The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-12-16
COTTON MARKETS
Higher Exchange Rates and
Better Outlook fer Foreign
Loans Help to Bulls.

tuesday Afternoon Dec. 10.
Shorts in cotton had a bad day Of
II today, being subjected to severe pun
ishment. The chief occasion for the
sudden outburst of strength seemed to
be in the financial situation on both
sides OF the water Sterling and other
foreign exchange rates were higher this
morning, while some good people on this
side had 1t that informed circles be-
lieved the worst had passed and easier
rates would soon be witnessed. Later
In the day the announcement from
Washington that the Edge bill, which
provides that banks operating under
national charters would be allowed to
make foreign loans, had passed the
senate and was ready for the presidents
signature proved still another impetus
to the buying wave.
The center of the bullish activity was
in the near positions, the steadiness in
spots and small prospect for protecting
short sales with actual deliveries serv-
ing as notices Of warning and inducing
considerable covering activity. The big
discounts at which the contract market
is ruling naturally discouraged offer
ings, although il was notable that the
distant months failed to keep pace with
the near. In New Orleans a few shorts
in December tried to cover and were
forced to pay dearly for it, that option
selling at 39.70C, then to 40.50C and later
to 40. soc. The action Of January and
March in New York did not seem to
indicate much confidence in expected
deliveries there, though discounts there
continue considerable compared with
spots.
Liverpool was disappointing, but this
was natural enough with sterling firm
Ell and better prospects for larger move
ment from this side in that direction,
Finals were steady and from 6 points
I,Ff - ntv,N- l. al
down q points, middling to 25 9Sd with
sales Of 1000 bales, including $500
| American. Manchester's report was
! GGain excellent, cloths being in good
| demand and yarns very firm,
The chief early influence was the i'm
| provemenr in sterling and increased talk
\ OF action being taken to stabilize It,
which will increase prospects Of bust
ness for export, First price for March
in New York was 33.SOc but 1t sagged
to 3S. soc before starting upward There
| after the advance was not checked for
| long and in the late afternoon 1t had
reached 3460c and seemed to be well
supported, The later positions were
rot up quite so much, due TO the fact
that some short hedges were being
transferred to them by those covering
shorts nearer by Some OF the profess
siOral shorts were among the buyers,
While Liverpool continued to buy over
| here as well.
In the spot department activity was
better and demand was reported broad
er, although by no means general yet
The news as to finances encouraged
| those who have been waiting for de-
| mand to revive and more bullish talk
was heard than for some time. Export
for the day were small, but it is be-
leved they will be large from this time
on, as fuel troubles are at an end
Should there be real basis for talk Of
more foreign credits and for more stable
exchange the chances would seem tf
favor freer export movement
Futures closed l16 to 10 points up
tone steady.
New Orleans closed 100 to As points
up, tone steady. Spots were up q
POINTS, middling at 4Oc, and sales wert
1853 bales.
Liverpool is due to come AZ to 81
points up.
In the local market sales reported
were $3.50 bales and quotations were
unchanged. middling at S9.5Oc.