The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-04-27


rules under which the same we're adj
mlnistered, did exist 10 the detrl.
ment Of the legitimate trade interests
In this respect the New Orleans Cot
ton exchange came IN for commenda.
tlon IN the main and only IN a few
particulars were ita contract and rule
criticised
The New Orleans Cotton exchange
realizing rs obligation TO the trade
and 70 the public al once inaugurated
an investigation upon It's own ac-
count for the purpose OF correcting
any drawbacks that existed and OF
improving the entire system OF future
tradi4g Al represeDtatiye commit
teed lscussed the metter full and a.
tel suggestions from planters. mer
chants, manufacturers and all CON
.oerned, and after consulting with Com
missioner Herbert Knox Smith and ac
ceptlng and adopting his recommends
tlons and suggestions. adopted ro.
port which the members OF the cx.
change subsequently endorsed and
which has been effectuated IN set
Of rules which viii IN the near ~.
turn be put In operation.
The salient cIangos and improve.
ments made by the cxchangs are aA
follows:
Tho contract: The now contract
eliminates from delivery ail cotton
Of nerIshed staple and all low grade
stains and iIngcs and makes siilot
good ordinary on lie present type- 4
being the equivalent Of good ordinary
on The proposed ncw type--thc lowest
grade ienderahle on contract
This Improvement WIN do away en-.
tirely With The objection that the cnn-
tract was deprecated Ia value ho.
cause Of the fear OF buyers that they
might be required TO receive unspln-
nable and understandable cotton or|
cotton the value az which they eouldl
not readily ascertain The buyers
OF the new contract Is assured that
he viii not be required 10 lake any
cotton that VII bc undesirable and a
drug on The market He will there
fore not fear 70 take delivery and the
value o. tho contract win be thereby
enhanoed
Permanent standards The exchange
proposes to adept g standard OF class
lfratlOn which shall remaln permal.
eut and not change from gear 10
year This rule viii obviate good
deal OF the uneasIness Of prospective
buyers and sellers. by assuring them
that the standard IN force at ihe time
they make the contract will be the
same upon which the contract IS SET.
tied
Certlhcation The exchange Vim ~.
uugurate q system Of inspection and
classification Of cotton by experts who
will be employed BY the exchange
for that purpose and who shall have
no interest whatever IN any cotton
business. hence entirely disinteresied
Cotton to be delivered on contract
must be inspected and classeI by The
exchange and settlements between
the parties TO the contract must be
made npm the basis OF such classl.
ilcation A certificate OF grade Will
follow each lot claSsed, the correct
ness Of which certificate viii be guar
anleed hy 4 fund Of the exchange.
and whenever thereafter during life
of the certificate. this lot Of Gotten Is
delivered on contract setllement be.
tween the parties must be made on
the grades as shown on the eefllh-
cate. The persistent objection against
receiving cotton on contract will be
removed. The buyer win know that
he can safely receive the cotton and
Il he So elects can re.dellver It on
contract on the same grade basis that
he received II or It he does not wish
10 re.dellver on contract be can offer
the cotton 90 the spot market and
ifany mistake has neen made IN tho
grading By the exchange he ran re.
cover his loss from the funa nf0gid-
cd for that purpose
Tho changes and improvements
made hy the exchange have received
The approval 81 Commissioner Her
bert Knox Smith. and II Is c0nident
Il believed that under the new syn.
tenn future trading vii be relieved Of
It's objectionable features and viii
satisfactorily perform ltS logical AND
legitimate function. which = to im
prove the market iaf coilun and y
advance the interests ui Az who
therein trade.