Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-02-04
WITH THE COTTON GAMBLERS.
Review Of Weeks Operations in New
Orleans.

OTt6dH6s
There is not enough spot cotton
moving anywhere In the country to
amount to anything.
Cotton prices, as is generally under
stood, are supposed to be fixed on the
exchanges.
For instance If one gambler sells
big lot of cotton to another gambler,
and is unable to deliver in case he is
called upon to 90 so, he makes good
with a margin that is satisfactory and
the price of spot cotton that day Is
supposed to be the price at which the
gambler sold, plus the margin he had
put up to get out.
In ordinary times the spot market
follows the prices thus fixed by the
gamblers, and the farmers sell their
cotton accordingly. 1t is not 30 much
d question of what cotton Is worth as 1t
is what the big gamblers bought the
futures for.
Since the farmers quit selling the
gamblers have been going on with the
monkey business just the same, deal
ing in hundreds and thousands OF bales
of imaginary cotton and assuming the
gambling transactions to be the real
AS a general theory if the gamblers
get futures down, farmers rush to un-
load the real cotton, and the enect ls
the same as If the price had been fixed
by supply and demand instead OF py
gamble.
Since the farmers have been more
Indifferent than ever before In the MS
tory of the gamble, the gamblers nave
been all the more violent in their price
fluctuations in the hope Of thus i'm
pressing the farmers. They have been
hanging out all kinds Of prices during
the past week, changing the figures as
much as three cents pound WITHIN
few days; but the farmers have not yet
been inclined to take the matter serl-
ously.
The gamblers, of course, take them
selves very seriously indeed and nave
their transactions written up as though
everything were in the best or good
faith. Here is story Of last weeks
fluctuations as sent out from New Ut
leans. It Is given out in dead earnest,
real facts are unable to see anytnihs III
it except to laugh:
| New Orleans, Feb. Met charges
| in the price of cotton last week were
unusually narrow, the old crops gain
| ing 5 to 62 points, while October. the
one active new crop option, lost
point. In spite Of this, price move
ments were wide, the range being
from 223 to 306 points. At one time
the trading months were lS5 10 ieI
points over the close of the preceding
week and at another they were SS 10
leo points under. Bear pressure at the
beginning of the week forced wide de-
clines, much long cotton, lon paper
only], coming on the market, wnlle
llater on the announcement or lower
ocean freight rates by the United
States shipping board was factor OF
the greatest strength.
! The lower rates on ocean freights
was easily the most important iea-
ture of the week and following them
were reports of an increased spot de-
mand and more business with poth
England and the continent. lGettlns
to where they must get the real cot
ton or shut down the mills]. Next 10
this in importance as bulilsn lnnu-
ence was the movement 10 en-
courage owners to hold old crop cot
ton and to bring, about a reduction IN
the acreage Of the new crop. Az ens
end of the week the market had good
Iundertone but was inclined to sag un-
der fears regarding impending laoor
troubles at the mill centers.
This week the mill situation Will pe
closely watched and bearish traders
will make much of everything point
| ing to reduced consumption. At the
same time, bearish reports in this di-
rection may be offset by the way for
eign demands shapes up, as spot peo-
pie were claiming at the end of last
week that the spot demand was even
tendirs to the lower grades tcouldnt
get cut the real cotton and had to set
tie balances with dogtail] and some
brokers were complaining that 1t was
easier to find buyers than sellers.
Should the new week open on re-
ports of much rain in the belt, the
long side would be favored since more
moisture would interfere with the
movement Of cotton and would hinder
still further the preparations for the
new crop. 1t would not be surprising
| to see market features Of importance
develop out of the agitation for re-