The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-19
BY GEORGE WILLIAMSON,

Some interruption TO the upward
movement Of cotton prices was a our
ing the past few days, although 1t ap-
psrently was only temporary. This
merely served 70 give the rampant ou,ts
= breathing spell and 30 far as can be
told now did not dampen their en-
thusiasm much. The October position
in New York on Monday sold as hiE
as IS. 70, dipped 10 1895 on THURSDAY;
but before the close Friday had sold
hack as high as as as. The reaction
thus helped 10 clarity the speculative
atmosphere a BIT and 20 better the al
fair from a technical standpoint.
The net change in quotations In New
York was an advance Of 40 TO 50 points,
while in New Orleans there was a de-
cline OF q points on July, but gains on
other positions ranged from ~ to 60
points. One Of the features NJ the past
day or so was the narrowing Of differ
c between the near and distant po-
Sitions. evidently rejecting a feeling
that ONE Of the existing difficulties OF
getting the raw material to the mills
will be removed after a time n that
consumption will take ARE Of all the
prospective supply before the year
passes. In the spot department quota
tions were a little irregular. changes
being from nothing 10 gains OF % points,
middling uplands ranging from $3.50 to
35.l5 cents.
Before the bullish fever had been OK
hausted the trades attention seemed
TO be directed chiefly at the promised
enlargement Of demand as a result OF
lifted emhargoes. There was less CON
Germ over the crops condition. for
weather had improved and advices from
most everywhere told Of hetterment Of
prospects. Fields were getting into bet.
ter shape and there was subsistence OF
boil veevil fears, for the hot sunshine
was holding them In check. But AS
usual many eleventh hour buyers APP
peared and thus brought the rise to Its
elimination after the improvement had
set in. There were lots Of people tax
ing profits and getting ready for an
expected reaction. for caution had been
advised tor several days In conservative
quarters.
Body Blow Required.
1t required a right severe body blow.
however, to bring the traders to see
that II was time for some caution. The
warning Of restricted demand for the
actual and futures getting above parity
with spots had not been taken serious
~, although II had encouraged many
people to draw tn their lines and get
ready for a possible storm, The mid
month condition reports were not suf-
ficiently positive 10 occasion action
either way. while the bearish report or
consumption Of cotton In the United
States during June was not different
from what was expected.
Sharp declines in foreign exchange
proved the signal for what many had
anticipated. for IL reflected conditions
that the averaEe person for one reason
or another had overlooked. While ad
mitiedly due to the heavy buying oi
materials In this country for those who
need them so badly in Europe. the
bills OF payment having accumulated
faster than had credits over here. 4
meant that further buying would b,
seriously Handicapped unless something
be done to establish larger credit IA.
~ciiities on this side. In short. the de.
probation OF the foreign money wa'
such that the sellers on this side mus.
take that into account In making tn,
price at which they would supply tn
needs Of their foreign customers. TIL,
decline reached its elimination for tn,
time being on Thursday, when pount
sterling 61-iav commercial paper va
quoted around St20. which compare
with "a pre-war normal OF somethinl
near Sass Such d decline was Yin
~precedentpd and meant that somethin
aver $50 q bale must be added to tn
selling price to cover cost Of erehang,
French exchange wal similarly veal
while the Germans were in an eve
worse plight, II being figured by som
that II would cost the German spinnt