New-York tribune., 1908-05-29

well the controversies as to differences wcIld
a9d # b15na no ea hhg a w0d R ere 5
applied thereto. with uniform ard accurate Glass; ~
the business Of the exchanges would be removed
In commenting on suggestions that have been
made for restricting deliveries single contracts
to grade. so as TO make the contract more
certain and advantageous one Mr. Smith says:
1t is wholly out of the question to make the
vide that only one particular grade shaIl De dev
cred In view Of the fact that future contrasts are
known. very few sellers of fu,ure contracts would
cotton on an exchange contract owing to Constant
I danger of intentional manipulation resulting in
practically destroy the future market by making
! It very narrow.
An exceedingly interesting suggestion, but one Of
doubtful practica biIity says. is that OF
| even running deliveries which provides that.
without restricting the range TO grades deliv-
cradle on contract in New York New Orleans,
the deliverer shall be compelled TO restrict tenders
on any single contract to a range of full
grade-that is, to range Of half grade in either
| direction from the grade rendered. What
appears to be the most serious objection to this
plan, Mr. Smith says. IS that it would unquestlon-
ably multiply the difficulties Of classification. Pos
sibly more practical suggestion, he adds. and
one which appears altogether unobjectionabIe and
worth A trial, would be clause inserted in the
contract allowing premiums for even running de-
liveries.
IMPROVEMENTS IN CLASSIFICATION.
In discussing suggestions that have been made
for improvements in classification. the report says;
one of these is recommenda ton for the estab
grades in all markets Ths is an exceedingly iis
portant matter and while there are some practical
do not appear 10 be insurmountable The estab-
Piled only 70 cotton rendered on future contracts
should far to reduce the friction which has been
this time; An especial ADVANTAGE of such stand =
TeIsies over gradng. is that they VoGd tend to
harmonze quotations OF the various grades in df-
report that the New York Cotton Exchange use the
for defeF3ng nj fs conract drerence one OBJ
lection advanced against thts plan is based on the
different markets which discrepancies, Of course
cYItv could be largely overcome Ths adoption Of
uniform standards by tending to promote uniform
ty in the basis Of quota ton. should go far 70
eliminate this objection
In conclusion the report says:
classification Of cotton at New York IN re recent
years has at times 9sep xeFy fa dge ana IN [3a oven on
grade cotton. Complaints that New Orleans cias-
shcations have been unduly severe are not equally
vel sustained. 1t is not unlikely. however, that
at times the aLbitratons IN New Orleans have
be made in connection with classification in either
wh0 b me eTrs tat NAM Of ne Complaints
against grading In either market due more 10
than fo n. 81 system Itself athough in the case Of
in some respects. tunda mentally wrong Many
part the abesnce of common basis Of classle
Hcation The adoption Of sdrs Uniform M standagd 81 Of
such controversies and at the sans time to secure
Of cotton the benefciai effects Of which would
be faI reschng s --s.+.- oars :, -. ro-t
gradgs dss!a6a that 6G5h the .Sog New
more specific definitions the character Of cotton
spaH5c res for the guidance of cassers and arb
traitors, Such Improvements are particularly de-
proposition that the value Of tinged and stained
cotton rendered on contract In Ne" York be de.
arbitrary types for such grades. even with the
tain some merit although there practical dffi-
cuIties in thus modifying the certificate system.
the New York market invariably be referred to an
va1ne II is however altosefher desirable that ap
peas at New Orleans be referred to a larger body
exarnina ton The identification Of individual ba lea
Of eqGn 4s IN should se adepeG an
The uncertainties which confront the buyer OF
failure to identify individual bales by grade can
not be excused Al the same tine tn. 1t is desirable
the assistant inspectors who make the preliminary
house 20 secure more nearly uniform COM
position OF individual lots -.
contract grades. the most practical limitation ap-
This would narrow the range OF deliverable
grades. -
ANY restriction whatever upon the range or
grades deliverable contract is. however. far
less important than the maintenance OF proper
system OF establishing differences and OF uni
form and accurate classification The delivery or
low grades or OF mixed assortment or grades on
a contract is not ir itself serious Injustice. pro-
yided these grades properly classed and are
deliverable only .heir proper values relative 10
middling With absolutely correct system or
on While 81 ths ensny desraS
becomes matter Of secondary Importance lf.
however. the commercial difference system were
edopted in the New York market and falthruiy
epplied both there and al New orleans and at
80 earne time a low-niddling clause, as above
outlined inserted In the contracts of the two ex-
changes an important step would De taken toward
.inriTg f1ture business in cotton a thoroughly
feo1,merctal equta BILE basis. and. In the opin-
49,. -, The bureau antagonism to the future sys-
Ter, in far the character OF the contract IS
concerned. would largely disappear.