Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-13
ATLANTA MARKET.
At 20.75, HIGHEST
SINCE NOVEMBER
Potential Yield of State
Nearly Doubled in Value.
Since P|anting-Business
Feels Effect of Better Price
BY ESTES DoREMUS

approximately 100000 bales is worth
sS3,2O0,OOO today against s6S,O0O,00O
week ago and $44,00O,OoO at the
time it was planted.
These figures are based on the lat
est Atlanta quotations for the staple,
which reached the high mark for the
present movement Saturday when the
price was officially fixed at 20.75 cents
per pound by the Atlanta CONNER
average 5OO-pound bale of cotton is
worth slightly less than $104.
In the past week, the states crop
has increased $15.2o0,O00 in value and
since the seed first went into the
ground it has come within $4,S00,00O
of doubling it's value of $44,oo0,o00
at that time. Similarly the entire
crop in the south has nearly doubled
and now is worth 1871, S4s,000.
The price reached here Saturday.
not only is the highest Of the present
movement but higher than 1t has been
at any time since November last,
when it was quoted at 70 cents. II
is within 20 points, or $1.25 per bale
Of the 21-cent mark, reached Novem-
Der 4. The previous high mark for
the present movement was 1925.
which was reached at the peak of the
future advance, only to break IS per
bale when futures collapsed from
top-heaviness. Friday 1925 again was
reached and the advance yesterday
was the largest of the week. $7.5O
per bale.
History Repeats
The advance in the price of cot
ton here and throughout other Geor-
gia spot markets reflected another
New York and New Orleans ex-
changes, which earlier in the week
carried all deliveries to new record
marks for the movement, only to
suffer technical. BREAK of a. greater
part of the gain and then to recover
within less than SIS per bale Of the
high for October contracts, with 9TH
er options we'll on the way to tho
seasons record. Futures showed big
gains Friday and Saturday after the
break, the fluctuations being as sem
sational as ever seen on the big ex-
changes. On two occasions prices
ranged in one day the entire limit
of SO per bale allowed under the
rules, New Orleans scoring the limit
in both directions on opening bids.
1t was a wild week with first
longs and then shorts having the adj
vantage, the former coming out on
top at the close of business Satur-
ago when the market took a three
day holiday over Labor day.
The break was to be expected in
view of the heavy speculative inter-
est in the market and was forecast
by experts who advised against buy
ing on a continually advancing mar
ket, or in terms Of the street, on
hard spots" The recession gave
the market a decidedly healthier
tone, in the opinion of cotton men.
and allowed it to seek a normal
level for the movements level
ditions unaffected by speculation. 50
that it might move naturally. The
opinion was that from 1S to 10 cents
was a fair price in view IF actual
conditions and this appears to have
been borne out during the past week.
Some go so far as to declare Is
cents will be the minimum price for
the crop.
Near Months Show Gain
An outstanding feature of the fu-
ture market last week was the added
strength stre1gt s shown by the near months
either by straddle (buying near ard
and the comparative weakness Of
selling far months) or through the
willingness of the trade to pay
premium for October and December
contracts because Of fear of damage
storms, and subsequent lowering
Of the grade. Near months, which
had been trailing the distant ones
during the sensational rise. took the
tween contracts changing approxi-
mately S. per bale in some instances.
March, which early in the week was.
ninety points over October, dropped
behind and Saturday on the close was
seventy-five points behind.
The close in New York Saturday
found the entire list we'll beyond the
twenty-cent level with the exception
of May and July. which were 1880
and 1856, respectively. March was
ing, after having gone as high. as
20.48. October was up 100 points
over the previous close at 20.75, De-
cember up ninety-seven points at
20.S0. and January up eighty-fiye
points. Compared with the near OPP
lions, which gained from 1925 to So
per bale, the far ones gained o@lY
$3.50 per bale.
100 points at 21.10 and New Orleans
spots gained 125 points at OPS.
fifty points, or $3.50 per bale under
Atlanta.
Business Feels Benefit
The effect that the advanced price
of cotton has had on business, big
and little, is as pronounced today
as it was week ago, when the bene-
fits first were beginning to be felt.
Wholesale houses report big in
creases in orders and one leader
expressed 1t to the writer: 1.-THE
farmers and country merchants are
the happiest bunch 1 have run across
in a long, long time"
The prospect of a good price for
the staple has given the merchants
courage to replenish his stock ana
the farmer is buying necessities that
he has had to forego for manv
patient months. Old debts are being
liquidated and once the movement
of the raw material gets we'll under
way further liquidation may be look
ed for
In addition to the returned profit
able business of raising cotton, the
farmer has improved his commercial
position through crop diversified
ton and not only is raising enough
produce and grain to meet his needs
but in many instances will have
enough surplus to sell. He no longef
will go to market to buy for his
household needs. he will GO there to