Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-01-11
Mistellausuas 8eaains.
STANDPOINT OF THE EXCHANGE.
II is Claimed That the Contracts Are
Fair and Equitable.

The controversy In the cotton ex-
change over the revision of quotations
for spot cotton and the criticisms made
by advocates OF a reform In methods
has elected vigorous defences OF the
management and arguments justifying
the present system. Various officers
Of the exchange insisted that the New
York contract was the fairest in the
world and that the system could not
be changed to that Of New Orleans,
for instance, without leaving the
market susceptible to corners that
would throw the whole trade into con-
fusion or disaster.
"The entire spirit Of the exchange"
said Walter G.. Hubbard, the presi-
dent, rs opposition to corners. Early
experience demonstrated that frequent
revisions Of the premiums and dis
counts made 1t possible for the revi-
sion committee to put such prices on
or off as to prevent the delivery Of
cotton In this market with the conse-
quent loss to those who had made con-
tracts OF delivery. The present sys-
tenn makes such corners impossible,
and It also enables the exchange to
facilitate the delivery In New York
OF all the cotton the planters will
raise" 1920
1.-The New York exchange" said
Samuel T. Hubbard, former presi-
dent of the exchange, adopted thirty
years ago a policy of offering to
southern growers every facility for the
delivery of all grades OF cotton in this
market The purpose was two-fold.
1t was desired to benefit the south and
to prevent corners in New York.
More than fifteen years ago the
New York exchange found 1t better to
have the differences in discounts and
premiums settled twice a year. The
change In differences from month to
month or week to week. It was seen,
furnished opportunities for very rapid
changes in the value Of cotton deliver
ed. Therefore It was considered pref
erable to have world established
value of the contract with reference
to differences as fixed in November.
Such regulation, 1t was felt, would al
so be advantageous In permitting the
planter or shipper In the south to send
cotton here with knowledge that there
would be no difference in the rates
for the various grades between. the
time Of shipment and the receipt Of
the cotton here.
I'm the early days there was revi-
sion committee Of FIVE, which is the
number in most of the other markets
at present. Now, a committee Of five
Is controlled by three and since three
constitute a quorum the committee Is
sometimes controlled by two. recall
In my experience an instance when
the discount on q various grade was
lowered at the urging Of a dealer who
had accumulated all of that grade
there was in the country. The result
was a heavy profit to the dealer. oc-
currences of this kind were frequent
and 1t was partly to put stop to
them that the present system was es-
tablished
AT the corresponding period last
year there was an unusual amount Of
high grade cotton in the market, and
there was objection because the pur-
chasers under the exchanges form Of
contract were obliged to pay pre-
MUM. Now there is criticism because
discounts on the low grades are not
high enough. The differences last year
eventually adjusted themselves and
have little doubt that there will be
the same result this year.
1T is not correct to consider the
price arbitrary. When. as this year,
the greater part Of the cotton is low
grade the weight Of that cotton de-
presses the price Of our contract, which
Of course is based on middling."
The only change, 1t was learned, that
Is now under consideration by the
management is that of making three