The Birmingham age-herald., 1919-06-13
Shannon & Co.'s Letter

! MeSSfS. IOSI N ldSs WlTt us toddy as follows:
 The basis for the strength of the cotton market today has been the very bullish advices from the dry goods trade combined with poor reports from | the crop in the various parts of the eastern belt. General business has. not been on a large scale. but accord | ing to gossip several of the more prom | inent local traders who were connected with the advance earlier in the year, but sold out have been buying again and there has also been demand through brokers thought to be acting 1 for the French mmission. Exports were 10000 bales. Bearish features such as possible labor trou- bles curtailing consumption and the i fact the near months like July are los | ing their premium do not attract at tention any more than talk that sum mer weather may prove favorable. They may all in turn play their part, but for the present the insistent de- mand for goods is the dominating i'm | fluence in the market supported by the 1 fact that to date the progress of the | crop has been distinctly dsappoint- | ing. . M pa W 1 Il Wide swings are probable, but in the present temper of the market the short side is not attractive.-Shannon & Co.
 New York, June 12-The terrific pace of the past month slackened off somewhat yesterday and again today in the stock market. The feeling is gradually getting about that after all the banks can control the money situa tion and that they have decided that the present speculation has gone far enough. We do not mean to say that the market cannot have strong days and sharp rallies, but we cannot look for any further persistent, strong, con fident advance such as we have been enjoying in the past two months, at least not for sometime. From now on, we expect at times spasms of real re- action.
 Money today loaned from 1 80 to 2;45 at to per oent and in large amounts, but apparently there was enough to go around, for the rate eased off again in the last 15 minutes. The market re- acted with the higher money rates and is closing at a setback. As usual un der these conditions the speculative community professed to know just why money is high and how long it is go- ing to be high and all about it, but our experience has taught us that after such a big advance in the market when
 
 day after day, it is time to look out for continuation, which we think we have about reached, at least of the way of the bull movement If people want to trade, we would advise them to sell stocks on strong spots for the next 60 days. After that the situation may change and we may go back tc the same old bull market conditions once more We do not believe, how xx,;I1 further sustained enthusiastic advance Sales, 1,2S1,S00.-Post & Flagg.
 
 Over W. I. Phelts & Co.'S Wire
 New Orleans, June 12.-Early declines in the cotton market today were re- placed by recoveries and stiff advances later the trade showing alarm over the great number of reports from the in- terior, telling of abandoned acreage as the result of the combination of unfavor- able weather and the scarcity of labor. In the early session prices fell off 37 to A points; the reaction from the decline carried the market 52 to 66 points higher than the close of yesterday. Spots were marked up B points which surprised some people who did not look for much change. Spot holders seemed to be stiffened by the accounts now coming from the belt which certainly do not point to any early movement of new cotton of consequence
 The trade took an unfavorable view of the political situation in Europe and the market opened lower on this and the continued wire strike. English consols were s off in the early part of the day, which was accepted as bad sign. The good Liverpool and the wet weather in the telt were ignored for a while, but the forecast of continued showery wealth CT served to call attention to the com plairts from the belt and a good demand sprang up
 Under present circumstances we feel that any bullish news or developments will have quick effect on values as re- cent selling has put the market in shape to respond to new demand.
 The close was 43 to 50 up net Shepard and Ciuck.