Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1907-01-10
AS To COTTON.
The Southern Farmer and the New
York Cotton Exchange
Don't Track.

Southern cotton men. both producers
and middlemen, should attend the COM
ing CONVEX. on of the Southern Cotton
association. # fot no other reason than
to give expression to their condemna-
ton of the New York Cotton Exchange
The concern cannot, perhaps, be abo1-
ished, but it can be rendered notorious,
and even odious, and in the association
is the right place to voice fsouthern
senti ment and feeling.
The cotton rendered on contract in
New York is often so rotteni that few
will take it, and the result is that they
proceed to protect themselves by SELL
ing an equal quantity of cotton, and in
that way New York becomes as a rule
bear market. Its trend is towards the
spinners, and away from the producers
of the staple. In order that this i'm
portant matter may be plainly UNDER
stood we give here the explanation of
the New Orleans Times-Democrat. 1t
says:
Contracts for the future delivery of
cotton are made on the basis Of Middl-
ing, but any grade or half-g grade, from
fair to good ordinary, both inclusive,
may be rendered, with allowances on
or off for qualities better Or worse than
the basis. It goes without saying that
the correctness of the plus or minus
allowances is of supreme import to the
integrity of the contract, In New
Orleans, the differences are those actual
| ly prevailing on the sixthsday before
| delivery is due and these differences
are determined by the values current
in the ''spot' market. In New York,
on the other hand, the differences are
| fixed at the outset of the season, once.
for all and before the character of the
crop can be crzsteB J. known. Man.
ifestly, the New York plan exposes
the buyer of contracts to serious loss,
good grades or low grandes for more
than they are worth, relatively to the
basis. The seller is safe, being free to
deliver the grades that suit his book.
At the present time, for example, the
receiver must take good ordinary with
whereas the actual difference is almost
two cents. This is a trap for the un-
wary outsider and even the wary insider
sometimes gets caught. Per contra,
the New Orleans system is fair to both
parties and the speculator must make
his money by foreseeing the drift of
events.
The southern people have patiently
stood the New York device for rigging
the cotton market with view to de-
press arbitrarily the price of the staple.
Statistics, for example, show that on
Decem Der 20 December contracts in New
York were 137 points below middHng
spot prices. That sort of trickery has,
it is estimated, cheated the south out
of millions already this season.
If the postoffice authorities and the
law authorities will not stop the fraud
ulent practices OF the New York Cotton
Exchange, let the Southern Cotton
association at its coming meeting pre-
sent the facts clearly and succinctly,
and then let an expression Of opinion
thereon be put on record and distrib-
uted for and wide. The subject is one
that calls for action, if action be pos
sible.-if not, then for an expression
that will take the hide off the rasca1s
who have devised and who keep afloat
fraudulent quotations of cotton.