The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-30
9inanriaI.


The exceptionally low price at which cotton 1. sc,l
ing, the lowest price with but one exception recorded
aimee the war. has attracted much attention to tn.
question Of whether or not the article is cheap and ,
sound Investment at present prices
There are many who believe that It IL b.iou III.
cost of production, and that this fact, together with
the gold imitation. and the ease Of money which has
resulted in recent advances in securities and in wheat.
will ultimately have the effect OF sharply advancln,
cotton. This result. IL ia believed, will DO achieved
in consequence OF the probable reduction of acreage
and restriction OF production which 10 almost certain
to follow this years excessive yield.
II such diminution OF the production 10 erect,d
either by q voluntary reduction of acreage %
through o curtailment OF next years crop from lin.
propitious natural conditions, the stimulus to con.
sumption that has followed and always follows low
prices for any given article is sure to nnd expression
in very much higher prices next year.
In this connection It is worthy OF remark that in no
calendar year since the war has cotton in New York
failed to sell at SC. per pound. although in one suoh
calendar year It sold At bnsc. Der pound.
The chances of prone for the patient buyer ara
therefore obvious. There are two ways In which
bucn IN investment may Do mnue. Inc nrst 10 BY an
outright purchase of the article or contracts for liz
future delivery. The second is q comparatively new
method in this country. and involves the purchase OF
an OPTION or PRIVILEGE to "CALL" for the deliv.
cry Of cotton within q specified time at present
prices. for which PRIVILEGE q cash premium IL
paid.
Hitherto It has not been practicable to trade in such
I'LL O., A -. q. .&.N .tsA1.-h 4.
stantly done in securities and grain. Believing. how.
ever. that the time is now ripe for tho initiation q
such business. we have arranged with our Liverpool,
correspondents to purchase from them OPTIONS on
cotton in Liverpool. the largest cotton market in the
world, and moro closely the barometer of demand
than any other.
subject to sale. therefore. we are now prepared to
Offer CALLS" on American cotton for August
and or September delivery In Liverpool at the
current quoted price there for such contracts at one
O'Clock on any day, for q cash premium OF oloo PEP
100 bales. The buyers of said options will have the
right to call for the cotton ut the now current mar.
ket price as stated, up TO the close OF business on the
25th day of July. 1898.
In other words. for o cash premium Of $3.50 Dor
100 bales. or. say about $4,000. per pound. tho
buyer of these PRIVILEGES will bo able to put him.
self at any time in possession Of cotton. on the basis
of present prices for August and or September
delivery in Liverpool, which 10 about 9-14.04 pence
per pound. or the equivalent of about the present
price in New York. say 1880.
Az the New York and Liverpool markets nuo-
tuate in close unison. 1t will BIO practicable to trade
here against such PRIVILEGES during the time OF
their tendency. and It seems to us that It 70 one Of
the safest ways yet devised for believers in cotton to
secure for themselves with the smallest possible rish
the largest possibility OF profit.
Tho PRIVILEGES will bs made BY one Of the
strongest concerns in Liverpool. mutt. millionaire,
and long established as very prominent members Of
the Liverpool Cotton Association. The PRIVILEGES
will be delivered within 10 days after their purchase
from us. and we shall BIO very glad to execute orders
against them. either in New York. New Orleans. or
Liverpool markets. upon the usual terms.
Correspondence upon the above subject. or any
other connected with our business, is solicited. and
will receive careful attention.
PRICE, MCCORMICK & CO.,
40 BROADWAY. NEW YORK.