The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-27
BY GEORGE WILLIAMSON.

The worm turned in the cotton mar
ket during the past week and It re-
suited In trouble for the bear crowd.
The hesitant attitude displayed during
the previous week, partially because OF
uncertainty as to what the threatened
strike Of steel workers would bring,
in a large measure disappeared and
there came fresh confidence and wide
spread covering by shorts. The latter
was based largely on reduced yield ex-
pectations and an effort to discount
bullish condition and ginning figures,
which are scheduled to come Wednes-
day morning. Less concern over the
effects of the strike contributed to the
changed feeling among traders, while
higher rates for foreign exchange, with
It's consequent influence on export pros
poets, stimulated confidence in higher
levels. Activity shown by current month
spot shorts in taking offerings of the
actual at rising prices also helped to
boost bullish sentiment.
The highest prices were recorded Fri
day afternoon, when quotations reached
levels nearly 500 points, or SIS bale,
above the extreme lows recorded only
few weeks ago. The close was not
far from the top, but there was be-
sition to accept profits and look for
subsistence Of buying power. Net gains
for the week in New York were 259
to 2S7 points, while New Orleans fin
ished at gains of PA to PSI. In the
spot department gains were more ir-
regular being greatest at Texas points,
the three leading markets in the big
state gaining $50 to S75 points, middling
ranging from 1920 to S5 cents. More
spot business perhaps has been done
out there than anywhere else and ad-
vices said that shorts were taking ev-
erything offered almost regardless OF
price. Gains in other directions were
from $50 points up, with the seller die
tating prices and the basis reported as
keeping pace. The lateness Of the cror
and scarcity Of offerings restricted the
amount of sales
Texas Hurt by Rains.
General rains over most OF Texas
and the Southwest, accompanied by low
temperatures and little fear of frost
constituted one of the factors in the
start upward. There had been a period
OF hesitancy and it was not known how
much success would attend the efforts
OF the labor leaders to tie up indus
try. The combination Of unfavorablC
weather in the belt and limited sue
cess for the strikers sent prices sour
rying upward on Monday. for bull new,
was plentiful and sellers were timid
Cables from Liverpool helped, for they
were much better than expected Fur.
Their gains were made next day, helped
by steadier exchange quotations an(
continuation of conditions which en-.
couraged bullish feeling the day be
fore. A comparative lull of two day.
followed, but without any appreciabl'
disposition to take the bear side, ant
then the second big bulge of the weel
on Friday. It was predicated largel!
on sustained demand for the actual OF
the part Of shorts and smaller croI
Ideas as result Of private condition
and ginning reports, together with fur
Their advance in foreign exchange rates
The fact that weather conditions wer
improved had small weight with ira
ders. for 1t was too late for this t,
have large effect.
Expectations are for the bureau re
port on condition to be under the low
record, which Is 54.S for Sept. 25, II
1917, and the two private ones cominl
70 hand were for less than 81. One re
suit of this has been reduction In GRO
expectations to 10,50c, eco bales or les
on the part of the average observer
This stimulated higher ideas OF valu
on the part of the producer and In
duced moro independence as to &C
cepting offers made by those who wer
under the necessity of buying at once
The stimulus given TO optimism wa
due to several factors, and the exist
ence of considerable short interes
made the upturn easy, for 1t is an az