The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-12-13
MONEY CONDITIONS
BRING DECLINE
Foreign Exchange Rates Sharply Lower While Tight
ness in This Country Increases-Crop Estimate
Larger Than Observation-Disclosures Narrowed

her AZ top prices However the spread
OF the notion that speculation Is 10 be
discouraged through tightening the reius
OF money and reduced expectations Of
buying for foreign account acts as d
damper on hullish enthusiasm, even
though it may not bring decline Of con-
sequence
The market from the trading stand.
point was not a large one, for neither
side was disposed to go far from
shore. Highest levels were recorded
after the census report on ginning to
Dec. came smaller than expected
and there. seemed prospect for ending
OF the strike. Delay in doing this, how
ever, turned the tide. although a Sc
we're spell Of weather helped to defer
tho break. When the estimate came and
exchange was declining rapidly, offset
was afforded for ending Of the strike,
but most Of the weakness was in near
positions. Finals In the New York
market were declines Of $40 to rs points
while in New Orleans they were from
60 off to S5 up. Spot quotations at
the leading centers were from 80 to $50
points under the previous weekend.
Spots Less Active.
Activity in spots was reduced, al
though In the local market 1880 bales
changed hands. Reports failed to say
that holders were getting anxious, but
demand was Tisibly smaller and the
absence Of short interest apparent Dis
counts on the lower grades increased
and this Is expected to be a feature
throughout the remainder Of the sea
son, Some wires said that small lots
OF cotton were to be sent to New York
for delivery purposes, which perhaps
helped encourage liquidation in the near
months, but 1t remains to be seen how
well shorts therein will fare when they
attempt to protect themselves, for spots
are still at large premiums and holders
seem confident. The contest between
the buyer and the seller promises to be
an interesting one, but 1t is expected
that activities until after the turn of the
year VIII be small. In the meantime
the spinners are working on the high
est basis Of profit ever known and they
can hardly be expected to lend much
aid to efforts to get raw material prices
down, lest such encourage a clamOr for
reduction In prices for finished ma
terlals. The domestic spinner has per
hnps bought enough cotton to protect
himself against his goods contracts and
will hardly want to see prices down
much until he sees fit to enter the
market for additional supplies, How
long he will wait is guesswork, but the
South also is in position to do some
waiting.
The fate Of the low grades, which
constitute the bulk Of what Is left, is
furnishing material for all sorts OF
speculation and guessing, but nobody
seems disposed to do much with them
yet Their value is problematical and
II remains to be seen how soon and
at what levels the mills will take them.
II Germany We're in position to buy
freely, there would probably be good
demand for them but this outlet now
does not seem promising, as their credit
Is so deprecated and raw material costs
are well nigh prohIbitive on a cash
basis, with marks worth around cents
In American money.
The statistics are still favoring the
bears, although spinners are taking
freely. Hester said that movement into
sight for the week was 100000 bales,
compared with 1893 900, while he esti
mated that spinners took of American
| $50 900 bales against 100000, Total in
sight Ia 5,9l2 900, against 5,475, 900, while
takinEs total 4,S290O0, compared with
4,307,0 900, ..
Visible American gained 10000 bales
compared with gain of 81, 600 last year
for the same week the amount now
being 432S,0 compared with 1901 600
OF all kinds there are visible 5526,000,
against 4,24500 year ago.