The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-26
COTTON MARKETS
Market Goes Higher Early,
But Covering Subsidies and
Moderate Reaction Seen.
Thursday Afternoon. Feb. &c.

Auuf1udA Afternoon T eD. 20.
Helped by continued strength abroad
and by support from professional cir
cles higher prices were recorded early
in the contract department Of the cot
ton market, but later some reaction was
witnessed. Apparently the worst Of
the snort covering had been seen, leaY-
ing the affair in more vulnerable con-
dition. But ii was notable that sellers
were cautious and the market received
pretty good support around last nights
closing level. Trading continued mod
crate in volume and news developments
mixed.
Early in the day some buying was
done on a belief that action would be
had on the peace treaty, but none
could say whether 1t would be favorable
or the contrary. so this proved a small
factor Wall street and Liverpool were
credited with doing most of the buy
ing, but this demand subsidized later
and left the market in shape for the
dip. The English bank rate remained
the same, which had favorable effect,
and the only change announced on this
side by the federal reserve officials was
the elevation of the rate from AZ to
5 per cent on loans secured by govern
ment bonds or notes where they run
but a short time. But the call money
. market was firm and rates were 10 to
IL per cent during the forenoon The
stock market. however, displayed
better tone and there was less demand
than usual for money.
Foreign exchange rates were without
much change. There was more or less
concern over the domestic labor situa-
ton, but no specially new features were
presented and the prospect of the rail-
road bill becoming a law right away
was encouraging, in spite of the fact
that the unions are opposing it and
will probably undertake to get higher
wages and thereby bring about con-
flicts However, the report that some
of the packers are already laying off
men because of smaller export business
is regarded as significant and may
prove the beginning of period of less
radical demands on the part of labor
Weather in the belt was clear as a
rule, but low temperatures prevailed,
close to freezing being reported nearly
TO the gulf. The conditions did not
encourage reports of much farm work
MDeing done, but indications were for
warmer by tomorrow in the western
X Liverpool was due to come 10 to u
points up, but finished the session quiet
and from IS to IL up, nears being up
imost. Spots were marked up 81
a polnts, fully middling to 31.44d, with
sales 5000 bales, including 4,4O0 Amer
lean; Receipts were $4,000 bales, in
Guiding 25 800 American
1
and higher, reflecting strength in the
March position and the character OF
advices from the belt overnight as tc
spots. quick dip o few points
May going to 349Sc after opening al
3b,10c, was followed by a bulge to $500
, tie high for the session. March in New
; York sold as high as 1880, but alsC
reacted some. May sold back as low
as 34.S1e. but met fairly good support
and during the afternoon session KEEP
within narrow range not far from thu
previous close.
Spot news for the day was not yer,
y important, although exports were abou
10000 bales. Demand is not large as ;
rule, and some are claiming that par
OF the business being put through is a
less than quotations. But the encour
aging feature is that the low grade
are beginning to move a little better.
Futures closed 10 points up to Q
down; ton steady.
New Orleans closed Al points up {,
"a off; tone steady. Spots were up 2
points. middling at 4O.25c and sale
We're 5,044 bales.
Liverpool is due to come 70 to 1
points lower
In the local market sales reported
were 1000 bales.