The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1889-07-11


This is matter in which the farmers
are deeply interested, and one not gen.
orally understood. Foreign prices, as a
rule, regulate domestic markets. In fixing
these prices the foreign consumer deducts
therefrom whatever it costs him to lay
down the cotton at his mill; the weight
of the bagging and ties and the loss from
damaged cotton. This custom is fully ex-
planned in the following extract from
q letter from Latham, Alexander &
Co., of New York, one of the largest
cotton houses in the world, written to the
Department of Agriculture:
when buyer or shipper gets an
order from Liverpool for say 100 bales
cotton, average middling, say at 81 pence
per pound, he knows very we'll before
buying the cotton, in say Columbia, S. G.,
that he must make allowance for ship.
ping expenses in Columbia, freight to
Liverpool, the current rate OF exchange,
6 per cent. loss in weight in Liverpool,
say 4 per cent. marine insurance, say II
per cent. bank discount on his 80 day
sigh bills, say + per cent. brokerage,
landing charges, sown dues, &c. In
Liverpool, his own com mission, &c. To
allow for all the items of unavoidable
expense, or to recoup himself for them
he simply bids that much less than
81 pence for the cotton to the merchant
or planter in Columbia. If he cannot
buy the cotton at a price that will per.
NIT of his delivering it in Liverpool at
ST pence after allowing for all these
expenses, why he simply cannot Gil his
order, that is all. Then he must either
wait until the market comes down, or
he must get the limit raised above 63
pence, or he looks out for the same new
order. The writer of this has formerly
bought thousands of bales On Liverpool
orders, and the foregoing is the manner
in which he had to allow for the per
cent. loss in weight in Liverpool and
for the other expenses. Sometimes, of
course, orders are simpler. The 6 per
cent. loss in weight includes the tare
: 1.-THE actual weight ofthe bagging and the
hoops.) Italso includes loss incurred
through picking dirty cotton off the
outside of the bales, &c. 1t Is per cent.)
is supposed to be enough to cover all
these means of loss, and is accepted as
enough by the party in Liverpool who
sends the order to his correspondent in
Columbia"
Mr.. Albert @. Stephens, editor of
Bradstreet's, one of the leading trade
journals of the country, in 8 letter to
the Department of Agriculture, explains
the matter still further. He says:
"Che cotton trade customs here and
abroad differ in the methods of fixing
tare allowances. In this country cotton
is sold on its gross weight. In Liverpool
it is sold on its net weight, consequently
there is regular system of tare allow.
anee in the latter market, while there is
none recognized in this country. But
this fact is taken into account by the
cotton trade, and quotations are based
accordingly, so that there really exists
no difference in the ultimate result. The
rules Of the New York Cotton Exchange
specify that cotton bales shall be bound
with ties not to exceed six in number
and two pounds each in weight, making
total weight of ties not to exceed II
pounds per bale. In addition, it is stip.
lilated that no unnecessary bagging shall
be used. Any excess in either direction
must be allowed for, or the cotton may
be rejected. In Liverpool the following
allowances are deducted from the gross
weight in order to reach the net weight
basis:
l. Two pounds per bale for draft.
2. Actual weight of iron bands (ties)
ascertained by weighing the banda from
few bales and taking their average
weight for the loi.
8. Four pounds for each 112 pounds
for tare.
The allowance for draft is the survival
of an old custom which allowed a certain
amount ''for good measure"
The four pound stare" allowance above
mentioned is really an allowance for
bagging only.
In its broad, general meaning "tare"
means an allowance for bagging only.
Mr.. Berry Benson, of Augusta, Ga,
obtained from Potter & Co., one of the
largest exporting houses of that city, the
following information for the Department
of Agriculture:
The tare is fixed by the Boards of Trade
of the different ruling centres, where
cotton is bought. The European consul
mer buys cotton only, paying for net
weight, and not for bagging and ties.
In Liverpool, the tare is: 2 pounds per
bale for double draft, 4 to 6 pounds per
bale for ties, and pounds per hundred
weight ii. G., PIP ponnds.)
"In Havre, the actual weight of ties
is deducted, and 3 per cent. tare. In
Bremen, 6 per cent. covers the tare. In
Amsterdam, d per cent, and actual
weight of lies. In other words, the
foreign buyer pays for the actual weight
of the cotton. In American markets, mo
deduction is made for bagging and ties,
except when there is an excess of either
upon the bale. If cotton is wet, or with
caked mud or dirt upon the bales, the
weigher makes suitable deduction in
his Judgment.
The information furnished In the
foregoing letters proves clearly that the
foreign consumer pays for cotton only,
and that. when the difference between
the weight of jute and cotton covering is
adjusted in fixing the tare, the farmer
vii! lose nothing by the use of the lat