Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-01-10
n. \. COTTON MARKET
STEADY litter DROP
BY ESTES DOREMUs

The generally optimistic outlook
for cotton in 1922, as expressed by
the conservative element of the trade
at the close of the old year, has not
been materially minimized by the
recession in values the last week,
though brokers advise caution on
the long side for a time, as it is not
believed that the break was fully
run it's course. Setbacks, however,
offer opportunities for quick profits
natural recoveries.
The feeling of hopefulness in 1921,
responsible for an advance of $15
per bale from the low levels of last
November, and ending with a 25-
point squirt in New York futures at
the opening of the first business ses-
sion Of 1922, changing to one OF
nervousness and uncertainty, appa-
rently promoted by banking develop
ments in Chicago and the assign
ment of a large private wire house,
gave weacy bears their opportunity
to hammer prices and they made the
most of it, losing sight of no pre-
text, however slight, to aid them in
the raid.
The long drawn out advance,
which carried January and March
options past the Decent level on jan
uary 2, probably found the market
pretty heavily bought and conse-
quently susceptible TO selling pre-
sure. 1t appeared to be the psyche
logical time for a drive by shorts,
and longs, taken by surprise at the
quick turn, rushed to cover, with
the result that the selling pressure
was considerably augmented by the
unloading of their commitments.
? Close Steady Saturday
Although bullish support largely
was withdrawn with a view to let
ting the drop run it's course before
making another movement on the
constructive side of values, the mar
ket showed decided tendency to
react from sharp breaks. The close
of the short session Saturday found
the tone steady with prices at net
advance of from 7 to 10 points from
the last of Friday
March, after selling as low as
1898, rose to 1926 and January to
1912. January had touched 18.47
and March 1885 during the session,
but reacted near the close on week.
end realizing. Last prices, however,
showed that the market had los
much OF it's nervousness and uncer-
tainty, and although further recess
sions are expected by the trade, it
would not be surprising if a new
bull movement developed this week.
The decline had the usual ten
dency to harden the spot situation
and offerings were few and far be-
tween.
Pessinistic rumors have been
largely discounted and the announce
ment that committee of creditors
had taken over the affairs of New
York importing and exporting firm,
advices from Manchester that coarse
yarns were in good demand and that
some British spinners had resumed
the payment of dividends, has had a
tendency to clear the atmosphere.
Ginning Figures Small
Manchester also reports better
business with China and news comes
over the cables that optimism among
English mill men is reflected in plans
for the construction of new factories
in the Lancashire district.
Private returns Of ginnings report
$4,000 bales for the last half Of De-
cember as compared to $4,000 bales
for the same. period year ago.
Sales Of print cloths in Fall River
for the week are estimated at 170,-
900 pieces, considered good at this
season of the year.
Taking the situation as it stood at
the close of business Saturday it
would appear that the long side is
to be favored on all reactions and it
appears equally certain that the con-
structive element in the market soon
will make itself felt.
The New York Journal of Com
merce observes that weekend sta
tistics were bullisn and has this COM
ment on the situation:
"Stocks rallied, also exchange, but
an early decline Of $3.50 to 50 per
bale grew out of vague rumors OF
difficulties among a few small con-
Germs in the financial district. Liver
pool ard New Orleans also had these
rumors. They inquired about them
anxiously. Their prices dropped
Precautionary liquidation Was rather
general on both sides Of the water.
Nothing serious, it is true. along the
lines indicated by rumor, really &C.
curred".