The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-31
BEARISH REPORTS
DEPRESS COTTON
Condition Figures Show Improvement and Larger
Yield Expectations = Weather Satisfactory.
Financial Situation No Better and Reaction Idea
Spreads.

ain was not sending such encouraging
advices as to the trade outlook. On
| this side mills were still seeing values
| recede because buying was restricted
| and cancellations were coming. There
| were further indications that a general
| and far-reaching reaction was really
under way. denoted by the declines in
grains and stocks and by effects of re-
stricted credits and tight money. Re-
ports from the best sources told OF the
pace slowing down and Of an altered
attitude on the part of the public as
| to its purchases Much of 1t was psy-
Geological in its effects, yet II figured
| in determining the course of values:
The lowest levels Of the review period
were reached at it's end and at the
moment there seemed little basis OF
hoping for relief without some change
! in the character of reports from the
fields and from manufacturing dis
tricts.
Probable Factors.
Developments during the past several
days would seem to indicate that the
market is not in position to move much
either way, but with chances against
it going off further. There has been
steady flow of bearish news for the
past week, yet prices did not get much
lower. 1t can he rdly be hoped by those
who are still bearish that crop accounts
can get any better, although there may
be disappointment as to deterioration.
The existence of a big short interest
makes the market vulnerable to at
tack, while probabilities are that con-
ditions with the manufacturers nave
seen their worst and that any change
will be toward improvement. More
over, prices of options have reached
levels that are admittedly at or below
cost Of production, which increases ike
lihood of strong resistance from the
belt, even with the handicaps to be
faced.
That financial conditions are diff
cult is freely admitted on all sides, but
all the utterances from authorities are
not pessimistic. Much of the reaction
and deflation of the past several months
have been conducive to healthlness
There is admitted need of large crop,
for the world has no reserves and It's
holdings Of goods are at minimum.
The abandonment, in measure at
least, of it's tendency to be wildly ex-
travagant and reckless will mean larger
ability on the part of the public to
provide for it's needs of essentials,
among which cotton and its products
are to be included. The annual sta
tstics, which will be published IN
day or so. will shed light on wnas
has been done during the past year
and give definite line on what Is car
Or On the the other side Of the picture is
that money conditions this fall are
such that Withholding cotton from the
market in an effort to sustain values
or get them higher will be .practicalV
out Of the question, unless 1t be cone
by the producer himself. Handling OF
the early part of the crop movement
will be nearer or a cash basis than
ever before, which some fear VIII De
help to the bear side because OF u
being so different from custom. IL Is
already noted that the early receipts
in Texas are being sold freely ana IN
addition the section whence they came
seems to have very favorable yieii;d!
prospect. Transportation troubles VIII
figure in the difficulties to be faced,
and will more than likely cause sofne
interruption to a free flow OF funds
from the spinning districts for theT
The question Of taking care OF the
cotton out OF the weather. VIII oe
greater than ever before. due TO the
fact that warehouses already nav
more than their usual stocks on mana
and is also likely to figure, and II De,
hooyes the planters to make proVisIol,
for meeting the situation. WIN large
grain. crops to be moved and the ran
roads crippled there is prooaoilty Oh
congestion of raw material, as well as
DELAYED movement Of the nnisnea'
thereby delaying revival of Distribution