The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-03-08
TRADE
is CONFUSED
Amendment to Lever Futures Act by Limiting Con
tract Deliveries Chief Cause-Moderate Gains Re
corded, But Spots Quiet and Business Light.
Weather Better.

determination Of the financial interests
TO bring ii about through restricted
credits, Advices indicate that steps
have already been taken looking to this
while continued firmness in grains and
provisions. advances having taken place
crease the inducement to increase pro
duction of such in the belt and thereby
help reduce cost of growing cotton.
Export movement continues light and
there seems to be slow progress in get
ting more ships, but it has Just been
announced that Great Britain had lifted
the bans, or would do so at once, OH
importation of all raw materials. Pend
ing the signing of the peace treaty
there seems no chance of more thai
slow expansion of the export move
ment, for a variety of troubles seem
to hinder increase in consumption both
in the United States and abroad. The
statistical showing continues bearish,
but there was his week a slight actual
decrease in the visible supply. the first
in a long time. Spinners continue to
take sparingly and the seasons total is
1927, 900 bales behind ay ear ago.
Speculative Features Few.
Because of conditions there were few
speculative features and trading was
light. First, there was the fact that
the affair had been sold to a standstill
n those who were bearish did not
seem disposed to continue their pres
sure, due to failure Of holders to get
pantcky n a realization thai prices
were below cost of production. The
holiday then induced drawing in of
lines, while the change in the contract
brought confusion.
In old contracts the market touched
Its lowest level on the first day of the
period under review, May in New York
selling at 2O.S5c, just IS points above
the seasons bottom. New-crop months
were not off in proportion. But litte
Improvement came before the holiday
and the trading interim, as the reac-
tlonary trend in the stock markets, a
result IN a measure of the domestic po-
htlcai situation, which did not help gem
eral business. The upturn during the
rest OF the period was 100 points from
the bottom for May in New York, but
fall months did not gain so much.
In the new contracts premiums on
the first day settled around so points
for May and a little less than that for
July, but they narrowed Friday to about
5O n OCtobers were only about 80.
The decreased premium on the new
style was attributed to the fact that
~lliquidation Of the old must be finished
oy May and fear of some squeezing
Of shorts by longs.
1t Is out of the question to undertake
anything like definite opinions on the
market or its probable trend, pending
more experience with the new contracts.
There is, however, a feeling that spots
and futures will draw nearer together,
with the trend of prices largely deter
mined by the demand for spots and
the character Of weather for the ensu-
ing several weeks. The bearish statistics
all been taken into account long
since, although they might possibly be
given fresh emphasis II the final re-
port on ginning, due about March q,
should come Unexpectedly high. 1t was
reported Friday that a private bureau
was out with figures of about II, $50, 900,
which about approximates average ex-
pectations for the official report. Such
would hardly exert much effect on val
ues.
News from the goods markets con-
tinues rather colorless, although there
is scarcely so much pessimism as there
was some tim ago. The Improvement.
such as there is, is slow, while labor
troubles are still present. General BUSH
ness is mending, which will help de-
mand for cotton goods, while the ap-
proach of the time when shipping will
pc more plentiful naturally stimulates
nope OF foreign buying. In the opinion
of many observers one of the best
things which can happen to stimulate
business in the actual will be for the
trade to a v a prolonged period of
stable speculative markets, even If
there be no change from ruling levels,
1t is hoped that this will be one
Of the consequences of the new contract
basis Such a state or quietude would
perhaps be welcome to those who are
in charge Of the propaganda for re-
ducing acreage, for they fear the eff
fects of any sharp advance at this
time.