The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-07-19
Stocks Show Firm Undertone
New York, July II, 1922.

In the face of such disturbing fac
tors in the current situation as the
threatened collapse of the German
financial structure, the possible conse-
quences to the rest of Europe, and the
rail and coal strikes in this country, !,
the security markets have displayed
unusual resiliercy There has been
some liquidation accompanied by nat
ural short selling, but the short in
terest found itself in an over extended
position before the fact was realized.
1t was not found possible to induce
any general selling IA a supply reser-
voir for covering operations, and, as Il
consequence, the short lines were pru-
GENTLY reduced.
In spite of the representations made
by the German government there is
evident reluctance to accept the sit
uatiOn as being as darkly menacing
as those presenting the case of Ger
many would have the world believe.
Allowance is being made for window
dressing. Some Of the patients symp-
toms of illness may we'll have been
the result of scheming to fool or con-
fuse the doctors. Early this weeh
there was ground for believing that
the July 18th indemnity payment
would be met, and some revised agree
ment entered into whereby the pay
ments for the immediate future will
be softened or held up, and the cut of
$4,000, 900 gold marks on the 50,0O0,-
600 mark payment due Saturday was
not expected. American banking in
stitutions with German trade relations
have been putting their houses in or
der and the dollar balances in German
institutions have been reduced to
about $50,000000, while the extension
of credits has been curtailed greatly.
There is the prospect of the cotton
crop being insufficient, with the carry
over of probably less than 100000
bales Cf spinnable cotton, to last
through to the crop of 1923. This is
4 very real danger With the dwin-
ding of supplies as the remaining
months Of this calendar year pass by
cotton prices may be looked to for an
advance to whatever level, in the then
general situation, will operate a check
upon consumption and the forcing of
mills to part time. No one can say
today what the price will be that will
operate as check. 1t will depend
upon too many as yet undeterminable
factors-the European situation, the
situation here, the persistence of con-
suming demand and the buying insist,
ence of distributors in reaction to the
demands of their trade We believe it
will be considerably above cents.
Exports of cotton continue. Thus
far this cotton year they have reached
100000 bales which is 675,OOO bales
above the same period of last year.
Stocks abroad are below those of q
year ago-Great Britain with 932 700
bales against 1,212,O0O; Bremen with
100000 bales against 693 900 bales
and so on. The worlds visible supply
is 4,d50,OO0 bales of which 100000
are Americans, against 6,419OOO bales
q year ago including 100000 Amer
leans. ur port stocks are at 625, 1000
bales against 100000 bales a year
ago whidle interior stocks of 500 900
bales contrast with 1,24O 900 last year.
The statistics, however they may be
analyzed, contribute to the bolsterinc
of bullish sentiment towards the price
of cotton. The trade outlook, while it
may be somewhat confusing to the
view if the eye is turned only to to-
days conditions, is likewise encourag-
ing to constructive price forecastine.
The crop outlook is poor from crop
standpoint, which means bulish as to
the price likelihood Today, tomor-
row, next week, the price may hest
tate. may sag from day to day, may
show irregularity. But on the easy
loints the late-year months may be
taken on in comfortable assurance
that over the next few weeks the com
mitments should show siZable profits.
which occasional opportunities for
taking the gains and repurchasing at
moderate recessions.
Springs & Co.