The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-05-17
COTTON IN
LARGE DEMAND
Market Displays Strength When Big Interests Buy
F~reely-Trade Advices Very Encouraging and
Better Outlook for Export Observation-Disclosures
Mixed.

Since that time conditions have been
somewhat improved, although the prom
Use of further showers over the Week
end did not encourage bearish feelns,
There were no important acreage
guesses, but the early coming OF the
first report on condition directed at
tention to probabilities in that direc.
ton, With the prospective boil weeNiI
menace and a feeling that acreage re-
duction will be between 10 and 10 per
cent there is a growing notion that
current values are very reasonable ana
the bull campaign is based on logical
grounds. However, the advance mas
been rapid and the technical position Is
not so strong as ii was, which has ell
couraged taking of profits ana hperal
selling Of the actual.
Fine Spot Business.
Sales at most centers have been as
large as offerings would allow. In the
local market IS, 900 bales changed hands
and the unsold stock reduced 10 lol'OVV'
which compares with 1876, 900 a year ago.
The cotton most wanted was staples
but some of the other kinds have also
been moving more freely. Quotations
have hardly kept up with selling prices.
according to some Of the trade, and
the domestic spinners have stuck to
their policy Of buying only moderately
The exporters have been getting the
bulk of the orders and with plenty
of ships soon, promised to start by
next month, there ought to be a Dig
expansion in c~learances. To TINS time
exports have increased but little ana
the season total is but little more than
1900, 900 bales, which is about 56O,OOO
behind two years ago and Gao, 600 larger
thar a year ago. The total for the
year will hardly reach publish predic-
tons, but the outlook now is that the
| rnntrav apf will ha continuous when III
once gets started, provided something
does not happen to restrict filling the
vacant places in various parts OF the
world.
There are some people who expect
crippled credits to become a FACTOR soon
er or later, but as yet there seems
nothing to hinder free buying. Prob
ably the deficiencies in supplies now
are so great INC needs so keen thai
ii will require time for restricted credits
to be important. However, 1t Is prac-
tically certain to figure sooner OF later,
although prices may work higher be-
fore it asserts itseh.
Trade advices were optimistic and
one report during the week had it that
a representative of the French govern
ment commission was over here to puy
heavily Of goods and raw material, bu'
so much was said about this by the
bull crowd that many people we're dis
pOSeQ 10 ulSCTeUlI us dutHellISllS' Nv"
ever, 1t is believed that one source OF
the buying in the market has beer
the foreign governments as representa-
tives of the needs of their people.
The American spinners are credited
with being very busy now, but they
are slow to buy raw material. Tit
; buoyancy in the stock market has beer
a factor in cotton, for it was though
to denote the rising wave OF optimism
as to general business n the influ
ence Of inflated values in nearly ever!
direction. Pending he bursting OF thu
bubble or diminishing its size, ther'
seems little occasion for questioning
the right Of cotton share in tn
strength,
The statistical position is perhaps OF
the eve of turning more bullish. bu
there Is a tremendous visible supply
The ability Of the South to carry tn
burden, however. has been proven ant
there seems small reason for thinkin,
now that 1t can not continue to do Sc
, at least until there is assurance OF
big Weld. The increased financial in
, dependence of the section Is a facto
| hat must be reckoned with, especiall
since the experience Of the past sew
, sra months and plans nave been mao
, to further finance it's own operation
8 through the facilities OF the federal re
: serve system.
Weather and crop conditions will b
potent influences from now during tn
rest of the season and will largely de
. termine the trend of prices.