The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-06
COTTON VALUES
: MOVE DOWNWARD
Several Factors Help Bears and Contracts Lose Over
$3.50 a Bale-Weather Better and Less Com
plant, While Weak Exchange Checks Export
Spot Demand.

ago, while there was increasing evil
dence of its effects, not only on the
prospective outlet for cotton but for
other things, including food. Accord.
ing to well informed people, one OF
the potent influences helping to bring
down the cost Of many necessities is
the crippled ability Of the foreigner
to buy what he would so much X "a
have. This was one Of the Keynotes
of ~utterances from Mr.. Hoover h said
that Europe would be compelled to dc
without much that was essential pend
ing the granting Of credits or improve
ment in her financial conditions, From
other prominent sources came predtc-
tons that the tide or prices would
turn n that relief would come.
While it was freely admitted that
the prices to which cotton scared were
by no means proportionate with the
advance in many other lines, II could
scarcely be hoped that this commodity
could escape some Of the effect OF the
reaction. This was especially true al
a time when the outlook for the croT
was improving and %spinners were in 10
sition to bide their time.
Spinners Buy Sparingly,
There seems no disposition on the
part of the %spinners to get excited
over their needs Of raw material. Those
in this country are pretty well sup
pllChs WAlIlS lliOE6 III NtCaA Nl
not disposed to take hold. although ad'
vices from several directions indicate
that the feeling in that country is op-
timlstic. Their mills are running more
freely than for a long time and buy
ers who have just returned from ovel
made for continued expansion. 1t II
pointed out that the British spinner
is placed in a much better position
because of the exchange depreciation
than his competitors on the continent
the pound sterling at present Showing
a loss from normal of only about 10 pei
cent, while much Of the continental
money is far worse han that. Thu
smart Britisher thus sees a chance t
enlarge his business considerably be
cause of this advantage, for this ap'
plies on finished goods as well as raw
material. Moreover, this same shrewt
business man is not interested In see
ing the exchange market improve now
for well he knows what effect 1t will
have on values of the raw. material ir
affairs in better shape at home. This
is perhaps one of the reasons why
the British government some time age
withdrew official support from tn
sterling market.
During the past week spinners of the
world took 214.000 bales of American
cotton, comparing with 177,0 0 SAM
week last year, the season total t.
! date being S24, 900 bales, compared
with $50, 900 last year. There was but
little movement In this country and the
into sight lost 80, 900 bales by compari
son, thus making the visible supply
relative decrease about 1877, 900 bales
1t is expected that comparisons will b.
bullish for some time, as the movement
OF the new crop is very late and those
who are holding the unsold portion o.
the old have yet to give indication o.
willingness to accept lower prices for it
The attitude Of the producer as t
ruling prices is going to be one of the
things needed to be watched. If III
shows willingness to sell freely as tht
| new cotton comes to hand, ii will be ia
for the bears fire, but a contrar.
policy would very likely bring about {
speedy check to the downward trent
Of values. The ability Of the South t
put up a stiff fight is not Questioned
but it remains to be seen whether |
will be regarded as wise business judg
ment. On many things the course o
values during the next few weeks VII
depend, but one of the chief OF them il
the attitude Of the man behind tn,
bale. The political and economic con
ditions will be important, but they vii
share honors with the other, for tn
cost of growing the present crop is be
You'd all doubt greater h any In his
tory and this will be a considerable
factor in determining the course of tn
! producer.