New-York tribune., 1920-09-16
Decision of Federal Reserve
Board Not to Alter Policy
Blow to Southern Holders
Looking for 4Oc Staple

Decision Of the Federal Reserve
Board not to alter its policy of govern
ing restrictions on credits in cotton,
announced in Washington yesterday
after conference with Southern
planters, headed by j. S. Wannamaker,
president of the American Cotton As
soclatlon. left a mixed impression in
the trade. 1t was generally believed,
however, that the main result would
be liquidation of the crop by the
weaker holders and consequent con-
tlnued lower quotations..
Decreased consumption and large
stocks of old cotton now in waresouses
were held to be factors operating
against holding the new crop for higher
prices. Demands By jobbers for lower
quotatlons on manufactured goods,
which have recently slowed up pro-
duction. have not abated, it was pointed
out, and the manufacturing end Of the
trade was of the opinion that the
.surest way to bring about q readiust-
ment would be to let the law of supply
and demand govern prices for the com
ing crop.
The decision of the board was gem
eraHy approved in the goods trade,
when no" looks for carly sthbiiza-
Non' with the progpcct OF hoarIin.: the
crop for 40 cents a pound yir.uallv
e'lm'nat"d 1t was pointed out that
the price for raw cotton has nv no
means been established, but when the
movement of the new crop becomes gen
tral all over the belt the first sales Will
probably establish a working basis TO
prevail during the season.
Weak holders, it is agreed. will be
forced to market their product if TIGHT
money conditions continue, and it is
bclleVed that this gradual release of
the product Will bring a stoadying in
Huence at low price. The trade does
not look for heavy forced sales which
will break the market. for it feels that
Southern producers are in a stronger
financial position than before the war
and can regulate the movement Of the
crop to a greater extent.
Some in the trade fclt that cotton
Rad about rcache7 its lowest point of
the season, although il was admitted
that tho Reserve Board decision fur
ther complicated the situation so far as
prices for the raw material were con-
cerned. 1t was said, however, that the
fact that the crop is decidedly late and
subject to severe deterioratioin in case
Of killing frosts Now that the time is
approaching VIXEN results are becoming
daily more apparent, it is discovered
that the Improvement has been actual, V
far less than expectations and hopes.
And many things may yet occur TO re-
duce present prospects.
A better trade in gray goods was re-
ported on the market during the dav.
There were numerous inquiries, and
higher prices were obtained on some
constructions Of print cloths. For cX-
ample. 6S-72s, which last week were
available at 15c, sold at l6c for spots,
and October December contracts were
sold on a slightly lower basis. There
was also an exception to the long con-
tinucd cuictude OF sheetngs and sale
of $50 yard goods was made 1T lie:
There was, however. 10 evidence of
general activity in sheotings. 1t was
stated that although sa:con5 were dul!
it was difficult to locate lots against
such inquiries as did come to hand
Sellers generally were more hopeful
than they have been for some time.