The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-27
COTTON MARKETS
Sharp Decline Early, But
RumOr of Reduction in
FreightS Causes Recovery.

Monday afternoon, Jan -
conflicting influences were al work
IN the cotton market today and the
result was erratIr fluctuations First
there was a fairy steady opening hui
encouraged BY the announcement from
the department OF agriculture at Wash
lngton that reduction OF cotton acreage
was highly important il lower prices
were To be avoided for the ensuing
year, bears got busy and pounded prices
merCleSsly. The dip extended over 100
points IN a short while and carried
quotations within striking distance of
OF the lows Of the past week. Then
came a period OF hesltduty and leSs
pressure, only to be succeeded later by
a moderate upturn based on uucon-
trmed adviceS that the British ship
ping board had cut ocean freight rates
to per cent This later news was re
garded as highly important. hut the
thief surprise was mat the cut should
be SO drastic, assuming the correctness
OF Their umor. However. II Still left
lreights considerably over the prewar
normal,
Liverpool came at first about as due.
then sold off some, but II was not until
just before the close that weakness was
most marked, final tone being called
barely steady and the list 81 to . points
net to the good. An advance OF s.
points was due The distant positions
were the weakest. Spo;s were marked
up Sc points, good middling to is, 40d
and sales 1000 bales. Although there
was little news early to explain the
weakness, II wa thought later that no
doubt the reduction in rates was a fac
tor, for such would naturally be bear
lsh on values over there. 1t was also
announced that beginning next Monday
trading in Liverpool could be done as
far ahead as September under the new
contract basis, although no details Of
the plan came.
In the domestic markets there was
little that WAS new and sentiment was
divided between those who thought the
decline had been overdone and those
thinking the continued lack of SPOT
demand would result in further weak
ness in spots and thus give bears more
chance Of breaking prices. There was
little assistance shown when some i'm
portant selling came shortly after the
opening, prominent spot interests being
credited with doing some of it, while
New York wires said the South was
again selling, The statement from
Washington received credit for inspir-
ing most OF II, and the professional
crowd willingly contributed its share.
for at the moment the reactionary
trend prevailed in all the markets, es.
pecially in grains and provisions,
The May option opened at q zoe,
touched as high as 2l.33c, dipped to
Il. lbc, recovered TO Jne previous Hlgl
and then without warning started to
slide. The lowest point was 2O,2Oc,
there being but little Cneck to it Oh
the way down. However, selling sub
sided, and when the freight news came
quick recovery followed, and il extend
ed until May sold back up to 20.S3C,
which seemed to satisfy bulNish hunger
pending confirmation Of it and some
apparent effect on demand for the
actual,
Spots continue without activity and
at some of the centers further reduc-
tons were made in quotations. New
Orleans reduced middling 80 points to
&c. while Augusta cut it % points to
"a. 75C, but business at neither place
amounted to anything, and it still re-
mains to be seen what the attitude
of holders will be regarding meeting
the lower quotations. The question Of
cutting acreage is becoming live. and
there Is appareRtly being created strong
sentiment for a cut, but more or less
doubt exists as to whether it will be
done, and this will continue until the
farmer shows what he will do, not
promise.
Futures unchanged to 80 points lower;
tone very steady.
New Orleans closed II to 40 points off,
tone steady, Spots were cut so points,
middling to 27c, with sales 2l7 bales.
Liverpool is due to come Is points
higher,
In the local market sales were only
900 bales and quotations unchanged,
middling 29C.