The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-11-24
THE NEW YORK COTTON EXCHANGE
How the Institution will BENEFIT the
Trade.

This institution, organized in New YORK,
has been only seven weeks in operation, and ha:
already produced highly beneficial results. AS
much as three hundred and fifty thousand bales
OF cotton has changed hands, and It has exercised
the most wholesome influence In giving stability
to prices The prejullces against such an iustl-
tuition are rapidly giving way. ltwas thought In
some way to be connected with monopoly. Ii
was conceived to give IN influence to capital con-
centrated at centre that attracts and enjoys
nearly all the financial resurces OF the country.
| These views are founded on msconceptlon. LIE,
us calmly examine their grounds:
l. New York. from geographical position, com.
| merclal causes and financial resources, is neces
sarily tho centre where the sales OF produce and
oil the most important negotiations for money
| takes place.
3. New York comprises the largest body Of per.
sons engaged In trade, who are acquainted with
its rules and are familiar with oil lis complexities.
AS Il consequence, 1t has ample materials for the
| formation Of the various boards or committees
essential TO the operations OF snch an institution.
8. New York, by It's connections and correspun
| dence with the most civilized portions Of The
| globe, Is the natural organ Of commercial intel
lgence for those parts OF the United States even
the most remote from the great centres OF com.
| merclal information In Europe.
But on abstrs CT considerations and 10 reference
to the interest Of the producer such an institution
will be found of unquestonable benefit to the cot
ton trade. As regards disputes between buyer
and seller, differences are easily adjusted when
there Is q common arbiter. There are many such
diiierences In market Tor staple so valuable as
cotton. A common standard as to quality Is In
dlspensabe. Accordingly the New YORK Cotton
Exchange has made low middllng tho standard.
This Ia the basis OF all contracts and disputes as
to grade receive ready solution. In selling
for future delivery the buyer dimlnishes his
chance OF loss by paying differences before the
maturity Of the Contract while the seller has the
opportunity OF realizing upon a falling market:
III this way there Is Preserved au equality 81
prices.
TIE objection to sales for future delivery, like
Similar sales for gold, lies In the field for specula
I lion as alleged to be extended, but there Is this
values while 1t ID lmpracticable to check specula-
ton in an article In such universal request as cot
ton The great benefit, however, OF sales In ad.
vance, is that they give steatllness to prices, and
prevent rulnous fuctuation. TINS results from
sales In an extensive market that gives tone TO
prices The laws OF trade ultimately regulate
Values but If the market is adjusted by the tnnu-
! ence of abundant capital, supply aud d"mand are
Iuation. Let us Illustrate this position: The
| receipts OF cotton at all the ports exceed
those OF last year at the same time SO ,oOo
| bales, with larger receipts Ut the inland
ceipts one month hence will be in excess 100 900
| bales. Now II this prospective excess could be
reduced by only $4,000 bales, ir will prevent that
pressure on the market which has o. times been
| so injurious to the interest o. planters. 1t will
distribute the supply over longer period OF time
and tend to equallze prices There Will be no &C.
cumulated surplus In market.
Let US. on the other hand, suppose deficiency.
The planters will be admonished to hurry their
crops to MARKET as In the other case to withhold
| them from market until 1t was relieved OF q
F, threatened excess. These considerations lead to
| the conclusion that II all our great agricultural
t.1t, t,rx,k n fnA nf fhd
same causes, It would diminish speculation In
| stead Of promote 1t.