The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-25
BY GEORGE WILLIAMSON.

Q SEONOE MSONs
Deflation spelled with a big u fea-
tured the cotton market during the past
week. Bears were rampant and with
blood on their paws and the smell of the
defunct bulls on their mouths, they ran
Wild and had an old-time experience Of
smashing prices regardless Of rhyme or
reason or the certainty that sooner or
later they must consider the man who
owns the actual and will inevitably
have some say as to the price for which
it will be sold.
The decline was not spectacular, nor
was 1t attended by any fireworks or
surprises. 1t was a Steady move
through the bullish lines, or those WHIT
unfortunately held long contracts, and
the widespread liquidation of these was
helped by considerable short selling by
varied interests. The bears took ad'
vantage of the idea that commodities
were due to 60 lower. and seemed to
vent their entire resources on cottoA
for the time being. The combination in
their favor was a strong one, certain
developments inducing the spihners to
lend hearty cooperation. Pessimism,
while perhaps much of 1t manufactured
only for immediate use. seemed general
and proved a powerful factor.
The maximum of the decline-for the
time being at least-was reached Fri
day, when March touched 2O.95c, May
zoe, July Is. 15c and October lS,02c in
New York, For the old crop months
that represented a decline of approx
mately 1000 points, or $50 a bale, from
the seasons top, recorded Sept. 3, when
the government condition report point
ed to a crop of II, 1877, 900 bales. The
reaction notion gained sufficient
strength to encourage short covering
and trade support, chiefly reflected in
demand for July and October, and some
recovery followed, For the period IN.
der review contracts in New York lost
1893 to 169 points, while New Orleans
ularity continued, nearby contracts IN
the Southern speculative center being
higher than in New York, which had
little definite explanation.
Spinners Buy Little. 9
The dominant note in the harmony
of the bears was that spinners were in
the midst of reimbursement to postwar
conditions and we're not receiving or
ders for finished material in sufficient
| volume to cause them to be ready buy
ers of cotton, especially seeing as they
do the ease with which values nave
been depressed. They were facing Ia
| Dor troubles and the usual unsettling
effects on all lines of trade and indus
try. with much to encourage expecta-
ton of lower prices for the raw material
they will need later. The domestic
mills are well Supplle TOT a Tune, anu
the export situation has improved SO
slowly that the expected foreign de-
mand has been disappointing. By some
this latter Is attributed to the delay
in getting freight rates stabilized, hut
| others contend that such is not as
Neighty a factor as the slowness with
which orders have reached the manu-
facturerS.
Liverpool displayed marked weakness
and some advices early in the week told
of spinners reselling raw material. Re
| ceipts of cotton over there have been
! light, but the mills have been running
on short time and labor unrest has
threatened them, 1t was announced
that in a few days the curtailment
would be reduced by 10 per cent, but
| there has yet to develop n dispose.
ton TO buy much on this side, although
this is expected to come in volume later
| on. The process of adjustment seems
slower than was assumed, and in the
meantime bears have taken advantage
of it, Getting freights to a stable basis
and the success or failure of Southern
holders are expected to determine lr
a measure what the foreigner. VIII &c
about buying In other than hand-to'
rAOuth way. Quite naturally the sor'
OF start the new crop gets and how m
South acts as to reducing acreage VIII
also figure not a little;
In addition to the lack of demand toi
the actual and the development .whicr
seemed to forestall promise that
would be different soon, the bulls nae