The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-07-17
coTTNo STORAGE PROBLEM
Inc New York Trade is Becoming
wore and More Interested i'm the
question of Authorizing Southern De-
h'eries on New York Contracts.
Ease or Wheat Deliveries ut Buffalo
cited Against the Measure.
New York Journal of Commerce

Ne" York Journal of Commerce.
The committee r~epresentinr fire
Underwriters, warehouse interests
ana members Of the New York Cot
o Exchange storage problem at
New York are making ami
there seems good prospect OF an
early settlement. The committees
representing the warehouse Interests
nave prepared a statement showing
the actual condition in the warehouse
and the underwriters have suggested
changes IN those conditions which
II adopted, will bring rates down 10
a fairly normal basis. 1t is now that
n work OF the New York Cotton
Exchange committee will be needed.
The committee will DO It's utmosr TO
induce The warehousemen to ad1p,
the suggestion Of the underwriters.
Meanwhile, however. the trades
are showing constantly increasing in
terest i'll the proposition 10 provide
for cotton deliveries at Southern
centres on New York contracts. This
does not mean hat any unanimous
sentiment has been secured in favor
OF the propositions; but il does mean
that important firms who heretOtOr,
have refused TO discuss the matter
at all are now at least willing to lis
ten to the arguments in favor OF the
proposition. One Of the strong argu-
bents being used by the opponents
of the plan is the fact that the New
York grain trade unSucessfully triel
IA similar move in relation 70 wheat
deliveries. This plan contemplated
the acceptance on New York con-
tracts Of wheat stored at Buffalo at z
price less than the railroad frei9hl
charge between Buffalo and New
York plus a small penalty. The OBJ
jet Of this plan was the same as
THAT now spoken, it was desired
to have at the back Of the New York
contracts u sufficient quantity o.
wheat so that it would be virtually
impossible 10 corner the artlcl"
With such Il guarantee that supply
and demand would be ruling features
Of h wheat market, it was fig1lre3
that speculation increased. But that
result was not achieved, and a few
months ago the ruleS of the Produce
Exchange permitting Buffalo deliver
les were annulled.
On the other hand, the arguments
in favor of the proposition have from
time to time been forcibly presented
by the committee, of which James
F. Muarey is chairman. The COM
mittee'S work extends back several
years. Two years age a circular let
ter was SEM to all members of the
exchange requesting expression ef
opinion regarding the general prop
osition. Only seventy responses were
sen in, however, fifty II being in
favor of the proposition and nineteen
opposed. Of these nineteen, ten gave
no reason, one thought it would de-
stroy the New York spot business;
four thought it would help the bears
and one asserted it was the ~illiberality
of the New York banks that was re-
sponsible for the small stocks at New
York
The committee, in their latest re-
port, grant that the adoption of the
plan would diminish the storing of
cotton in New York; but that, they
argue, has been diminishing for
wears. because New York is no longer
a natural market to which it pays
to send cotton to be offered to mills
or to exporters. But" they con-
tinue, las there are cotton merchants
here. the money is here, and the ex-
change is here. if we have cotton
stored safely in secured warehouses
at shipping points, all ready to De
sent anywhere, and we have the sam
pies of the c~ertificated cotton to sho"
to buyers. and they feel that they
- 49,, nn1 1nov0 ~ IN
the warehouse in the South with per-
feet safety, both as to grade ana
olantity. till they want to spin, 10
ship or to resell it; II this can De
done. it is difficult to understand Why
New York will not get back her far
share of the spot business, and a
much larger one than she has no".
There is no getting away from this
fact: that practically the only reason
WHY cotton is brought to New YORK
is 10 deliver on contract, either aE q
security for the seller or because it
is 2 style and grade for which there
is no demand in the South. and tC
sell futures, ship and deliver IS me
only way TO get value. Thus New
York is O of Il dumping sround
than a buyed, an this very tact lis
TIE ouSeo wiz IooI'
good cotton from buying futures
and calling for the delivery. rms dis
the certiication of good
spinning cotton, because lnsteaa OF
adding to its value it detracts from
II nv cer1iicated cotton being as
in his mind with unstable
1T is OILY a limited number or
which send TO New York 20
huv because they must have the cot
Immediately, and a few export
ers buy to fill belated Liverpool con-
tracts. All kinds Of grades are now
mixed up on a certificate. AS cotton
is not c%ertificated TO make II o
readily salable but merely TO make II
deliverable on contract, e~ven-runnins
of nice cotton do not get the
Of this admirable system or