The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-15
az GEORGE WILLIAMSON


Efforts on the part Of banking and
financial interests, particularly the fed
eral reserve bank, to put some needed
check on speculative activity supplied
occasion for some setback in cotton, as
well as IN stocks and securities. That
the reaction In cotton proved as small
as Il did perhaps reflected indisputably
the small part that pure speculation
has had In pushing values as high as
they have been. However, there can
hardly be any denial OF the value of
some sort Of action looking to the avoid
Rnce of letting initiation run rampant
too long and put the situation In shape
for disastrous breaks later. That the
cotton market suffered as moderately
as IL did proved the legitimacy Of the
levels 70 which prices had attained and
was a tribute 10 the financial %independ-
ence and strength OF the producers, al
though time enough IL left yet for de-
velopments which might alter consid-
erably ideas Of what the unsold part OF
the crop is worth,
Most Of the reaction In prices, which
was more in contracts than in spots,
came Wednesday. the allowable limit
being reached Previous to that day
prices were without positive trend either
way, although weather conditions were
bullish aAd but for the favorable news
from the coal strike would probably
have sent them much higher. The
s~tringency in money as reflected in the
rising Of call money rates to 80 per
cent was the occasion for considerable
liquidation, but after the speculative at
m~osphere had been somewhat clarified
and some of the rumore circulated
proven untrue quick recovery followed
next day. Failure Of the spot markets
10 be weakened was a factor in the
hurried comeback, although fresh liqui-
dalton followed on Friday.
Finals for the week showed the list
net 10 the bad, while In New Orleans
losses were from so to 226 points. The
near positions lost least, as they re-
Elected the premiums Of spots and the
absence Of indication that they will
weaken. In the leading spot centers
middling uplands range from 3s to AZ
cents, which is from 100 points lower
to 30 higher than the figures Of the
previous weekend. Demand for cer-
tain characters Of cotton showed little
or no diminution, but volume OF bust
ness was similar and there was con-
siderable difference Of opinion as to the
probable attitude Of buyers as to the
lower grades. More or less revision OF
grade differences was had, hut the fate
OF the unsold portion OF the crop. per-
haps half OF It, is stu TO be determined
and on II will no doubt depend In a
large measure the course of contract
prices.
Freezing Stops Growth.
Weather for the period was mixed.
with perhaps the average ~unfavorahle.
Lots OF rain fell during the early
part, with promise OF a cold wave to
follow. But the latter failed to come
and a slight interim Of good weather
followed, after which a genuine cold
wave came, striking the western belt
Wednesday night and extending east
ward, reaching the Atlantic seaboard by
Friday morning, Temperatures went 10
freezing level and lower, putting an
end to the development Of the crop and
at the same time stopping all preeipi-
tation. The damage done by the cold
according to best posted authorities. was
easily offset by benefits thsrefrom, for
IN many sections the frost danger for
some time had not been feared. How
ever, II VIII be days yet before the full
eifectg OF the prolonged wet spell and
me killing frostH can be ascertaIned
y perhaps significant, however. h a
IL mas been some time now since much
was heard of the crop outturn beInv
much less than 10, 900, 900 hales the
iaeA having spread that while the raina
lowered grade serioualy they were aiso
probably Increasing the number az bafns
Industrial troubles occupie a his
paIt Or the attention OF traders and
nsIpeu 70 encourage conservation. 'rhe
nm stand taken by the government N
hahuihK the coal strike and Its an