The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-04-05
BY GEORGE WILLIAMSON.

Because of conditions ih the foreign
political situation and its widespread
effects in the entire business world
pronounced opinions in the cotton
market were lacking during the past
few days. The course of adjustment
is still involved and there is small dis
position to venture far either way.
While optimism was stimulated by
some things, others tended to restrain
it. Thus there was added strain on
those who are carrying the burden Of
the unsold portion of the crop at a
time when other things also tend to
encourage selling. II car hardly be said
that any of the defensive lines were
broken TO a serious degree, yet signs
were not lacking in some directions
of fatigue and a willingness to accept
almost any price offered for certain
kinds of cotton.
On the surface there was improve
ment, n contract values assembled
moderately, yet in the spot department
tions finished the review period slight
ly reduced at some of the centers.
Some advices told of basis being low
cred, especially where they had been
so abhormally high IN the better
grades. An encouraging feature vas
that there developed sale for some
kinds that nave for so long been taboo,
which was regarded as significant and
perhaps the beginning of better times,
In New York new contracts finished
the week at gains of 96 to ~ points,
while the old gained SIS to 80. New
new, while the old finished 10 down
to IS up. There was notable lessening
of activity in old contracts, showing
that interests therein are being re-
duced as the time limit for them draws
near except where actual deliveries are
contemplated or expected, In New
York one feature was that the May
option increased it's premium over July,
but this was checked as the former
reached a level which was thought to
make possible deliveries OF some or
the better grades. In fact, some re-
ports had it that such deliveries were
more han probable.
Although there was plenty in the
news coming from Europe to cause
uneasiness and anxiety, at the same
time one of the chief mainsprings OF
hope was that actual peace was not
far hence, Reports were so confused
and so much was mere guesswork ana
assumption, that traders could not get
themselves to feel sure of anything. 1t
was too difficult for them to diagnose
the real situation, so they We're dis
posed to be cautious. The speculative
position was such that further rise was
dependent on visible progress toward
peace and the opening up of business
with all the countries now shut OH,
The upturn had reduced the specula-
tive short position and differences be-
tween spots and futures W. too mar
row to work for further rise, except 1t
be predicated on demand for the raw
Z material or some serious menac to
the start for the new crop. In neither
direction was there sufficient basis for
much activity.
The lifting of embargoes on ship
/ ments to certain countries of Europe
boosted hopes, but their aggregate eff
feet was small and were not followed
by action as to the larger ones, this
perhaps being left until after peace
shall have been signed. Moreover,
there was an idea in circulation, find
ing acceptance here and there, that
even after Germany and Austria are
allowed to get cotton there is no tell
ing how conservative they will be about
buying, depending as they do to a large
extent on conditions in those countries
and their ability to sell the finished
products. However, the predominant
notion is that once those countries can
buy cotton and have it shipped soon
they will do SO on a liberal scale.
The thing which encouraged bullish
feeling as much as anything else was
the increased demand for raw material
at Liverpool and adviees telling Of
larger demand for cloths and yarns at