In sympathy with the decline Ame can cotton following the port of the Bureau, Chinese cotton pes -down about Tls. 2 on the week.
Full reports are still awaited a3 regards the Chinese. cotton crop, and it is pointed out that where floods have not irretrievably damaged thescrop the favourable weather the: past few days should prove grest assistance. In the flood areas it is already fairly certain that nothing can te rescued.
Tu the meantime: local mills are reported to have "made heavy, purchases of low grade American staple, So far as yarn Is concerned the week has not been bright, and in. the absence of demand prices have declined. The outlook at the moment is not specially good, as it fig recognised that the purchasing power of the interior will be serious. ly curtailed by the floods.
In their weekly market report Messrs. J. Spunt & Ca, state:—Chinese Cotton: The cotton mai ket during the past week has been in a very depressed state and the Joutstanding feature was the rapid decline bringing prices down by Tls. 2 per picul lower than last recorded. Such a situation may be to have evolved entirely through ludden drastic descent in the American market following on the publication of the first Bureau Report, indicating a jerop of 15,584,000 bales and which fan expected. bearish report may be recorded as being the greatest surprise in the history of the cotton jworid. Great excitement prevailed jin the cotton markets all over the world and naturally affected the Hocal market to a great extent, The Now grades of American cotton are being offered at very attractive rates and a fairly large quantity Hhas been absorbed by the local mills hile the demand for the domestic staple remains at a standstill, The deal weather now being experienced proving to be very beneficial to the major portion of the Chinese cotton belt but it is very much to be regretted that in several tricts along the Yangtsze valley the reports to hand indicate serious and firretrievable damage done by the foods. The general sentiment con-Jtinues bearish though the market has reacted somewhat at the clo jand such reaction may be described jas only being the effect of the an-Inouncement of the scheme suggest-jed by the Federal Farm Board to Gestroy one-third of the American cotton crop. However before such scheme can be Fealised it will be Recessary to secure the acceptance Jof it by ten cotton producing states jand in the mean time it would be tweil for the Farm Relief to mani est its unselfishness by sacrificing its holdings and thus Jead the way for the cotton growing states to follow suit.
Yarn:—Our market is generally leak in sympathy with the declines the raw material and the limited demand. "Prices have declined some three to four Taels for spot deliver-fes and from five to six Taels decline been registered for forward leon tracts.
Text read from the printed page and cleaned; old type leaves the occasional error.