The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-15
MONEY TIGHTNESS
CAUSES SETBACK
Efforts to Check Speculative Activity Induces Lqui-
dation, But Spots Hold Well and Turn Tide.
Freezing Stops Production-Opinio Divided.

nounced determination 20 stamp out
some OF the radicallsm in the country
stimulated optimism, but II lost its ef-
feet IN the face Of developments in the
money markets, The ending Of the
strike OF longshoresmen stimulated
hope OF enlarged exports. so long held
up, but there is stlll more or less con-
Germ as 20 how soon the miners will go
back to work. Moreover, there are
other big labor matters to be adjusted,
and the fate OF the peace treaty is
stll TO be settled, which Is so closely
interviewer with the future Of business
with the foreign countries. The sue
cess OF the senators IN defeating the
wishes Of President Wilson as to Sec
ton 10 OF the league Of nations pact
discouraged expectations Of early re-
sumption OF business with the enemy
nations and added TO some OF the mar
ket uncertainties.
Fluctuations Erratic.
Keeping track of price changes dur
ing the period was enough TO keep any
one busy, for sentiment was well d.
yided and they came rapidly. Trading
was lively enough, although at the
lofty levels many people showed dis
position to be more conservative. The
belief hat the short interest In spots
had been to a large degree eliminated
and the height TO which prices had
gone caused many to. look for some sort
Of reaction. in spite OF the continued
wide discrepancy between spots and
contracts. There was less confidence
in n reaction Of consequence than an
assurance that the top had been reach
ed for the time being, II not for the
season. The idea that Initiation had
not escaped cotton was more general
and It was given emphasis when talk
Of deflation by elevating interest ana
discount rates spread. The rumor that
the Bank of England was contemplating
putting It's rate from ak 70 seven per
cent figured a lot in the big break Of
Wednesday. and failure Of the report
to be confirmed next day helped boost
values back. However, II H. not yet
too late for some steps 70 be tAkqn
toward this end, although II H. seriously
doubted whether this will shake the
determination on the part OF the South
ern holder TO get his W figure for
the rest Of his crop. II Will, however,
help to make the market q tw~o-slded
affair and lessen tho chances OF any
pronounced upward movement rom
levels that already have reached the
acme OF expectations entertained by
even the most radical.
The movement has been lively enough
to the ports, but only within the last
day or two have ~ClearanCes begun 10
increase. Stocks at ports are large n
there is every reason to expect tnat
tADbENh VIII NC AdihN iithh ~" Nf
though the visible supply continues 70
gain on "A year ago, The consumption
In the United States during october
topped last october by more than lOO,-
900 bales, but the total for the season
to date Is still behind, Whether the
high cost OF raw material will seriously
interrupt consumption remains TO be
seem but the liberal purchases 70 iar,
although movement from the belt ts stilI
slow, may encourage n very SLOW ~
titude toward taking the low grades
stu TO be sold.
In Great Britain trade is excellent
and has been helped by the continued
rise In silver, but movement Of cotton
to Germany continues hampered by
limited credits and the depreciation In
exchange. There seems plenty OF rea-
son for expecting steady expansion N
that direction, hut time alone Will tell
how much the high prices viii hamper
Il. Financial troubles are world-wlde
and the mendlng process is necessarily
slow. Sterling sight exchange was
quoted at 41iA Friday while German
| marks were down n 2.6b, both the low.
est for the week, and with enlarged
exports chances are that both will work
even lower.
II would seem to be a time when eau.
tlon Ia advisable, even on the part OF
the man who has cotton for sale, as
the mere holding OF cotton of the mar
ket viii not necessarily force values
! higher, especially from ruling levels,