The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-12
COTTON MARKETS
Money Situation Both Sides
Water Causes Liquidation
In Large Volume.

'StAthua4 NOV. IL.
Some people were by no means sur
prised at what happened IN the specu-
iattve department Of the cotton market
today, for they have been reading the
signs for several days and warning
Snelr friends Of some impending danger.
mat contracts broke today in New
6ork, seine options going the limit Of
wv points for one day was reflective
more than anything else Of the tight
enlng OF money in the large centers
ana OF contemplated efforts to check
me ude Of speculation before condi-
lions get to the danger point.
n Liverpool there was widespread
Incubation on the expectation that the
Bank of England was TO advance lis
dlseount rate from 6 to Z per cent
winch IS the way over there they nut
a check TO borrowing. On this side
can money rates were higher than they
nave been, while the atmosphere was
Iull OF talk Of action the federal re-
serve bank is taking and has under
consideration Rates were higher and
apparently. the officials were taking ef-
Iectlve methods Of forcing, some liuuida-
tlon. This was true in the stock market
more h in cotton, but it quickly ex-
tended to cotton, especially in New
York, and precautions against ii going
further and reaching the cotton belt
itself were perfectly natural. This was
the big factor In the break, which he
came rapid In the afternoon, although
the near positions were not affected as
much as the others because they more
where few people expect any weakening
or consequence, for the holders are iii
too independent a position.
The weather map showed freezing
temperatures in the upper part Of the
western belt, with prospects OF them
extending flpthAr ntI,. ,E-lt .,sAl -.
haps frost to the gulf coast tonight. II
seemed pretty well assured that the
end of the late cotton was near at
hand, but as it also seemed to mean
the end of the wet spell traders failed
to see anything very bullish in it, In
iact the weather news was secondary
for the time being.
In Liverpool there was but one. side,
which was that Of liquidating holdings
ana selling of hedges on a market where
buyers were scarcer than for some
time. Finals Were easy at a loss Of
VI to 81 points, the nears being off
most. Spots were marked off 81 points,
middling to 24,S0d;, with sales 10, 00O
bales. Cables all told pretty much the
sane story as the cause ofthe break. h
Nothing was received for the day,
First prices on this side were down
because of poor cables and the alb
sence of aggressive support. The
weather map received scant attention.
March in New York opened at IS. go,
which proved near top for the day,
but December was off less and kept
so most all day. March then dropped
from its top at 35, Csc and slowly worked
off, but 1t was in the afternoon be.
fore the break became 80 rapid. A
short while before the close the limit
at 34.0Sc was reached, subsequent
months in that market also reaching
their limit. December and January,
however, did some better, but most Of
teh trading was in the later months.
New Orleans apparently did not have
quite so much speculative interest to be
liquidated. =
Because of conditions in the contract
market activity In spots was limited,
although some fairly good business was
reported from some Of the centers.
Futures closed 200 to 1876 points off.
tone weak, New Orleans closed 200 to
1877 points down, tone weak. Spots
were so points off, middling at 4Oc, with
sales 4,754 bales.
Liverpool is due to come 60 to IS
points off.
In the local market sales reported
were 500 balessand quotations were I'M
changed middling at 43c.