The Montgomery advertiser., 1908-05-29


 up cotton on the exchanges fer d. rect shipment to their ufffls. s Proposal for Even-Hunnfng Deliveries
 An exceedingly interesting sugges- tion, but one Of rather doubtfula prac- the range of grades now deliverable on contract .in New. York. or New Or leans. the deliverer shall be- compelled to restrict tender on any single con traet;to a, range of one full grade-that is,r to range ofsa half grade in. either direction, from the. mean grade tender ed in other words that each separate delivery shall be fairly even. running. This suggestion would not, as just stated, exclude from contract deliveries any grades of cotton now recognized. but would simply prevent great mix ture of grades in q. single delivery. which has been such an iobjeetionaibe feature. is,,
 Tn support of such. . requirement. of even-runninR deliveries 1t was argued that many spinners would thus be able to receive cotton directly. ons con- tract This argument, however, Is de- nied. and apparently has little weight. Since the seller would still have the privilege of selecting what grade or grades he would deliver, the receiver would still probably be. forced to take. as a rule, surplus and undesirable grades instead. of those grades in most active demand. Moreover he would. not. knOW III dQFdnC6 4InG CHATACLCr oI ttlS grades he would receive. 'Copsequent- ly, It. is argued with force that the con tract would not be substantia1Iy, better for the spinner than the one. now. in use. ,- = 5e
 Advocates of even running deliveries. while admitting this. contend that such deliveries would be of great ad- vantage to cotton merchants taking up cotton On contract, because, such de- liveries even if not suitable for the use of a particular spinner. could be disposed of to better advantage in the spot market than the extremely mixed deliveries now often received on con tend to prevent abuse of. the. sellers privilege of delivering a wide range of grades for the purpose of clubbing the future market by. undesirable ten- ters of cotton, thus forcing 'reeeivers+tc is no doubt that such eyen-running de- 1iveries would be a great advantage to cotton merchants receiving cotton on contract. although, 1t is urged that, by the higher price which contracts calling for such deliveries would com mand. yss
 On the other hand.s the provision for even from the standpoint of the mer- chant. because of the heavy, burden which would be placed upon the seller of future contract in making deltv- cries. It is argued that such re- auirement would work to the advan- tage of large cotton Smsrchahts as against their smaller competitofs- The merchants handling many thousands of bales of cotton readily class 1t out Into fairly even running lots for delivery on contract. but this would be an exceedingly difacult matter for a small cotton merchant who handles perhaps only . few hundred or "a few thousand bales. The small country oka aAa ruvhT hrtu Nntfnn V4HAnf- CTS and growers would. 1t ig urged, be particularly handicapped. The adop- tion of a provision for even-running deliveries might mean that a merchant who had sold contracts. would be un- able to make even-runnipg deliveries, and consequently might ind himself in the absurd position of being caught short of the market with sufncient amount of desirable cotton on-hand for The difncuIty of the seller in making even-running deliveries would be eg- pecially great in the New York market, where the. stock 'is at times badly mixed and where, owing to de- Iays in transportation eonsignments of cotton often arrive lin badly broken lots. f'.'a .'a F''-
 It is also urged that the requirement of even-running deliveries would pre- vent small planters and growers from using the contract market to dispose of their crop because they would not have enough cotton of each grade to make tip a delivery of approxiHateiy cor,iraratfveiy little force as very few planters or growers, in any case sell future contracts with the idea of de- livering cotton upon them.
 What appears to be the most serious objection to such an even-runnins con- tract is that it would unquestionaoly multiply the difficulties .of classihca- ton. Under the present broad range these dIfiiculties are sufficiently serious. A stipulation for even.sunnins sI dsMv- al new danger lines" or rejection limits. over each of which disputes would arise, resulting in. endless con fusion. ..-..s3 s T l.s strietion upon contract deliveries ap- pear to outwegh its advantages. Desirable as even-running deliveries on contract are. 1t is douptfdl1 whether they are practicable =.
 sugkeNffOn of Premium for BVe1-Aum~ N ming Deliveries.
 As A substitute for q provision com . pefifng even-running deliveries itS hee been Suggested that clause De .snssr,- z, . for such deliveries. such premiums to Be adjusted according to-the mum per or bales of any given grade In any, single ance would be automatic and would not iconplIcate future dealings in contracts which would still be Identical in form. A similar allowance is made at the present time for cotton Of exSra Stapis ienEth In both the New Orleans, and .Nayy York mark cts. Such q. premium. if correct in amount. seems, entlrsly fair. and, while 1t is extremely douDt" ft,l wh hether 1t would result tn. any ma terial restriction of the range. Of grades delivered on contract. its adoption ap. pears altogether unobtectlonabieS and worth a Es!. rhr~~-4srnAe .comtrmca
 Another suggestion. Jess radical than that for leven-runlng deliveries, iee tn@t not more than three grades ot cotton contract. the seller to have the prlvt- .lexe of selecting these three from the entire tendcrablH range as atg present dennsd. While such provision would tend to prevent the extreme mlxture. ot grades which frequsntly occurs under ina present form of contract on the other hand 1t would not prevent the srn5xture of high grade with loW-Brade cotton. For this reason. the improve" lrnAnt If any, which would result rom the adoption of such sproyaslons sls 2 ~, en : ; serious consideration of 1t. The obteo- tions raised by the seller to the require nnAft of strictly. even-runntnB oeIWer- -ies also apply to the proposed three grade contract. tn ough. Of course wita mug 9p9r1s!estscaSIIity z! ses I of Two contracts.
 StfII another susgestions Is that, cot Tan exchannes should provide two con- tracts one permitting the delivery or .Tniddling cotton. and the grades 9p2Ye, and the other the delivery of mtddgng cotton and the grades below. Whue this suggestion Ineets soFae ox tne op- ,factions aRainst a apeetficg contract. in fbat the danger of Squeezes- would ne less, 1t is generally prontouHneeu tHs ~, il tS .