The Birmingham age-herald., 1924-08-26
COTTON LETTERS

NEW YORw, August 25.-As was ex. pected as result of the government on Saturday, published after the market closed, a sharp. decline took place in Liverpool as a result our mar ket opened a cent pound under Sat urdayss closing prices and after hesi- tating, broke below 24 cents for the winter months. American trade in- terests were large buyers on the break, absorbing contracts and giing the mar kets much steadier tone than would have been expected in face of the uni- versal expectation of large crop and lower prices.
 The whole trade south are convinced of a very large crop, as they believe that the crop has passed through any of serious damage from weevil or other insects, and that the only danger now Is early frosts with the necessity of replenishing stocks of raw materiail, de believe that the early will be taken care of much better than is generally anticipated, and while we cannot expect an adance if the crop is as big as believed, we neverthe- less doubht if the decline is as rapid or as soon as most are looking for.
 It Is also well obear in mind that after such a prolonged period of clear wether 1t could easily follow that we could have rainy spell, which would probably do more harm than good at this late date.f Liverpool futures are ber, 13.67d.-Hubbard Broa. & Co.
 NEW YORK, Aug. 25.-Cotton opened about a cent down this morning, which was about the trade expectation on the government crop indication Saturday. Selling, both fur domestic and foreign account, was general, the pressure car
 
 morning, 592 points under the high of July 2S. There were light scattered showers over Sunday, with few in northeastern Texas, where maximum temperatures continued high. The sup port of the market today toward 24c for. October came from sp1nners calling and shorts covering. Lower prices look prob able under the impact of the movement and hedge selling. barring unfavorable change in weather condition.-JOhn F. Clark 6 Co.
 NEW ORLEANS, Aug. e25.-The mar ket opened 100 points down on selling and liquidation orders brought on by the governments estimate of close tc 13, ,000 ,0o0 bales. It eased off 20 points further during the day, mostly on short selling. Early rallies met a good deal of selling and did not hold well, but considerable covering developed in the late afternoon, when contracts became rather scarce and values rallied 25 points and held most of 1t to the end. The selling was apparently based on sentiment rather than anything else, as a large number of deterioration reports were received from Texas, Oklahoma, Arkansas, Alabama and Georgia. Our information leads us to believe that the crop Is fast losing ground and that the developments of the next few days will discredit estimates of around or above 100000 bales. The buying side looks best at the moment.-Fenner G Beane to Kahn & Virgin.
 NEW YORK, Aug. 25.-Liverpool ac- cepted the government report as indi- eating goodIy sized crop, and cables were quite as low as had been ex- pected. Our market has been dull all day, each rally of noticeable size at- tracting cotton. The disposition here today, however, in the main has been to avoid selling on big breaks, and this has given the market an appearance of While there is sufficient danger ahead of the crop to make sales on breaks undesirable, we still believe that, aside from rallies brought about by crop scares and an oversold condi- tion, prices will work haltingly much lower.-Fenner & Beane to Kahn 6 Virgin.
 NEW ORLEANS, Aug. 25.-cOtton was down $6 bale in the early trading Monday. October declined to 23.40c short rally was back again around the low figure at a. m.
 Liverpool was about 60 penny points down and about 120 American points worse than due near the opening here.
 The big decline at the opening was about as expected following the gov ernment report Saturday, when a crop of 12,s56,oOO bales of line cotton was forecast.
 The early weather reports indicated some scattered showers along the Att lantic coast, In Oklahoma and Arkan- sas. The balance of the west was clear and dry, with high temperatures in both sides of the belt. There was considerable speculation as to the probable course of the Atlantic storm, for which an official warning remains for the area between Hatteras and Miami. The intensity of the dis turbance was said to have increased. Some traders expect the storm to move inward arc bring damaging weather into the AAaut.os, but fespite the storm fear the bearfsA feeling predominated In the market and there Nas- little dis position to buy the market heavily during the eaFiy trading
 Dry goods markets report fairly good inquiry with mills beiag pressed to accept orders but only, for near de- livery There were reports of additional mills resumiug operations or bringing time to full schedue
 Exchanges were avorable.-Levy & Aronson to s. R. Stewart.
 NEW ORLEANS. August 25.-The Isrger crop forecast by the government, r.. .956 900 vs. 12,35i 900 indicated as of August 1, compar.ng with last years final crop O. 10 59,OOO, linters not in- cluded. depressed all cotton markets to- day.
 Liverpool caIn9 much worse than due, Rnd there was further extensive nqui- anticn in Amer lcan markets this morn ing.
 Present prices about discount prevail lug conditions for the time being, as values are about Sc lower than the re- cent high for fall deliveries and there will likely be more disposition to buy around the 23.50c level for October, per haps on the part of spinners< as well, since the average price of middling last afh son was S1.B7c per pound and 24.06c ? fodnI season before last. ThIs years crop ia not made yet, be drought continues over the greater