The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-24
BY GEORGE WILLIAMSON.

Although the July option in New
York made new high record for all
time in the process of the squeeze to
which shorts therein were subjected,
selling several times at S.75c. the mar
ket as a whole was reactonary and
sentiment more bearish than for some
days. The elimination OF the short
interest during the period when active
positions worked up approximately SIS
a bale from the bottom made the mar
ket more vulnerable. so when the news
came more favorable to the bear side
little effort. The bulk of the decline
came within two days and at the low
Aest points on Friday prices were prac-
tically as low as they were before the
recent recovery started. Sentiment APP
peared to be more bearish than 1t was
then, for growing appreciation of the
financial and political situation is be-
ing added to the effect of enlarged eX-
pectations of yield. Failure of demand
for the. unsold portion of the old crop
! TO develop naturally increases the bur
den to be faced when the new one be-
gins to move, thereby directing atten-
tion more and more to the problems
of financing II. -
- At the close Of the week the list of
options in New York stood 149 to 225
previous, while in New Orleans it was
1913 to 40 points to the bad. July OK
pired in New York at 43.75c, while the
same position in New Orleans closed
the same day at 35.74c. The october
position in New York sold as high as
35.31c on Tuesday and dropped to $3.50
on Friday, thus making the weeks
range 271 points, that reflecting changes
In other months fairly well. with the
exception of August, which lost 300
points in two days.
In the spot department business con-
tinued poor and quotations as a rule
were without change. Houston, Tex.
which, perhaps more nearly than any
other center reflects the influence of
offerings of new cotton this early, was
marked off 200 points, middling to 37c
and sales there were fairly large Dallas
was marked down 1875 points, Galveston
so, while Memphis remained unchanged
and New Orleans was marked up rs.
although lower grades in the last named
city were reduced. Advices from the
section where new cotton is beginning
to be available said that it vas being
sold as rapidly as ginned, and it was
also said that the crop in that section
also promised better than in several
years.
Bearish Views Increase.
Trading was fairly active and despite
the strength in July, which was accen-
tuated by the failure of some shorts 10
get cotton to New York in time for de-
, livery, due to transportation conditions,
the general list reflected bearish views
becoming predominant. Weather was
more favorable than anticipated and
the weevil depredations apparently had
been discounted too rapidly, for the
weekly summary was better than ex-
pected. 1t told of the pests activity
and numerous presence. but said ac-
tual damage as yet had not been ex-
tensive. With the technical position
thus weakened, the discounting of I'M
favorable features completed for the
time being, attention then turned to
certain features. which had been in
eclipse European news was by no
means favorable, the inability of Po-
land to check the onrushing Russian
Bolsheviki tending to create fear of far
reaching troubles on the continent, and
a possibility of the allies being COM
PEELED in elf-defense to send troops.
This helped discourage confidence in
the future and buying of raw material