New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1907-01-12
COTTON TALK.

New Orleans an. IL he
wide spread demand for reform
in the New York cotton con-
tract appears to be rapidly gath
ing cumulative force in the cot
ton growing states for the reason
the producer is becoming educat-
ed. The New York contract is
so framed that the speculative
"short" can depress values
through the tender of undesir-
able cotton above its worth in
the spot market. n ilIustrat-
ing the difference between the
New York and New Orleans
contracts and in pointing out
the ideal contract, the New Or
leans 1imes-Democrat says:
On the first Friday of this month,
as is the case every month, the
quotations on all New Orleans
spot grade were revised.
Sweeping the revision was-rang-
ing from reduction of 11-16c on
Low Ordinary, 3-16 on Ordinary
aud Good Ordinary, and 1-8c on
Low Middling, to an increase of
7-16c on the two highest grades,
leaving Middling and Good Mid
ding unehanged-the revision
committee acted merely in its cap
acity of supreme judge of the daily |
work of its subordinate body, the
committee on classification aud |
quotations. And the result Of its
efforts indicates clearly enough the
wisdom of the New Orleans Cotton
Exchange in providing an effective
method of checking up the spot
grade differences at frequent inter
walls in order that any errors that
may have crept into the current
work of standing committees may
be corrected.
New Orleans being a spot mar
ket, official quotations for all the
grades traded in are arrived at by
referring the entire question back
to the true source of genuine val
ues, the relation of demand to sup
ply. Any other course would be
manifestly unfair either to the
buyer or to the seller, and the
members of New Orleans Cotton /
Exchange acted upon this know.
ledge when they drafted the rules
under which their committees op-
crate.
These rules provide the COM
nittee on classification and quota
ions shall consist of five members
who are to be appointed monthly {
by the Board of Directors, and ,
whose duty it shall be to furnish
laily quotations of the different
grades of cotton as sold in average
lists, not varying work more than {
me full grade, based on the stand
Irds of the New Orleans market as /,
ldopted by the New Orleans Cot
on Exchange, which quotations
re 10 be posted prominently in the t
xchange rooms. Thus the grade t
quotations, or grade differences" +
S they are technically called, arc )
expected to be changed as frequen- /.
ly as justified by Developments /
n the actuaI cotton market. AS a /!
revolutionary measure, however, t
nd in order to reduce the chance .
t error to a minimum, the rules
lso provide that on the first Fri.
ay of each and every month the
ornnittee of classification and
together with the arbi.
ration committee on classification,
'hich jointly constitute the revi-
ion committee, shall meet, canvass
be situations throughly, aud make
ueh change, in spot grade quota
ions as may be found necessary to
nake the quotations and actual
rade conditions correspond. There
no element of self-perpetuation
q either committee, for new men,
ers are appointed each month.
Thus environed, the speculator
ncounters the greatest possible
ifficulty when he attempts to rig
he New Orleans cotton market.
{ futures climb above spots, the
peculative "short does not have
D depend upon any particular
rade but may tender any grade
hat suits his convenience with
quail, or rather approximately
quail advantage. Should futures
all fundamentally low, the specul-
tive ''longh may demand the cot
on, confident in The knowledge