The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-07
CRASH
BRINGS DECLINE
Monetary Conditions Afford Bears Effective Help
Bullish Confidence Shaken-Manchester Says I'm
ports VIII Be !Checked-Spot Markets Are In
active

tell whether this viii prevent consiG-
cradle increase in acreage.
Current ideas still seem to lean 70
touched $3.50 by Wednesday, which
proved bottom. But little else figured
except high domestic rates and weak
ness in exchange. Shorts covered at
tie decline, as they did from time to
time, but recovery was only partial anu
finals show net losses from IL 10 ltO
points in New York, with New Orleans
down from 23O to 1852. The new crop
months were relatively steadiier than
the old, rejecting the big discounts
thereon and more or less fear that the
new crop is not going to get Off to any
| too good start.
Spot Business Light.
In the spot department business, a.
ready slackened considerably, decreased
| further and quotations were generally
reduced. At the leading centers in the
| 113 points, quotable at IS to 1880 cents,
| The weekly statistics proved about
dog fall.
Exports for the week were $4,000
bales, making the season total to date
3,944,0 bales, which compares with
| last years 2,70S,000, and 2,6lSOOO two
years ago. The amount on shipboard
awaiting clearance is considerably
larger than last year. which means that
clearances will continue relatively large,
but it remains to be seen how much OF
the port stock will be sent forward until
there is Improvement in exchange
Financing of some of this may have
been arranged, but 1t seems reasonable
| to anticipate a reduction in exports I'M
| til the atmosphere clarifies. The large
amount already exported is Of course
not a bullish argument, for 1t simply
means the foreigner is better fortified
for waiting, If that is to be the policy.
| Spinners took 267, 900 bales American
| during the week, comparing with 22Or-
900 same week last year, the season to-
tai to date being 7,549,000 bales, COM
pared with 6,526, 900 and 7,417,G0O Visi-
BILE supply American gained 52,752 bales,
according to Hester, compared with I'd
gain this week last year of 55,0S1, a
slight relative loss, but it amounts to
4,579597 against 1851 72, an excess
of practically 100000 bales.
With the exporters out of the market,
domestic spinners have also been do
ing nothing of consequence. They also
may face deflation, and already a
slowing down of demand is noted, with
more advices telling of selling from sec
ond hands, an indication that high
money is beginning to make itself felt.
However, nobody really expects to see
any relief Of consequence from the high
prices soon, and it is doubtful whether
buying will slow down for quite spell.
The probability is that the peak has
Deen seen anu LneTe Will COIile n LlIllo
when the tendency will be the other
way, slow as It may prove.
Weather conditions during the week
were somewhat improved over the re-
cent average but by no means ideal,
There was little rain west of the river
and part of the central belt had compar-
alive dryness. The eastern belt had a
lot of rain. Temperatures all over the
belt were moderate, with sunshine
heavy planting of cotton. although there
seems no dimunition of effort toward
encouraging giving proper attention to
raising sufficient food and feed crops
in order that a possible slump In cot
ton not bring financial trouble. Devel-
opments during the ensuing severa
weeks will go lar toward shaping plans
and financial arrangements will be an
important factor.
What will happen to the unsold part
of the crop is also Of interest. 1t is
not expected in any quarter that the
South will become tired and sacrifice It,
but the trades attention will be direct
ed toward the producer and his supply
of patience If the exporter stays ou'
Of the market, and the domestic spin
ner likewise adheres to a reduced buy
ing policy there may come some re-
vision in values, although the character
of the futures contract and the ad
mitted small available supply of tender
able cotton may give trouble to tn
trader who overlooks the large dis
counts on futures compared with spots
Chances would seem to be excellen
for some rather wild fluctuations, will
plenty of opportunity for the trade
who wants action.