The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-14
COTTON MARKETS
ReaCtiOnaTy Tendency Con-
tinueS, Helped by Foreign
News and Tight Money

Apparently the continued tightness In
the money market is having constd-
cradle effect on all markets, cotton in
cluded, for II received credit for caus-
ing most Of the weakness manifest to-
day. There was more or less concern
over the developments In Germany,
which resulted IN martial law being de-
clared there, but Liverpool, which Is
nearer by than this country, seemed
less influenced than were domestic
traders. The call rates again reached
high figures, Is per cent being reported
in the afternoon, while It was rumored
that The federal reserve bank for the
New Yorw district was going to raise
its rate again, which win be reflected
by rates In other districts, This all
produced more or less liquidation, de-
sfite the fact that the spot department
In the belt failed to show eLsiness Of
consequence, although there is an APP
parent lull In demand.
The census report on December con-
sumption was a bullish one, showing
bales, compared with 49i 900 IN Novem-
Der, and 473,0 600 in December Of 1918, 1t
showed that for the first five months
consumption of lint cotton has been
2,5jl,476 bales, compared with $780,
S06. while Of hnters II was l20, 1888, as
compared with S6S, 55l. S%pindles in OPP
Grafton were a.. 94,214, compared with
34,4SS, 775, a record. Spinners held in
stock at the close of December 1884,
5S1 bales, compared with 1,643, 055 at
the close Of November, and 1,75l, 724
December, 1918. Expectations were for
the consumption figures to be smaller,
but h bullish effect on the market
was short-lived.
Liverpool closed quiet at net loss of
Ia to 80 points, while spots were
marked up three points, fully middling
TO 29.96d, with sales of 5000 bales. in
Guiding $500 American. Receipts for
the day were $1,000 bales, including
24,5OO American. But little information
cam in private cables, but 1t seems
evident that the foreigners are in po-
sition to do a little watching of the
market for the time being
Opening in the domestic markets was
irregular, some positions showing slight
gains and others declines.
March in New York opened IL points
up, at 36.S6c, which proved high for
the day. There was a quick recession
to 35.75c, when fairly good support
came from certain interests, but this
failed to make much impression and
later sellers became holder, helped by
money market news and weakness in
other directions, chiefly in stocks. Pres
sure was not aggressive, but a short
while before he close, when call rates
suffened to is to 18 per cent more Of
ferings came, resulting in March dip
ping to 35.58c, a decline from the early
high of about 81 a bale. Support de-
veloped and a little recovery followed,
based on confidence In the spot situa-
ton.
Exports were fairly free and pros
poets seem to favor them continuing
so. The exchange market Is not chang
ing much, but there is an absence OF
improvement, and some predictions of
further declines are heard in certain
quarters. The talk of prospective i'm
ports of finished goods from Europe is
finding a moro ready hearing than it
did and bearish feeling is apparently
spreading a little, while the lull In spot
demand continues.
Weather in the belt has turned bet
ter, but there is much complaint of
how little has been done so far in Sec
tons that usually do a lot of prepara-
tory work in mid winter. Acreage dis
cussion Is increasing, with bulls relying
on seed quality and the labor situation
to offset the prospective disposition to
plant more heavily.
Futures closed 80 to 65 points off,
tone steady.
New Orleans closed So to 81 points
down, tone steady. Spots were re-
duced rs points, middling to 40. 25c, and
sales 1,196 bales.
Liverpool is due to come 9 to IA
points lower.
In the local market interest in the
exchange election ov~ershadowed all else,
and as a rule little effort was made to
do business, but sales reported were
5000 bales, and quotations were un-
changed, middling at 40c.