The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-10-19
THE COTTON EXCHANGE.

The COTTON EXCHANGE.
Amendment in Relation to Spot Cotton
Decentralization as 20 Rovisions.
From the New York Commercial Bulletin.
At the Cotton exchange, an amendment
TO the bylaws relating 10 the spot cotton
committee aud quotations was voted upon
yesterday aud was carried. The amend
ment provides that the quotation commit
tee for spot cotton shall consist OF seven
members Of the exchange more or loss
actually engaged in spot cotton business,
and shall meet at the exchange on each
business day at - o'clock noon, and at
O'Clock pm, except Saturdays, when they
shall meet ut ll.ij o'clock am, TO confer
upon, and 10y vote OF the majority Of
the members present establish the market
quotations iur the time being Of middling
upland cotton. The relative differences
in valuation between the grades shall be
determined by the revision committee.
The quotations published in the daily
circular shall he for the following grade,
viz At - M. middling upland. At .
pm. the following grad. X aud fractional
grades, mp aud Gull cotton, viz, ordinary,
strict good ordinary, low midilinE, strict
low middiing mlddiing fair aud mir. aud
OF stained cotton, good ordinary, strict
good ordinary, low middlng aud mid
ding
While this amendment Is conceded 10
cover the matter Of spot quotations MS far
~ they 20, there is quito a pronounced |
sentiment among many members 10 the |
effect that the revision committee should |
meet Oltcner than once q month. Under
the present condition ol aildin it Is alleged
thai the quotations ~ presented officially |
in the circular ol the exchange are often
far out II the way. The prices OF spot
cotton are all based on the price Of mid.
ding cotton, aud as the price Of this
grude vNric-, AN other grades are advanced
ot lowered accordingly.
leading member Of the trade. in |
speaking OF the subject, showed what hc |
considered the folly ut the present system |
OF quoting the spot market, aud sud: at
Tia blst meeting Of the committee on ~
vision thc quotations tor grades above mid.
dlings were unchanged strict low mid
ding was reduced l-lGc, low middiings |
reduced l.lGc, strict good ordinary re-
duccd 3-lGc; good ordinary reduced 3 tic,
strict ordinary reduced j.l6c; ordinary re. |
duccd 5-lGc. Stained Cotton Middling |
was reduced .c low middling slice; strict |
good ordinary, b-lGc, low ordinary, b-lBc.
There are, ! think, none Who will claim
that the foregoing changes were made Ia
day. No, the changes were thuse Of a
month, and consequently the official quota
uons furnished 10y the exchange n lay or
30 before the revision were completely
wrong, and differed very materially from
the actual selling prices, ~ the revised
prices showed. All grades Of spot cotton
ART governed 10y the law Of supply and de-
mnnd, aud there may h. good demand
for the fine qualities and very poor lie.
mand otherwise and yet, according Ia the
prevailing system, the low grades continue
10 bc officially quoted ut the same relative
value with middlinr for a whole month.
To my mind this Is nonsense. II quota.
tons are made at all they should represent
the actual market price Of the article they
name"
WINS ~ TnE OPPOSITION.
On the other hand there are many Nom.
bcn who regard the present method of
quoting the spot market no the most ptnc-
teal way OF aiiurling the members a
means Of satisfactorily conducting their
business that can be- furnished A promi.
ncnt member, identified with the spot
uaac, grew very enthusiastic when asked
oi hH side OF the question yesterday.
we have had great deal Of troubI, In
uihrs past iu rgaid On the pstalli.hm,nt
"a l"li basis iuf settling spot trades. and
loi myself am perfectly satisfied with tho
present system. Revising the quntatiou.
once month PLACES II out al the p,W.r nj
the members 1T the revision on any oihcr
committee 10 manipulate tie market in
Their own Interests ! do not say thai
There IL any member ol the present conn
miilcc who would do such thing. but il
h noiofious that Il has been dono lin,
and time again before the present
system was established. Say. Ior Nm.
stance, that there was inst :
quorum OF the revision committee
present at any meeting, and that one al
the committeeman hal contracts Of "A Ger.
tain grade Oi cotton tu deliver. do ynu n,,,
suppose he would cndrayort o a,lyan,c ths
price Of that grader While, on Tie oti,c,
hand. II lac had 10 receive a certain pra1s
OF cotton, would be not naturally ON.
deavor 10 get his co,,on A. rhcap as possi.
blel You must understand that the mon
on the committee are engaged in the cot.
ton business; aud while ! have great f,i,l
In tho present committee, | believe In
looking out for the trade interests m
future. Another point la the matter !,
that the 'kicken' don't present any plan
II they will propose something better thar
the present system, why will vote for h
but until they DO ! think the less sai,
about the matter the better"