The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-25
MORE SUCCESS
FOR THE BEARS

to contend with a report on ginning
which was larger than expected. II
showed that the close OF the past pc
riod ginning totaled 1862, coo bales,
pointing TO full confirmation Of the gov
ernmeut estimate being met or exceed
ed. This proved a small influence, eN-
Cept that it came when the bear tlue
was strong and helped the downward
pace. II merely accumulated the al
ready bearishness of statistics.
on Monday there seemed to be moth
ing but bearish news, much OF II
from abroad. Not only had there been
lack of buying from that direction, but
1t was announced that the largest group
of American mills were gong on "A
schedule of 5 Ia hours per day be
cause of small business. This fit in
with adyices from other parts OF TINS
country that the recent cuts in GOODS
had failed to bring buyers as expected.
The fact that goods prices, still were
at enormous levels compared with cost
Of raw material, even at what the
holders were asking, apparently did not
| figure. The spinners were evidently not
disposed to give VI his fat Protlts IN
any measure to try and encourage bust
ness. 1t was on this day that October
began to lessen its discount compared
with the near months, due TO absorb
ton by trade interests and others, TINS
continuing during the rest of the week;
Next udH d nlllt ItCONClN ANlpn -
new low levels, but strength was but
passing and seemed merely part OF
the bears plan of campaign. There
was some alteration of sentiment as
prices worked lower, chiefly as the
bearish views were realized and 1t was
questioned whether the holder would
be forced to give up the fight and take
what he could get for the product for
which the world is 30 hungry and
which, except in limited quarters, Is
so sparingly held in both raw and fin
ished state.
What viii be the outcome Of the
effort to force the holder to turn loose
Is a mach discussed question, and no
attempt is TO be made here TO soiVe
it. Too much depends on what the fu-
ture will bring. That the decline has
gone farther than justified by legltl-
mate influences is scarcely to be ques-
toned and the hears have used all
means, fair and foul, to bring. values
down, even including reports that the
federal reserve banking system had an
nounced that cotton loan limits sAust
be reduced, which met prompt denial,
Quotations for spots haYe been re
duced, more sharply in some directions
than others, but all are largely nomi-
nal. There has also been some IN
crease in the discounts on lower grades,
the ones which are sc. plentitul ana
to which bearish eyes have evidently
been directed Midaling was quoted
Friday at 24,65o to ale at the leading
c%enters, but none could say which was
nearer right considering the attitude Of
the holder. There was practically no
business and the s%pinners did not seem
to want to buy at any price. Time only
will determine where the holder will
begin to turn loose freely.
1t can not be said that the latter has
lost the fight although he is visibly
perturbed and worried, Distress sig
nails have not been put out in any
large number, but none can say now
much concession will be made when
The financial independence is still to
he considered and bears may have
trouble ahead, for they have forced
contracts down much faster than con-
sentative people think safe and to enor-
nous discounts compared with spot
quotations, even at the lowest. There
may be surprises in store for the bears
and once the upward tide starts the
enormous short speculative interest
would be fuel for the fire which would
burn rapidly.
The statistical position is still bear
ish, and will continue so for a long
time, but this is nothing new and has
been considered many times. Exports
are still slow, although for the past
week clearances we're about 200, 900
bales, the largest for any week of the
season, and reducing decrease com :
pared with last season to about 60, 00C
bales. The increase soon Is expected
to be in geometrical progress, al
though bears counter this with the pre-.
diction that financial difficulties will
cause restricted buying Indefinitely.
The question Of reducing acreage Is
looming larger all the time and has
been stimulated by recent happenings
There is a strong movement already
looking to such, and while it is prob
ably desirable, from the standpoint oil
the ones holding cotton especially, there
is no telling what will be done. Views
as to it's likelihood usually diverge along
the lines of whether holders Of such
are bullish or bearish on the market,
as well as to what Is thought to be
actual cost of production.