The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-27
LITTLE CHECK IN
COTTON WEAKNESS
Temporary Upturn Comes When Shorts Cover But
Fresh Outburst of Weakness in Liverpool Sends
Prices Crashing Downward-Spot Demand Is
Limited

The foreign market apparently had
given way to another spell of hys-
terra, helped by easiness in the
Egyptian market, by fresh financial
troubles at home and encouraged by
further evidence of weaker spots IN
this country. There was recon-
mendation from the master spinners
for further curtailing consumption of
American cotton, while no treason
was presented for doing any invest
ment buying. In short, the weight
Of the bales was again making itself
felt and the foreigners were allow
ing the Southern holders to carry the
burden.
Mills Buying Little.
In this country the mills have not
shown signs Of doing much. for they
are not getting the business expected
at the lower scale of prices. The dis
tributors are making big effort to
tighten the stocks on their shelves,
but reports do not indicate that re-
suits are satisfactory. In the mean
time the retail section of the trade
appears stubborn as to cutting prices
sufficiently to induce consumers to
buy what they need. They have. not
slashed prices anywhere near as
much as raw, material producers
have been forced TO accept. They
seem to be clinging to a hope that
they can still exact their pound of
flesh from the public. which has
been so reckless in its expenditures
for several years, but which seems at
last to be awaking to its duty as
well as opportunity.
Sales of spots have been small all
the week. but for time reports in
dicated more disposition to resist eff
forts to buy at prices under those
previously offered. The needs of the
trade appear small and demand at its
best was for small lots. The census
report on ginning, made public on
Monday at the opening, showing that
S,920,000 bales had been turned out
to Nov. H. compared with 100000
last year, stimulated faith in larger
yield ideas. But other things at the
time were dominant and the effect
of the bearish showing had been dis
counted. S al
However, there is no doubt prep
aration for the coming government
estimateton the crop, promised about
Dec. 10, as official confirmation OF
figures around 12,500.000 to 13,O00,-
600 bales would help bears push
PiiSSo VII holSI uHl0oS SuIIeiil lucas
are wrong.
Quotations for the actual lost at
the leading centers approximately 100
points, middling uplands ranging
from about Is to f6 cents. Some ad-
vices from the interior told OF very
cheap prices, but such represented
distress sales, which are numerous
in view of the financial and credit
situation. There istapparently moth
ing to check these until liquidation
goes further or something induces
investment buying The latter is be-
ing talked OF more and more, but fl
nancial conditions are still against
such on sufficient scale to be much
of a factor yet. There is in we'll
posted circles confidence In money
getting easier as the weeks pass, but
until the turn of the year it would
seem rather foolish to expect much
relief, Is there are so many require
ments to be met and even normally
money does not cheaper much until
the new year begins.
The movement to undertake re-
lief by looking to the new crop sea-
son is gaining Roadway, but as far
has only reached the talking stage.
Plans are being laid for q powerful
piopabduud loF cutting acreage ana
there will be in all probability much
success attending such, but the most
urgent and pressing problem is how
to handle the present situation and
avoid bankruptcy, 1t is notable,
however that so far the situation
has not brought the number of fail
ures expected, although this is due
largely to the policy of leniency ad-
hered to by practically all branches
Of the trade.