New-York tribune., 1919-03-28
[ II d IL s strial
Cotton

Cotton prices recovered yesterday
in strong market. Old style con-
tracts were up 90 to 1O5 points at the
close, while the new deliveries gained
from 80 to 115 points. New style May
contracts at one time were more than
$6 bale above the low fgure reached
on Wednesday. Wall street broker
age houses, rsnresentng traders who
are speculativcly inclined, which had
sold cotton freely on Monday and
Wednesday, when the market went low
cr, bought back much of the staple for
their clients. This buying was "a con
tributing factor in the advance all
through the day
Market observers estimated that the
amount of cotton sold by these houses
for their clients in two days totalled
100000 bales. This cotton was bought
on anticipation Of an advance. When
it was sold on Monday and Wednes-
day active consumers were prominent
in buying it.
The upsw]ng of prices was attrib-
uted partly ITO reports of unfavorable
weather conditions in the cotton belt.
Frost was reported in Dallas, Tex,
while ! to 2 inches Of rain have fallen
in Florida. Georgia, Alabama and Mis-
sissippi. This will delay farm work
for the new crop.
Still another thing which was re-
garded as being big market factor
was q report of the Watkins Cotton
Statistical Bureau. This report gave
the indicated cotton acreage for 1919
as 81 1,177,000 acres. compared with ST.
073,000 acres planted in 1918, or S41
per cent, and the amount of fertilizer
used, compared with 1918, as "a per
cent.
Higher prices at Liverpool also had
some effect on the market. The clos
ing was 22 TO 80 points higher for
the near months and % to 26 for the
later deliveries.
Indicative Of the demand which is
expected to come from Europe, both
from the Central Powers and neutrals,
after peace is signed, is cable which
was received by a New York cotton
house yesterday from firm in Ham
burg. The cable came via Rotterdam
1t read: "Plcase cable condition cot
ton futures business. Intend taking
up business with you'
There are many things which must
be taken into nsidcration for a re-
sumption of business in cotton with
this part of Europe, observers of the
markets condition explain. Chief of
these are the financial and political
two-year credits must be arranged
here Central Europe is virtually
without cotton, whereas the United
States now holds about rs per cent
OF the visible supply, or the cotton
which is in warehouses; or ahoat. India
and Egypt both have short crop.
Cotton has not been moving abroad
in any great volume. Yesterday the
total was 3,434 bales, out of which l3S
the continent This made the total
3.354 1897 for the season, against g.
022,352 last year The buying which
has been coming from Liverpool is re-
garded as being accumulation by
people there in expectation of the
European demand after peace is signed.
Operating against large exports at
present IS tonnage, there being very
little freight room available for this
purpose. The disorganized foreign ex-
change market is also d factor
Growers have been holding their cot
ton in the expectation of receiving
higher prices. They have borrowed
money in the Southern banks, deposit
ing warehouse receipts for the actual
cotton as security for the loan. This
has brought about greater borrowing
from New York banks. The Federal
Reserve Banks now take care of much
of this class of borrowing, but never
theless bankers here say that their
lendings ~ dealers in the South on
this class of security are greater than
is usually the case in March.
Cables received from abroad on con-
ditons were contradictory. The Ian
cashre industry was said to be in a
deplorable condition, while in Man
chester there was said to be fair
business in cloths, although yarns
were offered freely
The local market for spot cotton was
steady and 80 points higher, at 28.3Oc
for middling upland compared with
27.40c the day before and 34.25c the
year before. There were no sales of
spot.
The range Of prices follows:
OLD STYLE
Wednesdays Year