To return to the subject of the high prices ruling. It may be said that the climax of the bull mov. reached when the Tungchow d ted by two further factors, tioned, attempted to corner the market for September and October. Japanese speculators aided in this effort, and the other factor was that the growers in the interior were in an exceptionally hey were well fin-sold their cotton during t nis few yours at a very remunera: ere rein part w hing but top Th ives in position the Tungchow di good many other cotton merchants instead of selling spot cotton, bough forward on the Exchange until about the middle of December at every decline. It was 2 bold attempt to keep the market firm, but, as we have mentioned, failed, To what extent it failed and how those interested in the movement have become involved in losses may be gauged from the following highest and lowest quotations for standard cotton recorded on the Exchange during the yeari—Highest—Tls. 44.55 (July delivery)
touched on 12/3/25.
Lowest—Tls. 31.05 (December delivery) touched on 26/12/25.
The following table indicates the price fluctuations for the different grades of ese cotton during the year under Grade, Shensi Cotton. 'Tungchow Cotton'... Ningpo Cotton Taichonge Cotton Shanghai Cotton Hankow "Cotton Kiukiang Cotton Highest. vee Ts. 44.75 4476 4150 4475, 44025
4190
38.60
Tls. 14.25 per pie 1035
1050, 1035, '830 part of the season the Japanese mills were heavy purchasers of Chinese cotton, and as the market was also supported by the Tungchow bull group the price was maintained, In the meantime, however, spinners saw that their requirements could to some extent, if not very largely, be met purchases of Bombay cotton, and this they proceeded to buy on a liberal basis. The consequence was that Chinese dealers found a position forming at the end of 1926 and for the beginning of 1926 when the Indian staple would be arriving in large quantities. The result was that after maintaining its exceptional level for so long, Chinese cotton dropped about Tls. 7 very few weeks. It is believed that mills in Japan, who had bought during the summer, found themselves at the end of the year fully stocked with high-priced cotton, while the Tungchow group of bulls were faced with an equally bad situation, in view of the drop which oceurre+ in the wake of the announeement of the big American harvest.
The position of the mills in Japan in relation to those in Shanghai need not receive too much prominence when From certain of the movements already alluded to, it will be seen bow very great importance attaches to the import and export trade in cotton here. While Shanghai exports raw cotton to Japan prineipally—although there is with other con American staple and generally a quantity of Indian. A good depends upon the comparative prices of these different varieties, but in the past the adulteration which has become such an evil where Chinese has driven the mills foreign tained throug!
1925 led to heavy buying and as we seen the considerable arrivals of cotton attendant upon purchases assisted in bringing to an end the bull movement.
During the year the local mills, British, Chinese and Japanese, consumed approximately 1,450,000 piculs of Chinese cotton, Their further require-finned on Page 12)
Text read from the printed page and cleaned; old type leaves the occasional error.