The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-09-25
BY GEORGE WILLIAMSON

n
Price deflation was under way to
q considerable degree during the past
week, and cotton was no exception. Val
a ues cruInhled in many directions and
8 the atmosphere was apparently impreg-
/. mated with expectations that the tide
n having turned after a long wait the
4 probabilities were that the recession
would extend quite distance. Some
4 of the factors, more or less psychologi-
= cal, were cumulative In their effAct and
tended to accentuate the attitude of
Withholding participation until the skies
d Were Clarified and business people
/ could survey conditions with less con-
4 fused visions.
Resistar ce to the crash, which did
no.. prove sensational or disorderly, was
had. for q time in the menace of an
4 equinoctial storm in the gulf, which was
The first of the season but timed for
eTenslve damage in case 1t swept into
4 the bottom belt. When this roved much
I less DANGEROUS than feared, its intensity
being limited and the rains therefrom
generally moderate and extending over
but limited areas. the courage Of the
I bearish element returned and they ex-l
ercised but little caution in taking adj
vantage Of some other developments
favorable to that side.
The review period closed with futures
I in New York from 275 to rs points net
I to the bad compared with a week ago,
while in New Orleans the decline was
from 241 to 100 points. At the closing
/ level values stood approximately 1000
I points, OF $50 The bale, under those rul-
ing In the, future department. one year
ago, which scarcely represents the diff
ference in general sentiment now and
{ then.
In the spot department prices crum-
bled sharply, but activity was confined
to Texas, as the crop in other sections
is so late that receipts are Just begin
ming in the lower districts. Quotations
at Texas centers we're reduced 220 to
. $50 points, middling 24.95 to 25.75 cents,
while elsewhere reductions were 1850 to
800 points. with Memphis the highest
center in the belt, although quotations
are still called nominal. Sales in Texas
were fairly large, indicating that in
spite of the increasing dissatisfaction
among shorts and slight upturn came
decline there was more than sufficiency
for the limited demand.
Period Opens Quietly.
The week opened with traders dis
posed to hesitate pending results as
to the effect on demand from reductions
in the price of goods.
1t was felt that perhaps this presaged
revived demand and thus fairly good
weather had an offset. But on Monday
cables from Liverpool came dsappoint-
ing, while domestic advices failed to
denote better inquiry for goods. The
discovery Of a storm in southern waters,
among shorts and sights upturn came,
! which continued for a time next day.
But discouraging news from Liverpool
as to the labor situation and of poor
trade at Manchester countered the
,Horn, IS an influence and the result
Was little change in values.
On Wednesday bears had field day
when the storm proved barren OF bull
ish effect and there was announced by
the Ford automobile people sharp cuts
in prices, regarded as symptomatic and
Of far-reaching Importance from a SEN
timental standpoint. Some support
came, but it was superficial and mere
~ delayed aggressive selling. The ac-
tion Of Henry Ford, admittedly due to
clear reading Of the signs of the times
and a move toward trying to stimulate
buying OF this staple in its line was
followed by other price reductions be-
fore the week closed, extending in
many directions. 1t proved highly i'm
portant in its bearing on the cotton
market, for it whetted the publics taste
for relief from the long era OF high
prices and naturally stiffened the de-
termination Of large element to con-
tinue it'll Indifferent buying, To what