The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-10
MORE DECLINE IN
COTTON PRICES
Favorable Weather Continues and Trade Conditions
Reflect Unsettlement in Business, Inducing Spin
ners to Buy Litte-Money Situation Is No Better.

dition not far from the l0-year average.
July in 1917 and 1911 showed slight i'm
provement in condition, the only times
in recent years
Advices from manufacturing centers
and distributing circles occupied much
Of the trades attention, and it was
there that much of the bearish inspira-
tlon found Its source. The recent wave
OF price cutting has subsidized to con-
siderable extent, but IL evidently taught
some lessons, for the trade has been
getting cancellations on contracts and
buying has been restricted with a re-
sultant closing down of some mills and
short time for others. This reaction.
wooden textiles than in cotton, has been
far-reaching in its effects and stimu-
lated nonbuying attitude among the
mills for immediate and future ship
ment of raw material. Apparently the
trade has felt that the tide has turned
and would ultimately reach all commod-
tiles. The worst reports have been re-
celved from the yarn section of the
trade, but all branches has shown dis
tinct slowing down and it has been on
both sides of the water.
Tight Money Hurts.
Financial conditions are credited with
being in part responsible, the spinners
tlndlng credits restricted just as have
others in the trade. 1t is said that
cheap low grades now offering, but
find themselves unable to finance them,
due to overextension of credits before
the banks elevated rates and cut down
on loans. Then, too, they are encour-
aged by the prospects of the crop be-
ing better than thought possible up to
recently, and are hopeful that it will
be one Of good grade. over in Great
Britain they are suffering from cheap
ened silver and unsettled conditions and
rnn q NJ 70
ideas on the crop before buying, al
though recent cables say that the Man
chester district is showing more in
terest in raw material offers.
The disposal of the unsold portion of
the old crop has been at a practical
standstill. and it looks very much like
the low grades will have to be carried
over and worked in with the better ones
of the new. Movement Is light in all
directions and the amount in all hands
one year ago by only a moderate
amount
At the present time the trades atten-
ton is turning to the new movement
season and everybody Is wondering
what will happen. Ideas of value are
conclusions are subject to what the fu
ture will bring and none are beyond the
formative state. 1t might be said that
all cotton mems ideas at present are
ltDulouS, although less is neaTu OF very
high prices, and until something hap
pens to mar the present outlook the
tendency is to shade them. It seems
assured that the new crop will be sold
as fast as possible. at least for a time,
as financial conditions are such that no
encouragement will be given for hold
Ing. The banks are in no position to
do 1t, nor will the factors and mer-
chants be. as they have their hands
full with carry-oyer. The usual spec
ulative buying will probably be miss
ing, as facilities for financing such will
be lacking. so it seems now that it will
be the task of the producer to do
very big part of it, pending orders from
the mills for prompt shipment. That
they stand in need of large amounts of
raw material of the better grade ad-
mits Of no argument, but what they do
as to filling them will depend largely
on what happens to the crop during the
crucial period ahead OF course a
spell of bad weather or an early frost
would completely change the picture
which at this time is not altogether ia
vorable to the believer in high prices
There are abundant possibilities ahead
for market full OF activity.