York mar
kct tumbled severely yesterday as a
result Of the announcement of Bernard
M. Baruch, chairman of the War In
dustries Board, that committee would
be selected to determine whether con-
troll of distribution and price stabiliza-
tion were necessary.
General liquidation in the morning
dragged the price level far from the
high marks established Tuesday. When
the downward movement had taken its
course December contracts, for exam
pie, sold at S2.05c, 235 points below the
closing price of Wednesday and 4kc
a pound less than the high of Tuesday.
Although the market remained unset
tied, rallies later improved the quota
lions, and the general list closed
steady at a net decline of 40 to 1872
points.
Members of the exchange who dis
cussed the proposed price fixing with
out exception said that so-called sta
blzation would greatly injure the cot
ton industry and the country. Walter
l.. johnson, president OF the Cotton
Exchange, Summarized opinion around
the ring, saying:
Cash Conditions Factor
at probably will be some time be-
fore any committee that is to be ap-
pointed viii be ready to make any
recommendations, and | believe that
the outturn of the crop and prevailing
prices at that time Will be important
factors in determining whether the
price of cotton shall be regulated or
not.
aft a definite price for all sales Of
cotton should be fixed there would be
no further useful purpose to be served
by future contract markets, but l be-
government to take such a course, and
I do not think that such action will be
TAKEN"
Other members expressed their be-
lief that even the Southern growers
probably would oppose price fixing un-
less guaranteed a higher price than
now prevails. They pointed out that
the planters in the South suffered
greatly in the early months of the
war, when the Cotton Exchange was
closed, as they were unable to find a
quick outlet for their product.
The break in prices did not neces-
sarily imply any general belief that
such an investigation as proposed
would result in the fixing of prices at
a materially lower level, but Mr..
effect on sentiment which led to a
fairly ge-eral disposition, to even up
commitments.
Liquidation Was Urgent
Coming after such prolonged and ex-
tensive advances as have occurred in
the market during the last month, this
naturally took the form of urgent
liquidation. AS the decline extended
the selling naturally became NOR ex-
cited and urgent, and, after opening
weak at decline of 81 to 106 points,
active months sold 222 to 235 points
under Wednesdays prices. Offerings
then subsided and there were rallies on
covering AMI buying believed to be for
Japanese account. Closing prices were
within or 10 points of the best point
reached on the recovery.
Further rains were reoorted in he
Southwest, and a more optimistic view
has developed as to tl.cir possible effect
on the final yield, depending upon the
frost date and future weather condi-
tions. There might have been some
selling in this respect, even had there
been no announcement from Washing
ton, and there was also considerable
Southern selling at the start.
The selling of the latter sort was
shut out by the rapidity of the decline.
as it was mostly on limited orders and
was little in evidence during the after
noon. According to local spot inter
ests, Southwestern holders showed a
disposition to withdraw their offerings
on the decline below 35 cents, but there
was a moderate business officially re-
ported on the break yesterday. Hous-
ton, for instance, reported sales of
5,424 bales at 4 decline cf 115 points
to 1880 cents for middling, and other
spot markets showed declines ranging
from rs to 200 points. with smaller
volume of business
A comparison of prices follows: