The Birmingham age-herald., 1924-08-09
COTTON LETTERS


 NEW YORK, Aug. s.--of course, the ing feature in the market. This shows an indicated crop of 12,861 ,000 bales as of August 1. It was about A standoff, but during the middle of the afternoon there was considerable slow liquidation on the reading of the detaiiss wherein the government states that a great DOT tion of the crop is doing spiendidiy. It must not be forgotten, however, that this report is made up as of August 1, and there has been practically no relief to the drought in the greater part of the richest producing sections of the state ofs~Texas~ In fact, lis quite remarkable that this year there is such universal feeling that Texas can raise cotton crop in spite of higher tenn peratures and dry weather, q thing un- known in the past: Nevertheless, the feeling seems to exist this year that 1t is better to lose by the heat than to lose by the boil weevil, which, 1t is be- lieved, would appear rapidly if any rain fell.
 From the bigger and broader point of view, the acceptance by the Germans of the Dawes reparation report and the reduction of the discount rate of the federal reserve bank are extremely sig nificant. It means a gradual festofa- ton of the gold standard in Europe and Improvement in all lines Of busi- ness in this country, which has already begun to be shown. It means construc- tive developnfent along lines which have not been able to be followed since 1914.
 Facing this as,w unquestionably do face 1t, the question is how much cot- ton will the world need. Certainly they 1 can consume twelve and onezatarter million bales without difficulty and at prices far higher than would be the case were we faced with a large car- ry-over, which would also haveato be disposed of.-vHubbard Bros. 6 Co.
 NEW ORLEANS, Aug. s.--Today's government report had a depressing effect on the market, the indicated yield as or August 1 being 12,351, 900 bales ys. 11,93400o bales as of July IS. Including linters, present prospects for this years yield Is about 13,000 GOO bales, whereas the worlds consumption of American cotton last season was only 11.24l,000 bales. including ltntefs. Liverpool cabled that English spin ners decided to continue short-tirAe ur- til end of the year instead of to Sep tember 1, probably due to scarcity of cotton abroad and lateness Of the American crop, which is denoted by the small ginnings to August 1-21 SPA bales vs. 64, 1901 bales ginned to same date last year. -..as 'sEst
 The only sustaining feature of the situation at present Is the continuance of the drought over the greater DOT | tion of Texas and Louisiana, and if i rains visit Texa@Sin the near Future the crop outlook would likely become more promising. Meanwhile,Eaf the dry weather continues in Texas, the market may be suAtained; but, if the needed rains matertalize, a lower level of values Is probable-fI. and B. Beer to J. F. Willingham & Co.
 NEW YORK, Aug. s.-The feature of the forenoon trading was evening -ur for the report. The production fisuts was larger than the average of the private estimates, so prices broke 70 points, but October rallied again to over 2Sc. Renewed liquidation aIi5 pre- fessional selling in the late rad!ng carried prices lower than tbs poon break and a very bearish se-itna&nt de- veloped around the room. Crop Ideas In many quarters are in reasing. ddo to excellent reports iron all sectjous except the parts of Texa needing rain. Many think that the final count will be IS million bales or tver and ma pority sentiment apparently Is that prices are destined 70 work considerably lloWer.--Jonn Y. CiArK 6 Co. te
 NEW ORLEANS, Aug s.--The first impression or the BayernneDt'e report based on it's condition estimate of 67.4 was that 1t wac bullith. and values climbed 75 points as soon AZ this was announced. Prediction of a crop of l2, 1851 ,000 bales, or 417,00e larger than its last estimate, proved too much for even the most ardent bulls, and liquida- ton set in, accompanied by a good deal of selling, shortly after these figures were made public. Values innmediAtely began to drop and sold off 145 points from the early high in a few minutes. The market had a good=slzed rally as soon as the liquidation let up, but the selling for both sides inereased later on the rumor that the uptown crowd In New York and western interests were liquidating.
 The governments condition estimate is really bullish in that 1t shows more than the 10-year average loss in condi- ton and crop has probably lost some- thing more since August 1. It's in- creased estimate is due more to it's Increase in the par, or formula for as- eertaining the yield from 2142pounds.- Fenner & Beane to Kahn 6 Virgin. TESTERS WEEKLY, COTTON STATEMENT
 Comparisons are to actual dates. not to elose Of