Arizona republican., 1919-11-04
COTTON PRICES
RISE BECAUSE Of
GERMAN BUYING
One Cause of Recent Sen
sational Advance Said to
Be Purchase by Huns of
More Than Half Million
Bales

Large German purchases of the bet
ter grades of American cotton have,
according to the New York Times,
been the principal reasons for the SEN
satonal advance in price in southern
markets, especially Texas. and where
spot cotton the other day sold above
30 cents pound for the first time
since the Civn war. The article con-
times:
Tt was estimated by men in the
cotton trade yesterday that more than
100000 bales of choice grades has been
bought by Germans or German agents
since the present cotton season began
on August l. and of this total probably
more than 100000 bales already have
been exported. On Monday more than
10000 bales were shipped out of Sa-
vannah direct to Hamburg making the
total of direct shipments to German
ports since August / something more
than 100000 bales. In addition, it is
believed that at least 10000 bales
have been sent to Germany by way of
neutral countries, and it is understood
much more will be exported within a
few weeks.
'Germany's purchases of American
cotton, according to trade authorities,
have been considerably larger in the
last two months than those of any
other foreign country except England.
On direct shipment France has taken
only $4,000 bales so far. while exports
to England have amounted to about
100000 bales. The Germans, it is said,
have been buying only the better
srades,and apparently are not bag
Cling over prices, for reports from the
south say the German interests have
been buying more aggressively in the
last few days than a month or so ago,
when prices were SIS to $40 a bale
lower than they are now.
NO large credits have been ar
rangedshere for the benefit of German
importers, so far as Is known, but it
is understood that some private cred
its have been provided and also that
many American exporters have set
plans afoot TO use their own credits in
assisting the movement. Remittances
from Germany have been coming in in
rather large volume recently, which is
one Of the reasons ascribed for the
steady decline in the quotation for
reichsmarks, which yesterday fell to a
new low record of about 40 cents
TO the mark.
However, it is understood that the
principal expedient used thus far in
financing exports Of cotton to Ger
many has been credits secured by Ger
mans in neutral European countries
Germany, according to reports, has
been exporting raw materials and
some finished goods to the Scandina-
Wan countries and to Holland, and in
rot fhnqa
which have been used in the United
states. The volume of business done
in this way. it is said, has run into
many millions OF dollars and has al
lowed German importers to buy goods
here, chiefly cotton, without suffer
ing unduly on account OF their de-
preciated exchange.
Most of the cotton forwarded Il
Germany and to the European neu.
trails has not gone through the port o.
New York. on the contrary, the greai
bulk Of the business has been moved
from Galveston, New Orleans and Sa.
v9nnah. where it is received directly
from the big southern spot markets.
"The rise in cotton prices has beer
phenomenal during the last month
and the advance has reached its great
est momentum during the last tel
days At Galveston. Houston, Dallal
and Fort Worth, the price rose yes
terday 10 40il cents a pound. equal Il
s20l.25 bale. On October II the pric
at those places was 361s cents
pound. or s1s2.25 a bale. At the othe
leading southern points the prices yes
terday varied from 36l5 cents at Mo
bile TO 3S15 cents at Little Rock an,
80 cents at Memphis. At New Yorl
spot cotton yesterday was quoted a
slightly more than 3s1z cents poun,
for the standard grade of middling up
land"