The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-31
SPOT STRENGTH
DETERS SELLING
Demand Nothing Extra But Holders Make No Con
cessions and Seem Confident As to Low Grades
Money Conditions Worse, But Disregarded
Weather Better

| all sections told Of higher rates, but
little surcease in demand. Il seemed
accepted as due course Of events in
these times of rising costs for money.
long the cheapest in the world to be-
come stylish and Join the skywsrd
march. 1t seemed anomalous that call
| money from 10 to 20 per cent should
appear TO be disregarded by the mar
kets, but some well-posted people ex-
pressed the view that it's effect was
felt in preventing a considerabmle rise
in prices. and that later chances favor
II turning the tide in the other direc-
ton.
Money Rates Important.
There is plenty Of time for the tighter
money to assert itself. and II is logical
to expect it. Some effects are already
manifest. although the position OF the
holder of cotton is SO peculiar and he
is SO Independent that 1t will not be
as soon as if the. usual carrying OF the
unsold part OF the crop was being done
with funds belonging to others. There
Is nothing to force selling Of the rem
nant, but 1t remains TO lie seen how
long the patience supply will last. It
Will be more a question of business
acumen and judgment than Of necessity.
Lots of talk is still heard Of price de-
flation being long way off yet. and
1t probably is in most lines. but in
some directions already signs are not
lacking Of a more conservative policy
being taken. There Is still a scramble
for finished cotton goods, but that is
largely due to the fact that output is
being limited by shorter working hours.
There Is plenty Of raw material, but
labor has yet to change its attitude
and try and reduce the cost of living
by helping to enlarge production
From many directions are coming
q n ,,V,ln fArr arI1 a~a
taken and speculation reduced the in
evitable result will be panic and dis
6ster. even in this country with the
federal reserve banking system and
a greater plethora of wealth than ever
dreamed Of. The strings are being
drawn tighter, or so 1t appears, and Il
is reasonable to expect that cotton will
be influenced thereby, although per
chance not to the extent that prices
will work lower yet.
The shadow of the new crop is be-
ginning to cast ITSELF but so far clouds
and rains have been so plentiful that
its outlines are dim. Only the past few
days have brought some relief from the
continued rains and work will perhaps
be starting again in some districts next
week. Some of the support the mar
ket has been getting was based on the
advices from the belt telling of little
progress in winter work and the i'm
PROBABILITY OF Saving InuCn Ol lHe uH-
picked part Of the crop.
The assumption is general that acre
age will be increased, some predicting
around $1,000. 900, but the labor supply
and the question of good planting seed
may figure prominently in determining
it. There has been practically no
weather severe enough to lessen the
crop of boil weevi. so it is reasonable
to count on liberal depredations from
the pest next season. The incentive to
planting literally to food and feed
crops, in order to reduce the necessity
of buying such from other parts of the
country at very high prices, remains
strong and many will respond to 1t,
having by experience learned that one
of the main reasons for the South's
independence and increased wealth finds
its basis in Investigation.
The bears. however, find comfort in
the fact that reports indicate every
rrepara ton being made for large
crop. They cite the fact that last sea-
son with the weevil all over the east
ern belt practically large crops were
made, comparatively speaking. They
hear of liberal purchases Of fertilizers
and believe that IL the crop next fall
is not large one it will not be due
to the fact that area was not planted
for such. as ruling prices are admit
teddy profitable, even with the cost Of
production high as 1t is and promises
to be. The ensuing several weeks will
shed considerable light on the situa-
ton. both from the standpoint of dis
posing Of the unsold part OF the old
and pitching the new crop