The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-09-25

extent it will go and how long 1t will
last none can say, but it can not be
eainsaid that the past few days have
kturn to something like normality than
ended
Cuts May Help Demand.
What effect this recent deflation eff
fort will have on cotton time only can
tell, but 1t is expected that active de-
lnand for raw material has been has
tened by the drastic action. The time
has been too short to ascertain the eff
feet of lower prices on cotton goods
and materials on the publics buying
attitude, but significance is attached
by some to the fact that trade inter-
ests We're absorbing the deferred con-
tracts while those nearer by were sub
Jected to so much pressure, indicating
appreciation of the cheapness of the
former. That the lower prices will In
time stimulate, buying, the potential
extent Of which is tremendous because
Of the enforced limitation thereon by
nigh prices, is some basis for optimism
as to the probable course of values
1t was current report on Friday that
the drastic cuts in cotton goods and
yarns had already resulted In consider
able business, although the extent of
such is problematical as yet. The pub
lie stands In need of vast quantities of
goods, but 1t has realized for long
time that prices were unduly high and
that the manufacturers were getting
entirely too much profit, which also
gave impetus to much speculative hold
ing OF goods in various departments Of
trade and commerce. Tightening of
credits has done much toward releasing
a large share of such holdings, but the
buying public has also learned that it
had powerful weapon in it's hand to
help force values down. assisted, of
N nTp
longed spell of business insanity and ex-
travaganco has come a distinct reversal
of feeling. and 1t remains to be seen
to what degree it will assert itself in
bringing down some of the stupendous
profits demanded by every branch of
That the producer must share in this
is one of the unfortunate features from
the standpoint of the cotton belt, al
though it is admitted that prices
to upset completely the idea of what
was reasonably high price. One of
the contentious of close students of con-
ditions is that cotton has already stood
more than its proportion of the defla-
ton, which can hardly be disputed, al
and demand and the advantage which
big business and organization has over
the unorganized producer makes the
prospect anything but a glowing one.
IHeTe Is no sigh Oh CIlanBe as TO tue
financial condition although in some
sections relief is being had and the
worst is believed to have passed. Values
in practically every direction have
shown tendency to decrease, which of
itself helps to relieve the strain on cred
it, and those who take a favorable view
of the outlook feel that through the
machinery of the federal reserve sys-
tenn some of the burden of the cotton
belt can be distributed to other sections,
although official pronouncements are all
to the effect that assistance win not be
given to speculative efforts. such as
Withholding of cotton for higher prices
when there is reasonable demand for It,
The picking season is getting under
way even in the upper districts and
the weight of bales will soon be felt,
but with a crop considerably reduced
from recent prospects and the frost
menace ahead, the probabilities are that
the worst has been witnessed, at least
for the time being. There is ample time
for much to happen to turn the bear
raid into rout, for values around 20
to rs cents a pound for middling cotton
at the gin are much below cost of pro-
duction, and no market Is safe for the
seller when such is the case, matters
not what economic conditions are.