The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-18
BY GEORGE

Further progress was made during
the week toward deflation of cotton val
ues, with consequent increase of bear
ish confidence. They found resistance
to their efforts comparatively feeble
and success inspired some predictions
OF further declines. Despite the lower
ing of quotations for spots, and the
absence at any time of demand of con-
sequence, holders were as q ule re.
fusing to display distress signals and
to ali appearances were stlll full OF con-
fidence. They have felt some concern
over their situation, but it did not
reach the degree of inducing Willingness
to offer at prices in line with the drop
i'll contracts.
One Of the striking bits Of news COM
ing to hand was the reduction an
nounced in staple lines Of finished
goods, the first open move toward adj
justing quotations to postwar condl-
tons. The cuts were the largest made
at one time since the Civil war, ap-
proximating 20 to 30 per cent, and were
regarded drastic. Later in the week the
reductions extended to other items and
indicated that the tide had sharply
turned. Accompanying the news Of low
er prices came advices of how disap-
pointing has been demand for civilian
requirements, which created a feeling Of
pessimism in the trade, following the
widespread cancellation of government
"HA Wis ~ "ob ~ bOAANA NAANN
the extreme reductions confirmed claims
of how unsatisfactory trade was, thus
inducing the speculative element to
reach very bearish conclusions.
h census report on consumption OF
cotton in December, the amount having
been 472, 900 against 516,O 900 for the same
month in 1917, also afforded encourage
ment to the bears, especially as the
first five months of the season showed
a falling off of 400, 900 bales in this
country alone. The report OF itself was
an unimportant influence for the mo-
ment, but in connection with the char
acter of adviceS as to what the mills
hope for the next month or two 1t slim
ulated bearish feeling. There seemed
to be more confidence in the ability to
to a lower level and more aggressive
ness was displayed in certain specula-
tive quarters toward bringing this about
If possible. One of the significant de-
velopments was that some large inter-
ests closely allied with the mills either
altered their positions to the extent
that they lessened their support or
came out openly and helped in the SELL
ing, This naturally encouraged the
bears and induced a lot OF speculative
short selling.
New Lows Recorded.
Lowest levels for some positions were
made % Wednesday, although others
recorded them on Friday. In New York
' March touched 24,50c and May %. 92c
The former option has not gone as low
as it did on December 2, but May and
later ones nave increased their discounts
and made new season lows, this abnor.
NAL condition of discounts on deferred
positions being one of the things so con
fusing to the trade. Some recovery
from the lowest levels came, but Il
seemed due as much to negative as tC
positives factors, support coming largely
from satisfied shorts, although som(
trade buying against needs of raw ma
terial was noted.
For the week New York contracts los
$50 to ia points, while the same II
New Orleans lost II to 1852 points. More
or less ~irTegu'arity prevailed as to diff
ferences between the two markets ant
the options themselves in the SANE
trading center. In the Liverpool mar
ket changes for the period were abou
the same, the foreign traders still con
filming their operations to keeping II
line with fluctuations OF this side, leav
ing adjustment of differences as re
suit of lower freights to a later date.
The spot markets were more or les
upset as a result of the unsettlemen