The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-27
BY GEORGE WILLIAMSON.

Only temporary interference TO the
downward course of cotton values was
had during the past week, after which
lower prices than ever were recorded
and what appeared to be little hope
of improvement and optimism gave
way before recurrence or the
gloomy pessimism. The chief basis
for such improvement as was had
lay in the fact that apparently all
the bearish news for the time being
had been received and the technical
position of the affair was favorable
to at least a period of negative
strength. the short interest having
been accommodating for some time.
But while the American markets were
resting and returning thanks that
conditions, as bad as they were,
could have been worse things hap
pened over in Liverpool. That mar
ket on Thursday underwent a sharp
decline. thus casting a wrench among
the cogs and checking what promised
to be a little better movement of the
actual toward the hands Of the spin
ners.
On Friday all previous low levels
were smashed and with IL came re-
vival of confidence that the market
is headed still further downward. APP
parently the liquidation period still
has some life to live, for In all the
speculative markets are shown evil
dences of its incompleteness. Cotton
merely shared with other commodi-
ties the, progress of deflation, for the
strike of the buyers continues and
there is small progress toward
enough improvement in financial con-
ditions to enable anybody to take
hold and buy speculatively, even
were they so disposed. =.
For the week the list OF options in
New York finished 100 to 40 points
net to the bad, while New Orleans
lost % to 30. The December option
was under more pressure than the
others. rejecting the situation in the
spot department where prices pre-
vailing make II easily possible for
contract deliveries, thus inducing re-
duction in premiums as longs tried
to get away before being caught. The
smRllness OF stocks at both specuia-
tive centers explains fewness of no.
tees, but the fact that II Is easily
possible TO find an outlet for. the act
uAl through deliveries sufficed to
place an effective weapon in the
hands OF those who were on the SELL
ing side.
Strength Not Impressive.
At no time could 1t be said that
strength was impressive or that buy
ing suggested hope of much i'm
provement. Rather 1t reflected a feel
ing that the worst had been wit
messed and that values had gotten to
levels tpstifying providing for some
of the needs OF the trade. Slight
easiness in the money market, call
rates in New York having declined
some following the increased flow Of
funds from the interior and from
the progress OF liquidation. together
with reduced demands, caused the
stock market to take turn for the
better. 1t was hoped that this pre-
saged similar developments in the
other markets. Moderate steadiness
followed ard then some Improvement
in trade buying. while the spot de-
partment Quickly showed signs OF
more stability Holders we're not so
rampant about turning loose al
prices regardless of previous ideas
of value.
The upturn extended until Wed =
nesday. when March In New York
touched as high as 16.7Oc, which com
pared with its season low of 1890.
There was, however little snap to
puNing and offerings increased on the
way UP. Some reaction came before
the close Wednesday. but the biz
drop came Friday after the foreign
market had been so weak and failed
to show signs of doing better. The
spot department again seemed in the
tthroes of another sinking speIl and
buyers were few and disposed TO
make few firm offers.