The Birmingham age-herald., 1907-04-17
WOULD BRING MANY MILLIONS ID CITY Armstrong; Talks ofCotton War;
 rant Exchange NO DEALING IN FUTURES Plan Is Approved By Foreign spinners and It Bids Fair to Make Br-
 mingham Great Finan-
 ciaf Center.
NO DEALING IN FUTURES

b. 1lAOH AIIlSlIOHSs lOluitlly duulAOl of the Southern Cotton association, who has recently made Birmingham his home, yesterday discussed the plan to establish a so.called cotton exchange in Birming- ham. to deal in warehouse warrants and not in futures. He makes the point that the place might be better called the cot ton warrant exchange for the purpose of getting away entirely from the old ideas of place where futures could be bought and sold without the actual sale of spot cotton
 MT. Armstrong said:
 "The movement which has for it's pur pose reform in the method of handling cotton is one of the most important ques- tions that Birmingham has ever been called upon to consider When we recall that the entire world looks to the south for three-f fourths of its clothing, we can in a measure appreciate the enormous wealth that this staple represents
 To Get Closer Together
 50 important and imperative is a change regarded that last year the In ternational Congress of Spinners, and this means the continental spinners, not alone England, named a full committee and sent them on this side to meet and dis euss with like representatives on the part of the producer this proposition of a more direct dealing between the pro- ducer and manufacturer.
 This movement would make Birming- ham the financial center of the south, representing in the matter of exports -AAa aAn QRA tf..al 1.r un per day for a year of 365 days, which we receive in exchange for our product from foreign countries. leaving still to be woven into cloth in our own mills over $500 00O, 000
 Birmingham would. as a logical con- sequence of this movement be headquar- ters for the consummation of this ex- change of wealth. which is greater tha- the combined capitalization of all the national banks of the United States doubled. It would be the financial cen ter of the south. and by reason of the enormous strides made by our own people in producing the finished product and selling that to the world. it is possible that Birmingham might be made the financial center of the world.
 Approved By Foreign Spinners.
 '.The enormous increase in capital on the part of the banks necessary for handling only a portion of this crop, would be beyond the bounds of imagina- tion. It would naturally bring cotton mills to or near Birmingham the cen ter of the handling and storage of the cotton. The matter of warehouse facl- ites alone would be something enormous. This movement is already approved by the foreign spinner. The present system of having to depend upon the integrity of those from whom he has to purchase and the delay fin the reclamations when cotton does not measure up to the repre- sentations made by those who sell to others on the other, side are very ob- jectionable, whereas, under this plan the spinner has only to turn to a list of receipts to be issued by this warehouse | company, showing on its face and car rying with 1t the guarantee of strong financial interests the grade. condition of the cotton. where stored. the amount of insurance carried against 1t, distance from seaport. number of hours consumed by rail to this point and everything set forth there which would enable him to as fully understand in Liverpool what he was purchasing from Birmingham as though he were here on the spot, in- specting that cotton. This has all been worked out by men of recognized ability and Birmingham has had no small share in the solution of these problems as the few names mentioned as conferring with MT. Jordan the other day are those who have from the beginning of this movement given that question q great deal of thought and have now a propo- sition which is simple. sound in moral and in business, and advances the in- terest of the producer in a single bound fully 20 per cent on the present value of his cotton.
 Cotton Warrant Exchange.
 "I would like to make a suggestion in contra distinction to the Idea of a cot ton exchange. I would suggest in lieu of calling 1t a cotton exchange that 1t be called the Cotton Warrant exchange. and that Is what 1t is in fact, as there will be no future marginal sales permit ted but 1t would be in fact the purchase of warrants which call for cotton In the warehouse in Birmingham or any other point to be delivered at some future date, always carrying with 1t the entire spot transaction.
 Another thing for Birmingham and for the American fire insurance people. This chain of warehouses would enable the American to carry the insurance and re- ceive the storage charge. whereas today the moment sale is consummated in any interior point by representatives of foreign cotton firms, automatically the of cotton and the premiums are paid to those companies on the other side and this amounts to millions each season. This should be looked after also by the local fnanciers."