The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-28
COTTON Markets
Higher Market Encouraged by
Expectation of Lower
FreiQhtS.

market q prices worked inward to-
day, chiefly because there is widespread
expectation Of lower ocean freight rates
on cotton The report out yesterday.
which caused sO'le Improvement,
proved misleading. as the reductions
announced by the British shipping con
lrpl applied TO nearly everything but
cotton, But there came today fresh
rumorS OF further reductions by the
American board Of control as pplivd
10 shipments made in American bot
toms, which are expected to have con
siderable effect on the attitude Of the
powers having charge Of making rates
Tor foreign vessels II was stated that
Washington had ordered Il rate OF $3.50
a bale on cotton from Guif ports To
Liverpool which would compare with
"a recent rat" of S28, 50. However. there
was no official announcement and the
traders were disposed to be a hlt wary
Of taking action toward d~isCOuntiug
such good news pending something more
| definite.
There ts a general feeling that, even
If the rates have not been ordered re-
duCed, IT Is only a matter OF brief time
until they win be This will affect cost
of getting raw material to the foreign
mills and viii also make the cost "
getting their product to the consumers
IN various parts Of the world less, there
by encouraging buying and affording
BASIS Tor larger demand for the raw
! .ta l'u' me Nulll lbltl OF all OF TINS
agitation and Progress toward stabilize
'tun WIZ probably be to increase pros
poets for exporters getting into the
market aGd thus helping to tighten the
burden now hanging over the holders
in the belt
The speru'otlve markets today had a
distinctly better ono ard there was
apparently considerable buying for trade
interest Liverpool came better than
du" and AS the session advanced went
higher, closing Irregular at a net adj
vance Of ~ TO - points. Gables said
ih't Manchester advtCes We're better
ANA that spinners were calling consid-
"rahl- cotton Spots were marked Oft
b. points. good midd'iug to rs OSd, with
sales sue bales Receipts were -, 000
hnlee. including $500 American. Man
chester advised that offerings OF cloths
were 2"arcc, hut there was small in
qu'rI for yarns.
Moderate gums were made at the
oprH.ug ON this side and there was quite
am crratic market for the first hour or
go, traders seemingly being pretty well
0INlie0 IN thrlf Views. But when May
in New lrrk touched PIC more than
once Supuort improved and sellers be
came shy There was come buying on
the theory that the decline had been
oNerdoUo, while a few advices of delay
to crop work tn the Southwest contrib
uied to this feeling, The failure to get
Offer ~ the actual at anything like in
proportion to The break In futures also
increased Willingness to cover by the
SHORTS and t. absorption by the spin
ucrs,
The chief Incentive to the buying,
which MAS led 10y some Of tho large
spot pson.". was the talk Of low ocean
rates There was also a stCadier tone
y other speculative markets. which
discouraged hcarish feeling The May
option IN iht afternoon had sold up an
ILWl AE II VIC a YAHAtAFt fF NAaVlNF
-Nb points frUm the extreme low, and
there were some wires from the belt
telling 81 improved inquiry for the
actual, with holders firm in their refusal
10 make concessions.
Another factor OF some weight was
the rising c'amor throughout the belt
for reduction in acreage as a means
tn helm sustain values and q feeling
that there Is merit in buying at levels
which are admittedly near or under the
cot OF production.
Business in the actual was still very
small hut the indication Of some de-
ve'cptng 500 was not without its ef.
feet, II was confidently felt that with
the coming of stabilized freiEhts would
come more activity on the part Of ex-
porters and that the domestic spinner
would very likely also look with more
favor on raw material at ruling prices
Buying based on the freight news
Increased toward the close. helped nv
active short covering and the advance
became rapid, May sold up to 22,S2. n
| rise of 1872 points from the early low
and 1877 from the previous close. March
reached a maximum advance OF 200
polntR, as did several options in New
Orleans.
New Orleans closed 900 to 1855 points
higher, tone strong, Spots were I'M
changed but steady, middling 27c, with
sales lies bales,
Liverpool Is due to come SO points
higher
In the local market there was more
looking around than for SONG time, but
business was only i25 bales. Quota
lions We're unchanged, middling at csc