The local cotton yarn exchange] was closed from December 27 until January 5. The market for yarn opened considerably stronger, but subsequently declined on political rumours, although it has since recovered, Cotton is very strong, having advanced about Tie. 2 per picul since before the holidays. This has been. Jcaused partly by the severe drop in exchange which, of course, mak the imported staple considerably higher and also because of the report that there is a comparatively, quantity of tenderable cotton against much larger sales.
"The new excise tax has not yet actually come into force, and it is uncertain when this will be brought about.
In view of the holidays there has! been no great amount of butines in yarn, In their weekly cotton market report Messrs. J. Spunt & Ca. state:—China Cotton—Since the opening] of the market after the New Year holidays prices on the local Cotton Exchange moved on an ascending scale activated by bull speculators; who are encouraged.n their operations by taking advantage of the prevalent low silver rates and the Steadiness in the American and Indian markets as well as the very meagre receipts from the interior marts. And while the actual demand for the staple on the part of consumers is on a very small scale the continued growing strength in the market is impelling shorts to cover' their pos! thos bringing about a further inflation in the rates. For the time being therefore no recessions are visible unless arrivals increase in quantity.and of: silver appreciates considerably.
Yarn—The daniand for yarn for actual. consumption has been neg-eligible, but-prices, in sympathy with the appreciation of the raw material have advanced, and whatever, purchases have been made were dine in. anticipation of the flat tax which is. expected to come into effect at an jeany date. While the local stocks show a decrease the stocks in the other ports to which such have been {transported have commensurately increased and have not as yet been disposed of for actual consumption. It is for this reason that price. advances on yarn have not moved! commensurately with the rise in the values of raw cotton. The general] sentiment in the yarn trade at the moment is not as bullish as it is in the raw cotton circles but a revival in the trade is looked forward to after the Spring festival.
Text read from the printed page and cleaned; old type leaves the occasional error.