The accompanying chart, formed on the same plan as the diagram illustrating the movements of stocks in Moody’s Magazine for May, develops some interesting features in the movements of Cotton for the last ten years. [6] Reprinted from MOODY’S MAGAZINE of June, 1906. For the benefit of those readers who did not follow the stock chart, it may be said that each circle represents the fluctuations for a single year. The bottom rim of the circle rests on the lowest price during the period, and the top rim on the highest price. The average price is, of course, established at the axis. The chart illustrates speculative extremes in cotton, the figures on which it is based are not the prices of Spot cotton, but extreme high or low prices for all options. The result, however, would have been only slightly changed had Spot cotton prices been employed. The diagram is based on fluctuations of 25 points, or ¼ cent per pound; the prices shown, therefore, are not exact, but they serve to illustrate comparative movements with sufficient accuracy. The high and low figures are not those of a calendar year, but of a fiscal, or crop year, ending August 31 of the years named; thus the prices for 1896 represent the fluctuations of the season 1896-1897. As production is necessarily a vital factor in making prices, this method was adopted to prevent confusion in examining the price effects of lean or abundant production. The range of prices for the period considered (1896 to 1906 inclusive), was as follows: Season High Average Low Fluctuation 1896-97 8.50 7.59 6.69 1.81 1897-98 7.50 6.50 5.62 1.88 1898-99 6.73 5.84 4.96 1.77 1899-00 10.00 8.38 6.76 3.24 1900-01 10.60 8.80 7.01 3.59 1901-02 9.67 8.51 7.35 2.32 1902-03 13.75 10.81 7.87 5.88 1903-04 17.46 13.23 9.01 8.45 1904-05 11.15 8.77 6.39 4.76 1905-06 12.54 10.93 9.32 3.22 1906-07 11.30 9.95 8.60 2.70 In the first three years considered we find low prices, and naturally restricted speculation. The speculative price range for the entire three year period is only a shade more than 3½ cents per pound. This was occasioned by two things; first, the general depression following the panic of 1893, and second, over-production. An examination of the prices of staples shows that unusually low figures prevailed in 1898 and 1899. Corn, for example, averaged 27 cents in 1897, and 31½ cents in 1898. Wheat shows high average prices, but the showing is a result of fictitious speculative figures established by the Leiter deal, and cannot be considered a fair criterion. It may be added, however, that wheat sold as low as 64 cents in 1897, and 62 cents in 1898. The question of over-production will be made apparent by reference to the following table: