New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-19
HITS COTTON EXCHANGES
Report Adopted by Manufactur-
ers' Convention a. Richmond.
A. R. MARSH MAKES DEFENCE
Loses Prolonged Debate with
Chairman of Association Cor
mittee on Exchange Citations.

urers' Association was featured by pro
longed debate between Arthur r. Marsh
president OF the New York Cotton EN-
change, and Lewis w. Parker, Of Green
vile. ;. c., chairman Of the committee OH
relations with cotton exchanges. The oc-
casion was the report OF the committed
and tho result was practically an open
rapture Of the strained relations winch
have existed for some time between the
association and the exchanges.
Mr. Parker's assertion that the New YORK
Cotton Exchange caters TO SPECTATORS
IA Their than to the needs legitimate pusi-
ness. and that the prices Of cotton have
teen manipulated by members Of the eN-
change to the great detriment Of both spin
ners and producers. was cheered 10 .'ne
echo by the convention PresIl lent Marsh
warmly defended the exchange. pointing out
that il was an association OF merchants
trading in cotton with rules In the interest
Of the merchants rather than IN that OF the
manufactures or Of the producers.
The convention decided in favor OF Mr..
Parker, adopting the report OF the commit
tee unanimously. and continuing the COM
nttee for further conference with repre-
sentatives of the exchanges and with IN
structons that II relief is not given II shall
seek remedy through legislative channels.
The gist of the committees report is as
follows
Manufacturers associations should have
no fight against cotton exchanges II those
exchanges truly reflect conditions OF spot
cotton on the contrary, an exchange II
legitmately managed and regulated and II
the prices ruling thereon are truly rep,
resentative Of spot values. IT, and should
be Of decided advantage to cotton manu-
facturers, as also to producers: but II, on
the contrary, the prices reflected on the
exchanges are merely the result Of specula-
ton for or against the value OF the COM
modify, or IL those prices are only reflective
of the speculative actions Of one element
as against another element then the ex-
change becomes a serious disadvantage 10
the manufacturers and to producers and
ceases TO be legitimate BODY.
Two Principal Exchanges.
The two principal exchanges in the United
States are the New Orleans and New YORK
cotton exchanges. Under the rules OF the
New Orleans exchange the prices ruling
thereon are In much closer relation TO the
prices OF spot cotton than, AS RUE, are
the prices OF contracts on the New YORK
Cotton Exchange.
BY reason of the rules of the New YORK
Cotton Exchange il is seldom That the
prices OF contracts on that exchange are
on parity with spot cotton or Truly rep
resent the prices Of spot cottol III tiie NU.iI.
munty Of production. plus the carrying
charge TO market. At times the prices OF
contracts are much above the prices ci
spot cotton At other times they are much
below.
Your committee Is forced 20 conclude that
q majority of the members OF the New
York Cotton Exchange are more lnpresSeu
With the view that IT is 10 thelI lli'ete.s ~
cater 10 SPECTATORS than to make OF their
body a legitimate exchange, renectiVe OF
the true value of the commodity In winch
they deal " .,.
sociation once more express It's earnest
hone that the cotton exchanges, ana par
ticulary the New York Cotton Ekcnanse.
will rectify their rules SO as 10 I!ahs ,,tcse
and proper relation between contract prices
and spot cotton: that il these ruies pe not
SO properly regulated as to MAKE tnls IN
lation your committee he authorized, ~,
tho name of the association, 10 Piesent
such memorials to the legislative bodies as
| may lead to a proper regulation py then'
| of the cotton exchanges.
President Cooper in his annual address
urged the necessity for the South to raise
more cotton to meet the increasing demand
Of the manufacturers
Twice the Value Of Gold Mines.
THE crop of 1901 will be worth
81 600 10000" he said. "or twice as much
as the output of all the gold mines or the
world combined for the same year. crops
Of y. 10000 to 100000 bales annually are
necessary for legitimate demands AT re-
munerative prices to the growers. Less
than this amount means manipulated mar
kets and unsatisfactory trade conditiohs
While the number of spindles and acreage
have increased enormously. the production
of American cotton has declined.
President Cooper deplored friction among
cotton growers manufacturers and repre-
sentatives Of the exchanges. II would be 10
their mutual interest he said. II the eX-
changes themselves would revise their laws
and methods
vew Orleans May ls.-"There is not
enough cotton TO go around; the price VIII
no higher" declared Frank b. Hayne. the
hill leader. to-day. Hayne caused excite
ment in the New Orleans exchange yester-
dav nv Offering TO buy 10000 bales of May
and July at the market price, and then
going one better by Offering an eighth OF a
cent higher than the exchange quotations
for all the cotton In the city.
I'VE know how much cotton we VIII get
bet een now and September J., he con-
tinued There is not enough TO Keep the
mills running and some OF them must close
down The world needs 27,OOo,WO bales, ana
oil Il will get Will be 22,5co,GO bales. or
100000 short of the amount required ana
what would have been used had the staple
been grown. That IS the situation. l be-
lieve cotton Will go higher"