The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-02-08
LABOR UNREST
HELP TO BEARS
Hammer Prices With Success After Temporary Bulge.
spinners Buying ~sparingly and Some Mills Shut
Down-Holding Movement Shows No Signs Of Di-
m~inishing.

be lifting of the embargo on shipments
to enemy countries, but found no sat
~isfactory response and there seems lit
tie likelihood of business in that direc-
ton for a long time yet. First peace
must be signed, and after that other
conditions will no doubt have TO be
met, as none can say what terms the
allies win exact as to allowing raw ma
terial to go to Germany and her erst-
while allies.
While the bears were finding com
fort in conditions which seemed to favor
lower prices those who still pinned
faith to the bull side saw progress be-
ing made toward a panacea in the
shape of reduced cotton acreage. The
propaganda for a reduction Of from 20
to 80 per cent apparently was meet
ing with enthusiasm in nearly the en-
tire belt. 1t was of small effect for
the moment on speculative values, but
the movement was just getting under
way and the design was to not have IT
influence speculative values. The plan
calls for achieving its ends through sew.
eral channels by s%tiffening holding OF
the actual and providing for future m
dependence by increasing the supply OF
home necessities so that gradual mar
keting can be adopted as a fixed poEcy.
The reception already met by the Ell
fort to have the South forestall disas-
ter by cutting its acreage indicates that
one Of the influences for the next few
months will be that very thing. The
response to be made to the logical rea-
o n given for the movement n the
attitude of holders as to granting or
refusing to make concessions to buyers
will go far toward determining the
contest. 1t is the judgment OF the
best minds in the South now that II
prices 10 not advance sharply from rul-
ing levels there will be a sharp cut IN
acreage,
Spot Holders Have Key,
What the immediate course of prices
will be is pr~oblematical, of course, but
there seems good reason for thinking
that bears have about exhausted their
ammunition and will find more resist
ance to further hammering efforts.
They have not yet broker the detense
of the holder and distress signals are
by no means numerous. There Is no
scarcity of raw material for every pos:
sible demand for months to come, and
statistics continue bearish; but prices
have gotten below cost of production
and the South is by no means pauper-
ICED. The fact that spots are being
held at quotations far above the level
| to which contracts have descended in
dictates that the bears have only won
part of their fight. The short interest
Is certainly a tremendous one, and a
day of reckoning must come sooner OF
later. The potential demands OF the
world for cotton are tremendous, sur
ficient to take every bale now held
while there is no absolute assurance OF
g, large crop this coming season. More
things than a mere cut in acreage are
to be considered, one of which is that
laborers are showing very little dispo-
sition to return to the farms, while
the mild winter Is almost certain to be
a stimulant to boil weevil activity dur
ing the coming season.
The price level has declined until II
Is believed to be regarded as reason
able, even by those who are clamorins
for a reduction in cost of commodities
the manufacturers profits being sur.
| flcient after their reduction of finished
goods prices to enable them to pay
quotations and better for raw material
There are many reasons for expecting
revival of demand a little later. THE
mills are poorly supplied and must buy
raw material If they operate their ma
! chinery, while 1t is conceded that. the
shelves of the world are as nearly bare
as they ever we're. The period of ad'
justment is not going to be a lasting
one and civilization needs cotton almost
as much as 1t does food.
The people who are carrying the
burden of spots are believed to holt
the key to the situation, provided theI
realize the fact and make use of thei
opportunity. They have withstood tn
worst of the fight and they can hav'
the major say as to what the rest o
the crop will be sold for II. common
sense and Judgment are used.