The Birmingham age-herald., 1921-12-13
Priuate Wires Report
 Traders Surprised
SHANNON N co.,s LETTER

SHANNON G OOs'S A1A AASR
 New York, December 12.-(speciai.) The ~cotton estimate proved well above current expectations and nat urally led to much nasty selling for beth accounts, under which prices melted away rapidly since support faded away. It remains to be seen If ginning figures will furnish confir- nation of the estimate, but bullisn ideas have undeniably received jolt from which they are not likely to re- cover quickly unless encouraged by continued favorable trade advices, making 1t seem probable that con sumers will be forced into the market for fresh supplies in considerable Vol- ume.
 The addition of a few hundred thousand bales will not necessarily imply any important change In the final situation, but the effect on sen timent of such a report cannot be lg nored and the influence on the spot and goods markets will be closely J watched. The total supply at the end | of the season will not be essentially ! modified by the increase in the esti- mate over what was generally looked for if the figures prove correct, but if trade conditions are upset by the report 1t will be corEespondingly dif- ficult for prices to climb back and buyers should more than ever await favorable opportunities before get ting in.
 The stock market has been only moderately active today, and without special trend, though maintaining it's generally firm trend. A news item of interest has been that the long pend ing controversy with Japan over the Island of Tap has been definitely set tied. This is one more evidence Of the great events which are in prog ress at Washington.
 The Copper shares have shown dis tinct firmness for some time past and appear to indicate quiet accumula- tion. Anaeonda is especially strong, influenced by the report of proposed deal with the American Brass com pany Royal Dutch has been the fea- ture of the oils, rising to new high point The recent cash dividend was somewhat of a surprise and has had a favorable effect. The rails hang fire and not unnaturally, when the whole wage question is coming to the front again The market though quiet, has avoided the reactionary tendency which has often occurred on Mondays and shows decided latent strength. based upon the new era which seems to be developing for the world.
 Sterling exchange reached a new high point on this basis There has been quite an important decision of the supreme court today, holding in- valid the effort to tax. gas or petro- leum in pipe lines when crossing state boundaries. This is a good thing for the oil companies-Post & Flagg.
 HUBBARD's LETTER
 New York, December 12.-(Special.) A better trade demand in Liverpool brought an early improvement this morning, all of which was lost on the government crop estimate of s. $40, 900 bales, which was larger than the trade had anticipated. Aside from the instantaneous effect on the market, the trade has not yet had time to digest the report.
 To very large extent, the inn mediate concern of the market will now depend on the attitude of the south. If they offer their cotton freely now, the market will not stand the pressure. On the other hand. there Is no question but there Is a decided improvement in busi- ness and if our market does not de- cline better demand from the spinning trade can be looked for.- Hubbard Bros. and Go.
 S. R. STEWART X CO.'S LETTER Birmingham, December 12 = A strong Liverpool came over this morning 15 points better than due with private cables reporting a bet ter feeling generally, political situ- tion more favorable. Our markets opened 10 to 15 above Saturdays fin als and had good tone during the early part of the session on the new highs for sterling exchange, the good Liverpool and the favorable political situation. Liverpool was a good buyer and there was quite a bit of new domestic buying. The market met profit taking around 17.50 for March, New Orleans but held steady just under this figure awaiting the crop estimate. The governments estimate figures were S,340.000 against 12,987.0o0 last year and five year average of 11,4S1,- 900. These figures were away above general expectations and the mar ket broke quickly but the demand for January, and March New Orleans on open orders around 16.25c came in to play, checking the decline. The finals were about 50 points under Saturdays, A message from New Orleans said the weight of bales was averaging 514 pounds so the count in running bales is very likely to be much less than today's esti- mate which is 500 pounds gross bales. Sentiment in New York and New Orleans after the close be- came, many said, however, that cot ton was A purchase around these levels any way. basing their pre- diction on improved trade and eco homie conditions-S. R. Stewart X