The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-22
WEATHER BETTER
MARKET LOWER
Widespread Rains Over Belt Cause Bulge But Reac-
Z, ton Comes, Helped BY Wave of Trade Reaction
Resulting From Restricted Credits-Spots Are

and appreciation of the difficulties of
making more than n moderate crop
have disc ouraged sellers. especially as
options continue at discounts compared
with spots and the holders of the lat
ter are not expected to quit cold and
put themselves at the mercy of the
buyers.
The spectacular development of the
week was the outburst of price reduc-
tons in certain lines Of business with
ing confidence in the entire business
fabric without additional shaking
down. The, most serious reductions
have been in lines where restricted buy
ing by the consumers and the reduc-
ton Of loans by the banks could be
goods by speculative holders generally
credited. There was semidemoraliza-
ton for time in the security markets
as well as in grain. which was appar-
emily due to practically the same tight
ening of money. From across the sea
came advices Of some kindred effects
and Liverpool was anything but opti-
mstic and Manchester failed to be
stimulated by the settling of their labor
trouble. The contention that the trou-
bic was not serious enough to shake
the genuine foundations for continued
business activity, but was largely on
the surface and would be followed by
more stable conditions, did not obviate
the use of developments as an offset
for the news from the fields.
That Trade Reaction.
1t is contended by some observers
that the ultimate of this present effort
to reduce stocks, whether voluntary or
forced by money conditions, will be
bullish on cotton, as more reasonable
prices would naturally encourage con-
sumption, the shortage of goods in the
hpy, 80 bath fn1 hn
world over. There is, however, the
possibility that the reaction may ex-
tend further than anybody now an
ticipates and bring unexpected liquida-
ton by holders of the low grades of
raw material although such is hardly
so far does not help the ultimate con-
sumner much, although it may unsettle
some of the enormous profits which
have been reaped by the manufacturers
and some of the distributors. At best
there is perhaps no chance for prices
to work higher than they have been,
even though they do not get much
lower until the world shall have come
back to larger production of neces-
stiles. Cotton is not thought to have
gone to the heights reached by, many
other products, even some of the ne
cessities, and If the crop proves a
moderate or short one there may be
interesting developments during the
next few months.
In the local market sales for the
week totaled $500 bales, but most of
this was in a few lots sold at sacri
flee by holders who were evidently in
need of some money The prices re-
ported evidently afforded basis for the
radical revision of quotations on Fri
day, when there was cut of 600 points
on ordinary, varying from that up to
so points on middling. A slight re-
vision was made earlier in the week.
Buyers returning during the week from
the mill districts report absolutely no
interest on the part of spinners, so it
looks like the holder will be compelled
to exercise more patience.
Reports from this territory are still
very bad and this district is perhaps
the worst in the entire belt. An as
sured reduction in acreage is due to
the lateness, to continued rains and the
labor situation, while chances also favor
less area planted to staple cotton than
expected,