Evening star., 1923-12-05
HEAVY LOSSES DUE
TO FALSE REPORTS
Sharp Breaks in Cotton
Traced to Untrue Cables
Sent to England.
BY j. &. RONIE.

Sp,s al Dispatch to The star.
NEW YORK. December 5.--F'alse
reports regarding the cotton crop
cabled TO England were responsible
for the break in the British markets
Tuesday, according to dispatches
from Liverpool TO growers and trad
crs in the south. The latter are de-
manding today that the author OF the
false dispatches be exposed and pun
ished No hint Of the Identity OF the
cuDprit q is given. but the fact Is
pointed out that large speculative in
terests were enabled To buy in the
slump big volume OF cotton they
had sold short prior to thus week.
The slump IN the English markets
OF $40 or more a bale Monday and
Tuesday was an enigma % American
traders, until Liverpool houses cabled
friends in the south that they had
bale crop from a well known private
crop reporting bureau. AS this
bureau had recently predicted a
crop OF 9.500,000 bales or under, the
Liverpool and Manchester and those
who had bought cotton on contract
proceeded to unload.
Crop Estimate Denied.
The bureau supposed to have put
ont the 100000 bale crop hSnre
d, MED the report TUESDAY, hu: thls
Genial did not hecomt public until
;he English and American markets
had been strongly affected.
When the American markets open
ed Tuesday Liverpool was I5o polht ;
lower than expected. The change IN
attitude abroad which has been one Of
bulliShneSS for weeks, was such that
great many traders were stamped :
ed into unloading their holdings ana
suffered severe losses as result.
Later some of the influential houses
in the trade stepped into the breaCh
in the southern markets. their buying
giving the trade Il breathing spell
until the denial of the estimate hS-
Lres was disseminated.
Most of the recent advances IN COT
ton have been based on the bellcf
that the crop has shrunk since the
government estimate OF l".-fo,uoo
bales was issued. The general peiier ne
in the south was that the final hS-
ares for the crop would not exceed
a750.00O bales. 1t is easy TO see
therefore. how an estimate IRON q
well known bureau so much above
expectations would upset the market
N England. Manchester merchants
were so disturbed and perpleXed that
they suspended trading Tuesday after
noon.
British Elections Watched.
The English markets are not
wrought up over cotton alone. Brit
tSh merchants are preparing to cable
in enormous orders for American n
products should the conservative
party, headed by Premier Baldwin.
win tomorrow's election. The pre-
mier is making his fight on the plat
form of a protective tariff, and i'm
porters are prepared TO order in two
years supply of goods from the out
side world before the tariff regu-
Iations proposed can be made effec-
tive.
Makers of automobile tires. fabrics,
Ioor coverings and other manufac-
tured goods, are prepared TO fill or
ders for England at short notice. but
II is not likely that the fruit raisers
viii bencht. Although the Baldwin
program would place a heavy inpost
on American apples, preference being
given the Canadian fruit, a temporary
increase in tho buying Of AInci lean
apples is not expected. even IL the
conservatives win. az the markets
abroad already are heavily over
stock ed.