The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-04-03
BY GEORGE WILLIAMSON.

BY GEORGE WlLLIRMSON'
As II not content with what trans
pired during the previous week in the
way OF working upward, the COTTON
market furnished additional cNcitemeht
during the abbreviated one when enden
Thursday evening. and scored new hlsh
levels. The occasion for the rise, now
ever. was not entirely the same az that
which sent prices so high before, anu
strength was concentrated more IN inc
distant months, Conditions regarded as
menacing prospects for the coming crop
accounted largely for the upturn ana
absorption OF contracts against require
ments or raw material for fail delivery
was one OF the features OF the perlou.
The fact that the distant options were
at such large discounts compared win
the nearby ones also attracted the at.
tention OF speculative traders ana
many OF them bought them freely,
thereby helping TO narrow olierehceS
to some extent. -.
For the period under review options
in the New York market gained 10
10 1870 points, while in New Orleans
gains were from s6 to 1874. Apparently
: the traders in the Northern speculative
center are more exercised over the
danger of the short side than they aIS
in New Orleans, for they have iorceu
prices higher there and have meted out
greater punishment TO the shorts, The
climax 10 the rise was reached a. the
opening or iust following 1t on Ihufs-
day, rejecting the influence OF the
rains over the greater part Of the belt
and promise of more, but the disposi-
ton TO accept profits proved llsuIn-
cient to bring about more thah -
crate reaction. Time had not uSeh
given for getting line on how lnueh
the crop start had been delayed by
this last spell of bad weather and sen,
timent was too bullish on the congesteu
condition of the contract narkct 70
admit OF much courage on the part OF
those who felt that reaction was que
on purely technical grounds.
Spot Business Limited.
In the spot department business was
rather limited, although Improvement
was noted In some centers after the
sharp rise in contracts and there
seemed real reason for concern as 70
the new crop. DEMAND ran largely TO
The same kinds OF cotton that have
been selling all along, which were
firmly held and very scarce. The Dug
supply of low grades continued to be
neglected and prices thereon tended to
get farther from those at which the
desired grades were selling quotations
were raised at the leading centers In
the belt from so to 100 points, middling
uplands ranging from 1880 at Augusta
to 4330 at Dallas, Although revision
was not general there was some WIDEN
ing OF discounts on the low grades.
probability have found holders willing
10 shade quotations further.
The week opened with weather out
look more favorable. but support from
trade interests prevented this from
amounting to much as factor. An
other influence against selling was the
report that arrangements had been et-
fected through the enabling powers or
the Edge law, through which S00,0 Ou
bales Of cotton would be sold to the
CEecho- Slovaks during the coming year,
which was considered important In. It's
possibilities of making inroads on the
large supply OF low grades held. The
report was not confirmed, but hope is
still had that central and southeastern
Europe will sooner on later take largely
of this cotton. and thus help lit the
burden OF the holders in the belt.
Over Sunday came untaVorable
weather developments for the eastern
half OF the belt. rains sufficiently heavy
to interrupt work and add to concern
over getting the crop pitched. II was
too cool in the northwestern belt Tor
best results and emphasis was given to
the spreading complaints OF labor
scarcity and its indifference. Foreign
exchange was also firm and higher.
which helped aggravate the position of
the shorts, Tuesday saw lull In ac-
tivity and a market without much
change, but renewed rains and pros
pect OF more sent prices skyward on
taking the lead. The advance culmi-
mated Thursday morning. with May at
40 cents In New York. July at 1871 and
October at 34.25 The triple holidays
ahead and the feeling that sanity ad-
vised realizing caused the slight re-
action from the top. but sentiment con-
tinued bullish, although II was rather
negative In character.
Weather Chief Factor.
The course Of the market from now
on will be determined more by the
sort of weather had than anythAng else,
a The start for the new crop is lAte, esti-
mated from two to three weeks, but
this Is worse than II would be II con-
ditions were normal. especially as TO
labor. Advces- from practically every
section of the belt report labor short
age, while much is said about Its in
efficiency and indifference. although
wagts are higher than ever known, II
is feared that this may result In acre
age being less than contemplated and
that II will also tell In cultivation and
yield. The assumption continues to be
for an acreage increase, but this appar-
emily is being given small weight yet
as reason for encouraging opposition
to the bull side OF the market.
Nothing has happened to suggest
trouble for those who hold the long end
of contracts, and II seems assured that
the height to which prices will go for
matter of judgment on the part OF those
who are long OF them. Talk OF chang
ing the contract by act OF congress
has given a little cause for concern to
few people, but this Is not taken So
riously and Is put down as due to an
effort on the part Of A new senator to
get himself before the public during
the brief time he has to serve before his
successor. who will he elected and not
appointed, can be chosen
Conditions with the mills are about
as they have been, with little apparent
disposition to come into the market,
especially for the low grades The Ger
mans are still not In shape for buying
their needed supplies OF raw material
although the revolution over there has
subsidized and they may soon be In po-
sitiOn 10 make plans for buying more
raw material. The British spinner is
keeping busy and February figures
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