The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-24
SHORTS COVERED:
BREAK FOLLOWS
July Option Expires at Top But Better Weather and
Other Factors Encourage quidation-Financial
Conditions Attract Increasing Attention.

| for prospective enlargement Of bust
ness with the Near East, Depression
in foreign exchanges and government
securities reflected this alarm and 1t
remains to be seen how soon the pic
| ture can change and the shadow OF
renewal of fighting in Europe be dis
| SDated.
In the United States business con-
| tinued to show tendency to slow down.
extending in many directions: whlle
| fixing of lower prices on textiles was
failing to arouse buying In volume eX-
pected. There was further curtailment
| in operations of the mills and attend
ant indisposition to make commitments
for raw material until more optimism
could be detected Financial conditions
were getting no better, and indica-
tions seemed to favor them growing
tighter as the time comes for. market
| ing the various crops. The tact una
there seems reason for expecting ylelds
OF grain and perhaps more moderate
prices did not seem to offer much on
set for the hesitant and uncertain at
titude in business, which is helped py
the transportation situation Moreover;
the indication that the cotton crop wiz
be larger than thought possible some
time ago also contributed to the nom
buying disposition.
Another angle to the effect of tight
money and unsettled finances all over
the world was the report that China
was experiencing some troubles and that
two large cotton banks had failed; rms
reflected the marked depreciation in the
value Of silver, which has been
factor for quite a while in the reac-
tiousry feeling in Great Britain.
Week for Reports.
The time is at hand for the private
condition estimates to come, and one
has already been issued, although the
time embraced only expires with sun
day night. This authority said that its
, reports put condition at 1874 which
| ia an improvement of 81 over the Of
fetal report for June rs, and COM gn
pares with ten-year average OF 75.6
at this time was ST.. The bearish
feature in connection with the July rs
condition report is that usually de-
terioratlon is shown, although those
| who are not bearish and predict mucn
higher prices later are contending that
the crops lateness is partial offset
for the expected improvement, while the
presence of the weevil in large umoers
| is sufficient reason for expecting ma
terial dropping in yield prospects
| little later, However, for the moment
the bearish view seems to predominant;
| That the market will be governed
| largely by the weather and the condltlon
reports IS quite probable, but attention
will also be given to the sale OF the
new cotton now beginning to come IN
1
counties of Texas. Advices so far. are
to the effect that it Is being sold as
fast rs ginned, and this is expected to
continue, as conditions are SUCH tnat
holding for better prices seems likely
to be fraught with considerable diff
Guilty this fall. One Of the biggest
problems to be faced will be that OF
| financing the movement: There are
numbers OF elements entering into II,
and one thing helping in the present
reaction is that pessimistic feeling IS
in the ascendancy. Tight. money al
fects both spinner and producer, whlle
Transportation difficulties tend to ag-
gravate them and make probable delay
In relief, It seems at the moment that
the producer himself is going to have
to carry more Of the. immediate burden
| than ever before and that the chances
are that the question Of supply and de-
mand are going to share importance
with many other things as controlling
factors over the course Of prices.