The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-08
CHANGE SMALL IN =
COTTON MARKET
Weather Mixed, But Has Good Features Toward End
of Week-Money Conditions Tighten and Goods
Market Showing Effects-Spots Still Dull

as ii was felt that without a quick
change in the weather chances will
favor further revision downward in eX-
pectations, because Of, the labor supply
| and inability to get seed for replanting
| purposes. 1t is generally felt that the
handicap of the crop is now SO great
that it will be impossible to make a
large crop, while there Is abundant
chance of 1t being very small one.
The lateness of start, following the
mildness Of the winter, directs atten-
| ton to the strong probability OF boil
weevil being unusually active this sum
| mer, while scarcity of labor is almost
| certain to result in cultivation being
inefficient and anything but thorough,
Labor troubles also figured, the strike
| In New England having an offset in
prospect for avoiding the strike in the
Lancashire district of Great Britain.
The domestic disturbance did not prove
| much of factor, as the mills were
| not in the spot market anyway, although
| 1t did not encourage confidence. When
! 1t was announced officially that diff
| ferences had been adjusted abroad the
| market reflected it by going up some,
| but it remains to be seen how soon ii
will be felt in larger demand for the
actual.
Cuts in Dry Goods.
OF more direct influence on prices
was the information that conditions in
| the dry goods markets were such as to
result in cutting of prices by distribu-
| tors, which was attributed to widening
| effects of tighter money, but lessen,
| ing demand from the consumers and
| making it more difficult for supplies
to be held off the market. 1t was sim
| ply confirmation of predictions that the
peak of prices had been reached some
| time ago, although time only will de-
| termine how far the reaction will 60
That the markets should reflect it to
| some extent was regarded as natural
and reasonable, but few people expect
| it to amount to much until there is
considerable enlargement Of produc-
lion as compared with consumption.
The stock market displayed reac-
| tionary disposition most of the week
and advices said it was due to credit
| restrictions and to tendency of business
to slow down. No hope of relief tc
| tight money is entertained, while some
predict that rates will go higher vel
| II there is not response to efforts tC
| bring relief through lessened expansion
| in channels that are not regarded as
| absolutely necessary. In Well-posteo
circles it is not felt that the country
is bordering on anything suggestive Of
panic. but that the tide has turned
and deflation has started. That cot
| ton should feel some of the effects Is
entirely natural, but the big thing now
is the new crop outlook, which is fal
| from roseate,
The spot situation is discouraging
but not to the extent yet that holders
are throwing up their hands and asking
buyers to take their holdings at any OLD
figure. The spinners have been doing
practically nothing and exports have
been light but there is still confidence
in the South's ability to wait. The
tightness of money has not resulted in
any action on the part of bankers to-
ward enforced selling. and such is hard
ly expected especially as the policy
| OF the federal reserve heads is not tc
force liquidation, but to take precautior
against trouble by drawing in lines and
putting a check to expansion. More.
over, if there is another short crop Of
cotton present prices will look chear
in few months, unless everybody Is
mistaken.