The Birmingham age-herald., 1909-04-26

trade interests. In this respect the New Orleans cotton exchange came in for com mendation in the main and only in few particulars were its contract and rules criticised.
 The New Orleans cotton exchange real izing it's obligation to the trade and to the public, at once inaugurated an inves- tgation upon it's own account for the purpose of correcting any drawbacks that existed and of improving the entire sys- tenn of future trading. A representative committee discussed the matter fully and after suggestions from planters, mer- chants, manufacturers and all concerned, and after consulting with Commissioner Herbert Knox Smith and accepting and adopting his recommendations and sug gestions, adopted report which the mem bers of the exchange subsequently, in dorsed and which has been effeetuated in a set of rules which will in the near fu- ture be put into operation.
 The salient changes and improvements made by the exchange are as follows:
 The contract: The new contract elimi- mates from delivery all cotton of perished staple and allow grade stains and tinges and makes strict good ordinary on the present type-being the equivalent of good ordinary on the proposed new type-the lowest grade tenderable on contract.
 This improvement will do away entirely with the objection that the contract was appreciated in value because of the fear of buyers that they might be required to receive unspinnable and unmerchantable cotton or cotton the value of which they could not readily ascertain. The buyer of the new contract is assured that he will not be required to take any cotton that will be undesirable and a drug on the market He will therefore not fear to take delivery and the value of the con- tract will be thereby enhanced.
 Permanent standards: The exchange proposes to adopt standard of classiflca- ton which shall remain permanent and not change from year to year This rule will obviate good deal of the uneasiness of prospective buyers and sellers by as-
 suring them that the standard in force at
 the time they make the contract will be
 the same upon which the contract is set tied
 Certifcation: The exchange will inaugu- , rate a system of inspection and classiflea- 1 tion of cotton by experts who will be em- l ployed by the exchange for that purpose
 and who shall have no interest whatever l in any cotton business, hence entirely dis l interested. Cotton to be delivered on con l tract must be inspected and classed by | the exchange and settlements between the I parties to the contract must be made 1 upon the basis of such classification. A | certificate of grade will follow each lot 1 classed, the correctness of which certif- ] cate will be guaranteed by fund of the l exchange, and whenever thereafter, dur 1 ing the life of the certificate, this lot ot cotton is delivered on contract, settle 1 ment between the parties must be made , on the grades as shown on the certificate i The persistent objection against receiving
 cotton on contract will be removed. The | buyer will know that he can safely re. l ceive the cotton, and if he so elects can 1 re-deliver 1t on contract on the same l grade basis that he received it, or If ht I does not wish to re-deliver on contract ht | can offer the cotton on the spot market
 and if any mistake has been made in the 1 grading by the exchange he can recover l his loss from the fund provided for tha 1 purpose.
 1 The changes and Improvements made by l the exchange have received the approva | of Commissioner Herbert Knox Smith ant | 1t is confidently believed that under thu
 new system future trading will be re | lieved of its objectionable features ant
 will satisfactorily perform its logical anC
 legitimate function, which is to improve ] the market for cotton and to advance thu
 interests of all who therein trade.