The Montgomery advertiser., 1908-05-29


 der to locate few bales desired 60 any particular time: It has been ar Eued that the cost of storage and other New York that such Identification of bales is impracttcable. This argument does not appear to be well supported.
 eas ase Nsg YufS fhst running lots at the dock, SO as to allow range of but one full grade on any one certificate. This may not be fea- single certificate in New York is un- doubtedly very objectionable; but 1t Is to some extent unavoidable, owing to necessarily employed in inspecting cot ton at the docks, and also to the Irreg- ular delivery of cotton at New York by transportation companies. It Is individual bales. which would go far sired.1 Extension of New York Certificate sy.-
 tenn to Southern Markets.
 charscter, of the New York Stock some members of the New York Cotton Ex- change have for years urged the ex- sns sasos S ths New sy.s xSk markets. Under this plan cotton would be stored in licensed warehouses in the South. Such warehouses would be uHuof Ine cOuLEOl or the New I0rk Cotton Exchange and the grade of cot ton stored in them would be establish ed by the inspection bureau at New York from samples sent there. Such cotton Sew Yonf Ssd Ssoae si being shipped to New York, the re- ceiver being allowed to deduct from the contract price the shipping expenses from the. point of actual delivery to penalty. 1t is i urged s in in sSport 9astfii of this plan that 1t would not only materially sbs upoa the NUppy oT of cotton dslysr S would make the stock much more rep resentative of the entire crop instead of being confined. as at present. largely tions to this system are that 1t would increase the advantages of the seller of contracts in New York. which are already very great, and that 1t is par could not know, in advance where he would receive his cotton. These and other minor arguments are discussed event, such an extension of the sys- tenn should not be countenanced unless the New York Cotton Exchange re- adopts the "commercial-dinference'' the system would involve a correspond ing extension of the evils of fixed diff ferences. exhaustively discussed in Part of this report.]
 NOnUBtMhmtA Ac8uE0ANk kN4n&e OK GE00G0
 Deliverable on Contract.
 Another feature of future contracts in cotton which has been Q source of lowed the seller of delivering a wide htg hntgs saDre 0f oS .nris r ig straS whp p!aints on this score fall into two classes. Tn the first place. many spin ners, and a few cotton merchants, ob- sscs,s ssscs to the. the delivery of more than 2 contract They condemn the delivery of wide range of grades even, though chantable The second class of com plaints is directed especially against the privilege which the seller has un- der der the present contract of delivering not desired by the ordinary spinner.
 Wide Range of Grades at Present De-
 liverable.
 That the ordinary delivery of cotton on contract does comprise very wide cluding the quarter grades formerly deliverable at New York, 1t has not been unsual for deliveries in that mar ket to embrace twenty grades or more. The delivery, moreover, frequently in- cludes with white cotton of fairly high grade tinged and stained cotton of low grade. further serious objection Is found in an individual lot covered by a single grade certificate, which means that the desired grades can be sepa- rated only at considerable expense. COmDarisOn of Deliveries af New York and New Orleans.
 Deliveries in the New Orleans market are, as a rule, much less mixed than at New York, but still are often so wide as to be quite unsatisfactory to the receiver and particularly to spin ners Direct comparison of deliveries in the two markets cannot be made for the reason that under the New Orleans system system. no record Is kept of the grades ferences on and off nliddling which are allowed by arbitrators on various lots or cotton distinguished by private delivery of cotton fin New Orleans en1- braces rather less than five marks, but since mark might cover more than one grade or half grade the number the number of grades embraced in de- livertes at New York. It is certain. however. as just stated, that deliveries in New Orleans are less mixed than in
 The fact has been frequently over looked that the larger number of grades formerly deliverable at New did not mean a correspondingly greater range of grades Prior to January 1, 1903, the New York Cotton Exchange
 
 ter grades were not recognized by New Orleans. but cotton of such quality was deliverable in that market, allowance for its intermediate character being made through the grade differences ap- piled by arbitrators. Again, during the present year the New York Cotton Ex- change has eliminated from its list of deliverable grades several of the low est formerly tenderable. including strict good ordinary tinged, strict low middling stained, and low mtddling stained. The deliverable range at New York is now nominally somewhat mar rower with respect to tinged and stain ed cottons than that at New Orleans; practically, owing to more rigid clas- sification at New Orleans, the actual difference in range Is not great.
 Alleged Mixing of Grades for Manlpu- lative Purposes.
 It has been charged that deliveries, particularly in New York, have been rily large number of grades for the ex- press purpose of forcing the holder of the contract to sell it out rather than take up the cotton. and that in such cases the seller of the contract has been able to buy 1t back at a decline. While such clubbing the market" may occur at times, the deliberate mixing of grades for manipulative purposes does not appear to have been a general prac- tice. 1t Is undoubtedly true that buy CTS of contracts in the New York mar ket frequently run from noticesp- | that is, sell out tn cir contracts rather than accept delivery-but this Is true | to some extent of all future markets and is partly due to the fact that vast | numbers of contracts are purchased by | have the capital necessary to actually | take up the cotton. There Is little doubt that at times sellers of contracts at New York have abused their option A-NN M..