The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-02-01
az oEoRaE wILLlAMsoN.

"AG@AFHSSAN
More strength was displayed by the
cotton market during the past week,
although much of it was merely neg
atiye. The bears found their success
IN pounding prices in the contract de-
partment failed to shake out much
raw material or bring about any panic
among holders, so even a promise of
certain things served as a signal for a
lot of short covering. knowledge Of
h fact that at the low levels, admit
tedly under the cost Of producing cott
tor. and far below what the crop of
1888 cost, spinners were quietly alb
sorhlng contracts as hedges against
their needs Of raw material also helped
70 reverse the trend of prices. Certain
developments closely allied with pros
poets for exports, big reductions in
ocean freights in American bottoms
and expectation of this extending soon
10 those under British control also
supplied occasion for a more favorable
attitude toward the bull side.
AT the crest of the recovery prices
stood approximately 300 points over the
recent extreme lows, the May position
in New York selling at 23.17c, COM
pared with its season low of zoe, Some
disappointment at the slowness with
WHICH buying of spot cotton was pro-
ceeding and the fact that the bears
were still finding some comfort in I'M
settled labor conditions induced fresh
pressure, and it required only a few
days to wipe out a goodly part of the
upturn. The nervousness in the. future
department, with its disturbing influ-
ence onAresumption of business In the
actual, together with the growing anx-
tety among holders as to their ability
to get for their unsold stocks their
ideas Of value tended to arouse more or
less antagontsm against speculative
trading and in some quarters there
developed a disposition to undertake
steps for curbing or f%orbidding It en-
tirely. However, this was regarded
generally al merely incidental to the
success Of the bears in pushing prices
down when the South was carrying so
much unsold cotton.
One feature of the enews, but prob
ably not a very important direct In
fluence on the course Of prices, was
the movement to restrict acreage for
another season. From practically ev-
cry section came advices telling of sem
timent In favor of such, and plans
for bringing such about received strong
impetus, since 1t was generally agreed
that prices had gotten below cost Of
production and me effective way to
check the decline would be to lay the
foundation for q moderate crop next
fall, Prospective plans differ but little
as to how much effect the propaganda
is likely to have on immediate values
and On how much area will be planted.
Ocean Rates Lower.
A more important influence on val
Nes was that of ocean freight rates.
There was more encoura cement from
that direction than from any other
source and progress toward a return
TO normal conditions was considerable.
First came the news that the British
= government had reduced rates about
: Sc per cent to all parts of the world,
but this applied to things which are
not Of large bulk. thus excepting cot
ton, so the market, after squirting on
the news, reacted Later, however,
came the announcement from the
American board of shipping control
that, effective immediately, rates for
vessels under its control would be
sharply lower and that the supply Of
bottoms would be greatly increased.
For cotton the reductions Appropriated
SIS a bale, or about Sc a pound. While
the new rates are still high compared
with prewar standards, they increased
probability of larger buying for export
and the news stimulated support from
bullish interests and served to stimu-
late buying by the %sninners against
their needs of raw material 1t was
felt that the drastic cutRby the Ameri-
a board would hasten similar action
by the British and thus would probably