The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-08
COTTON GOES UP.
Rise in Market Creates Optim.
ism in New York.
New England Spinning Mills
Open Once More.

New York. Sept. s.-There was q
certain amount of optimism in bush
ness circles here today following the
sensational rise in price of cotton,
which has added some $500. 900. 600 in
ten weeks to the wealth of the cotton
growing states of the south,
Bankers, merchants and others
were interested to know just what ee-
feet the rise in cotton would have on
further business revival, which al
ready has brought large orders to New
England spinning mills and set them
going full tilt after months of idle
ness.
John wanamaker OF Philadelphia
teiephoned this exclusive statement to
the International News Service;
y think it will take more than one
eommodityto rise in value to- affect
IN any substantial way the conditions
AT present existing but I believe the
worst of the depressing times is over
SO lar as general business IL con-
oerned.
There will have to be congestion in
large cities like New York and Chi
cago from over-speculation in the I'M
| certa'ntles OF newly formed COM
panies. based on subscription OF
shares of stocks which thus far have
not been marketable.
| =, the rise in cotton is one OF the
galaxy OF new stars appearing every
week and we must be cheerful and
hopeful and talk things down, not talk
| them up"
End of Frozen Credit-Bache.
Mr.. Wanamaker, it is remembered.
was one of the first to detect the buy
ers strike of a year ago and the me-
cessity of cutting prices.
Leopold S. Baehe. head OF the bank
| ing firm of j. S. Bache & Company.
who recently retired as president of
the New York cotton exchange, ex-
| planned the movement in cotton and
its probable effect upon general bust
ness conditions as follows:
| THE upward movement in cotton
was started by persons who had sold
short great quantities of the staple
and who realized that basically they
| were wrong.
Their rush to buy cotton started
the swing upward. not only here, but
/ in every market in the world.
but this rise in prices is more than
a speculative movement, 1t is the be-
ginning of the end of the period OF
fFezen credits and nation-w wide depres-
sion. 1t means loosening up of funds,
not only here but in England"
Washington is JubiIant.
Washington. Sept. S.-Booming cot
ton prices were interpreted today by
high government officials to mean
| the real start of q business revival
1 upon a permanent DdsiS-
| Governor w. p. G. Harding, of the
federal reserve board, and Eugene
Meyer, Jr., managing director of the
war finance corporation, Joined today
in optimistic forecasts of better bust
| ness.
I'm cotton, as in other products, we
are getting back to the old law of
SUPPLY and demand" said Governor
Harding.
New Orleans Market Drops.
New Orleans, Sept. 8.-Heavy sell
4 ing orders on reports of big ginning in
Texas and the usual rush to unloa |
surplus stocks that follows a big rise
in the cotton market, sent cotton down
$40 a bale shortly after the opening
and October. which sold at 1920 cents
at the close yesterday was 17.49 cents
at 1880 a. m. and indications were
that it might go lower. The other
months were off from 141 to 167
points