The Birmingham age-herald., 1924-08-02
COTTON LETTERS

NEW YORK, Aug. 1.-First prices in cotton were higher on cables and over night buying, following the rapid rise yesterday: but the advance met heavy profit-taking, causing a reaction to un- der 29c for October.
 A further break occurred on the pub lfcation of Hester's report showing a catry-over of 2,319,000 bales, which was about 100000 bales more than expected, and 6 consumption of only 11.2. Coin cident with this, New Orleans house issued a report giving condition at 69.3 and indicated crop at 12,700,000 bales. A storm warning was issued for west ern Caribbean sea, which some thought might mean rain for Texas.
 The weather details for that state. showed no rain, but fewer points had excessive temperatures. The general situation in cotton, except for Texas, would seem to warrant lower prices. Traders this afternoon were adding the Mayer estimate of 12,700000 bales to the carry-over, making a total of 15,- COG, ,OOe bales, and the disposition was to sell.-John. F. Clark & Co.
 NEW ORLEANS, Aug. 1.-Cotton prices opened up more than $2 a bale Friday on good showing by Liver pool and no relieving showers reported in the west. ' The early weather reports failed to indicate any rains in the west, and the weather map showed no precipitation west of the Mississippi river and only scattered showers in the northern DOT tion of the central and eastern belts.
 There Is the usual low pressure over the Mexican border and another over the Rockies, but the trade has only little faith in these barometer promises of rain after having been fooled so often recently.
 A report from the Rio Grande valley this morning said that Il plants in that section had ginned only 45,000 bales, against 10000 to this date last year; and the entire output of the valley is estimated at 12,50O bales, against 30,0O0 last year.
 Dry goods reports. are only mildly bulIish and exchanges were steady Levy & Aronson to s, R. Stewart.
 NEW ORLEANS, Aug. 1.-cotton opened 60 points up on. failure of rains to materialize in the drought-stricken parts of the west overnight and eXpec- tation of small carry-over figures from, Mir Hester. It sold off 160 points lower as a result of liquidation and selling brought on largely by Mir. Hester's fig ures on, consumption and carry-oVer and possibility that sTexas may get relief from drought soon on account of a dis turbance in the Caribbean sea. MT. Hester's consumption figures were &C., cepted as indicating that the world can get along on less cotton than thought possible and has induced many traders to revise their ideas downward as to what the world actually needs in the way of supplies. Possibility of re- lief for Texas in the next few days, coupled with disappointing consumption and larger carry-over than expected are likely to overshadow the market for a time and Induce enough liquidation in advance of the bureau to cause sagging market.-Fenner & Beane to Kahn & Virgin.
 NEW ORLEANS, Aug. 1.-The mar ket was higher this morning, owing to continuance of drought in Texas; but the advance was followed by a sharp decline, due to bearish construction placed on Secretary Hester's cOnsump- ton and carry-ovee figures, and be- cause of larger crop ideas, the drought in Texas notwithstanding.
 The commercial crop of last season was larger than generally expected, the worlds consumption smaller than expected and the worlds carry-oVer larger than generally expected.
 In event the government report, due on August 8, indicating production of l2,OO0, 900 bales, exclusive of linters, which would mean about 12,750,000 bales, including linters, and as the world com sumed only. 11,242,000 bales last sea son, including linters, the trade is be- ginning to realize that present prices may be too high, especially for this time of year.
 Compared with last season, the worlds visible supply of American cotton today is 924, 4,0OO bales, vs. 794000 bales; of other kinds, 1,263,000 bales vs. 1,152,000 bales, and of all kinds, 2,1ss,OOO bales vs. 1,946, ,00O bales.-H. and B. Beer to J. F. Willingham & Go.
 NEW YORK, Aug. 1.-After hesitat- ing on the opening this morning, the market broke sharply on the reselling of cotton bought yesterday due to a notice being posted by the weather bu-