The New Orleans daily Democrat., 1877-11-01
THE COTTON TRADE.
Il aluHLy sMroRrANr LETrER FROM
LIVERPOOL.
aepcrt OF the international cotton Com
venti0n.

venti0n.
II DALE HTREBr. I
Liverpool, October y. 1877
John Phelps. ESD. President Of the National
Cotton Exchange OF New Orleans, America:
Si,4t have the honor to report. for the infor-
tion a'of 81 tie cotton Brokers' Assosiaton con
ferenaa of the various bodies connected with
tho cotton trade in this town aud the Cotton
splhners' Association has been held for the
purpose Of considering the, recommendations
The conference appointed eommittee. con-
siHting Of the presidents and vice presidents OF
he Aamsrean Shaber of s tine
Brokers' Association, to consider and report
upon the following resolutions OF the conven-
THAT II is desirable some mode Of inspec5a
ton or supervision should be established Of
cotton on ariya at . LvsrRoe fns mpos
De appointed to further ,his proposal q and It., to
weishins Of cotton on the wharves and other
kindred subieets'
.'That the different exchanges represented In
this convention be requested 70 obtain M legalaat I
tion In their respective countries SO far as 1t
does not already exist to hold mastsrss 2, 2, yes
natures on the bills Of lading. aecompanied by
the Inspectors certificate Of condition,
that cotton be sold at net cash price, without the
present deduction of Ia per cent, was post
nIssa nHI1sa u eY BUYERS o cotton Who demanded the
siiseoi,pt az an old usage and stated that its
abolition would be considered grievance par.
tlcularly in the present bad state ot trade In
The recommendation that when cotton Is sold
on the spot payment shall be by cash. before
delivery If required was not confirmed by the
conference. 1t was represented hat the ptaeti-
cal working Of suen an option would be to IN
ld we"ld Gauss @ eoSsderabe Inconvenience @ to buy t'y
ers, and would neeessitate q large Increase in
Che working capital Of the trade, which 2, ts T. pres.
among trade buyers of cotton being very few.
compared with the magnitude of the business,
It was felt that 1t was not at present necessary to
Introduce such change In the terms OF pay
The committee of the Cotton Brokers' Assoei-
ation, which il considering tho system OF deal
ing In futures" not having. yet made Its re-
port the conference was unable to enter upon
th ne q ,t - t tbs an tb,t
contracts. for cotton bought end sold for ship,
ment or delivery should be for the delivery OF
100 bales OF 4s2QO pounds weight this weight t9
by the conference. and the committee of the
Cotton Brokers, Association was reaue sted to
give effect to 1t this season.
The arguments in favor, OF an alteration In
the existing rule were briefly as follows
1, That under 1t sellers could deliver bales ol
any weight. and frequently regulated their de.
liveries according as their contract was II pro
ftable or q losing one.
h, That buyers having no certainty what
weight Of cotton may be rendered to them, are
unable to arrange their finances
.. That in falling market buyers are almost
sure of receiving large excess in weight which
they can only resell nj u considerable sacrifice
The adoption of the recommendation OF the
convention was advocated. because.
fd1 1t defines tue contract between the buyer
aud seller, and limits the possible variation
from the quantity contracted for to half u bale
or % per cent
fb} II will facilitate the operations of the mer
chant, and enable the spinner to cover his sales
Of yarn. which are made IN pounds weight by
the purchase of the exact weight OF cotton re
uuired for that purpose.
lated.
The Cotton Brokers' Association have not We
given effect to this resolution but teel conf
dent that they will very shortly do SO. as it 40
pears to be the unanimous wish of importers
OF cotton, and 1t Ia obviously to the advantage
Of the trade. that the proposed change shoult
be carried out
The Cotton Brokers Association have adopted
the recommendation Of the convention. that The
, official quotation of Low Middling and Coco
a Ordinary be given daily.
! have received communication from The
President of the National Cotton Exchange Q
America. stating that the recommendations o
the convention in reference to country damage
and the inspection of cotton before shipment
have been duly forwarded to the various con
stituent exchanges.
am, yours faithfully. ---.-...-.-
WIN b. FORWOOD,
President of the late International Cotton Con
vention.