The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-08-01
Oliver and Hpughton Letter
New York, July %, 1922.

New York, July %, 1922.
Everyone of you know we changed
our minds about cotton. We were mad,
rip-snorting bulls all the way from
16c up to 23c. And we were not
wisy-washy about it either! After
we figure out situation we take a
positive stand and shout it from the
house tops. Everybody knows this
During the second week of July we
came to the conclusion that too many
people were thnkin the same as we
were. We said plainly in our Market |
Letter, No. 125, July l4th, that things
didn't look just right to us and that
we were suspicious. Remember it?
For instance, consider our last Mar
ket Letter. 1t reached everyone last
Monday. We literally begged every
one eO sell cotton. Onthat day Octo-
bed sold at 221O. Within AZ hours it
was down 122 points to 20S8. Turn
back to that letter and see for your
self! We kkow positively that hun
dreds followed our advice and made
many thousands OF dollars, while still
others at least saved themselves from
bad losses.
We assume we are talking to plain,
sensible business men, so let us get
light down to facts When the last
government report was issued indi-
eating a crop of l,065,0 bales, we
said: Watch now and see if the crop
isn't nearer 12,O0O,000 bales" Now.
it seems most everyone is agreed that
it will be over 12.OOO,000 bales. If in
formation is to help man he must
have it in advance-not after it's all
over. This is true, isn't it? We say
now cotton is going still lower!
If we had you here in this office we
could explain clearly certain things
that would convince you of temporary
lower prices. When man is sici
with fever he doesn't snap back in a
Gay. For four or five months this
country, not to mention the rest of the
world, has suffered from bad case
of industrial fever. We might just as
well look the truth straight in the eye.
All the optimistic opinions of "Thc
Captains of Industry can't dspel the
fact that the coal strike, the railroad
strike and the mill strikes, are bound
to hurt all lines of business sooner
or later. AS sure as fate we've got to
again pass through the convalc. cent
stage, and its going to be hard plow-
ing even before the winter has set IN
good Every honest banker knows this
too! Merely hoping for higher prices
for cotton or any other commodity
won't produce profitable results
Strike settlement or no settlement
the damage has bcen done, and We
must now get well.
But there is a good side to the stu
alton so far as cotton is concerned
For a spell longer cotton should be
sold only on every good rally. But
keep this one fact in mind constantly
when conditions do begin to right
themselves-as they always have and
always will-cotton is going to be the
first to resnnnnd to the improvement.
Why, do ysalS,ss..,s-th that this years
consumption of American cotton will
be 100000 bales against IO,5OO, 600
bales last year? There just amt any
cotton left anywhere-that-s all! For
this reason wntn the next good slump
occurs our honest advice is to pick up
few contrac s.. You can reduce
prices, but you can't kill values Right
now cotton po Sesscs ample intrinsic
value, but it can't withstand other de-
pressing influences and Will go lower
j. S. Oliver & Co.