The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-04
COTTON MARKETS
HeSter's CaTy-0ver Figures
Send Prices to Limit for
One Day-Big Surprise.
Nondav Afternoon. Az. !

Monday Afternoon, Aug. (.
Verify, the life OF the cotton grader
is a hard one, and he never can tell
what another day win bring forth. Just
a Few days 8 he saw the government
srring a surprise that sent prices sour
Tying upward to the one-day limit, on
the report indicating a much shorter
crop than anybody had figured on. To-
oay he saw some statistics from an au-
thortty equally recognized for his ac-
curacy send prices down the limit, fol-
lowing on the heels OF a declining ten
dency on the day before. The surprise
was simply on the other side, for the
latter report showed that the amount
Of cotton used during the past IL
months by the world was less than
thought n the amount to be carried
over and added 10 whatever the new
crop proves to be viii obviate n scar
city for at least one year whether or
rot the holders are willing sellers. The
knowledge that the stuff Is in exist
ence viii be a protection against bulls
pushing prices TO any levels they may
see fit.
The market during the first part of
today was a bearish one. largely be-
cause of the spreading agitation of
living costs and Of the fear Of railroad
tieup. The reactionary disposition pre-
vailed in all the speculative markets
and cotton shared therein, for many
people believe that the unimpeded rise
in values there has been in 4 measure
due to the sam things causing Il in
othr directions.
The market opened moderately lower
and seemed to be without special sup
port of any sort. The weather over
the weekend was not bad, although
the map this morning showed a tor
rental rain In southern Alabama and a
few fairly heavy mes elsewhere east
Of the river, But the political and eco
nomic news were the big influences and
they favored the reaction, which eN-
tended about IS points on October. the
option In New York selling at S3.15 AFT
er opening at 34c. Some guesseS that
the big rain at Mobile might pressage
a coming gulf storm induced some COW
ering, which CARED the list back up a
little piece, although ~irregularity char.
acterized trading and backing and fill
ing was INDUCED In. Later signs OF a
possible storm were lacking and the
forecast of showers for the eastern belt
did not encourage buying, so that the
decline comm lced again.
The big break came after Secretary
Hester. In New Orleans, issued his fig
ures on consumption of cotton for the
past year and on the amoutn carried
over to the new season. He said the
world used of American cotton up to
July 81 only 10,620,6 Go bales, compared
with 1929, 900 for the same period the
l NNdI DClOlCt NHiit NiC "a y~oNVA -
6,S24, 900 bales, compared with 4,422, 900.
The trade had figured on a smaller
amount to be carried over n hence
the selling which carried prices down
to their limit for the day, October
touching 32.30c and December 32.5oc,
Trading subsidized for a time, but a lit
tie later a few traders bought December
just a few points over the bottom.
There was but one conclusion possible
after Hester's figures came, which was
| that some miscalculation had been don
and there was small prospect Of scarcity
for a long time, unless the world shows
better prospects Of liberal buying than
Is now evident or apparently possible,
The ideas of many people underwent q
rude shock. and none can say yet to
what extent this may 60, for with a
crop of only 10, 800, 900 and this carry
over there would be available something
like 17,5Oa,0 900 bales American for the
coming year.
After this news came there was little
attention to anything else II 1t was
thought that Liverpool attitude, as Will
probably be expressed tomorrow when
she resumes business, will help deter
mine the trend OF opinion over here.
Futures closed 1856 to 200 points lower,
tone weak.
New Orleans closed 1872 to 1893 point
off, tone barely steady. Spots were of
IT'S points, mfddling at 32.50c and sales
| 1,1SS bales.
Liverpool should come 1O7 to Iii
points lower.
In the local market sales reported
were 200 bales and quotations were I'M
! changed. middltng at 34,50c,