The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-04
BY GEORGE WILLIAMSON.


Although a recovery of nearly 900
points was witnessed In the price
of cotton during the past week, the
lowest on last Saturday for March
in New York having been l4.15c and
the highest for the same option at
1880 on Thursday, developments
failed to stimulate an impressive de-
gree Of confidence in higher values,
Rather, II might be better said, there
was rising hope that perhaps the
worst in the downward course of
prices had been witnessed. Only a
moderate advance compared with the
previous weeks closing was re-
tanned, amounting to 26 TO 81 points
in New York and 81 to 80 In New
Orleans. In the spot department
changes In quotations averaged
about dogfall, for some eenters left
them a little higher. while others re-
corded slightly lower,
More change In sentiment took
place than the difference in quota
tons would indicate, although opin-
ions continue TO be more or less sub
ject to hurried alteration. The ex-
perience OF the past several months
has been too severe for anybody to
risk being too positive. Precon-
ceived ideas have undergone too
much slaughtering and the world I'M
settlement is still too great. Calcu-
lations as to what would be reason
able progress toward stability have
been upset too often, until now the
average observer finds himself pre-
pared for almost anything and not
surprised In the least when II comes,
But one OF the underlying reasons
fAv. che tx, thu prinn tRand
was the Gerry fact that pessimism
was so rampant and values had
erumbled so much and so continu-
oualy, the opportunity for a play
against the bears and shorts proving
too tempting to be resisted, 1t re-
CURED only a little evidence of in
vestment buying TO start shorts to
cover, for they recognized that when
cotton reached around IL cents for
contracts, and lower than that for
the actual in the interior, there was
great risk in trying to force II lower.
Some Strength Left,
History was recalled and the alb
sence Of panicky feeling in the proc
esa of liquidation suggested the wis
dom OF admitting that the country
was by no means ruined and that b
considerable part Of the effect OF the
reduced prices was merely trans
fer Of paper wealth. The spell of
stability during the previous week
connected some appreciation of this
fact, but Ii proved fleeing when
Liverpool had an attack OF pessim-
ism. When the rise of the week just
closed had reached it's crest, about
$40 the bale over the bottom, one
of the potent aids to another sink
ing spell was the information Of
ficially that the British mills using
American cotton had voted TO run
on half time for an indefinite period,
starting at once. This served to
warn adolescent bulls afresh of the
danger of undertaking an upturn In
values until evidence increases that
the basis is permanent and healthy.
When the most active position in
New York broke through Is cents,
helped by liquidation of important
interests In the spot position, trade
and investment interests began to
absorb freely contract offerings,
preference being given to the de-
ferred positions. This brought about
some adjustment In differences and
helped to distribute the burden over
cuNpEdi HluutHA OF inc SpcCuidllVe ue-
partment of the market With more
strength displayed and spot interests
quietly picking up offerings in the
belt came a more plentiful supply of
bullish or favorable news. proving
the axiom that spectators can find
the sort Of news they want when
the will TO do 81 exists.
There was 81 ght Improvement in
reports from tho dry goods markets,
while here and there some mills were