The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-19

manlpula ton. What the manufacturers
demands and what he has a right 10
demand Is that the price on the eN-
changes shall he truly reflective of the
price of spot cotton. BY no means has
this price been SO reflective on at least
some of the exchanges during recent
past seasons. H.t i!ss
manufacturers associations should
have no light against cotton exchanges
itAthose exchanges truly reflect condt
pm
and regulated. and II the prices ruling
thereon are truly representative oil
spot values. Is and should he or de-
cided advantage to cotton manufacture
ers. as also to producers: but Ii, OIL the
contrary. the prices reflected on the
exchanges are merely the. result OF
speculation FOR or against the value OF
The commodity, of If those prices are
only reflective of the speculative nc-
tons OF one elcmentas against another
element. then the exchange becomes a
serious disadvantage To the manufac-
turers and TO producers, and ceases to
be q legitimate body.
Two Principal Exchanges.
or course. the two principal ex-
New Orleans and New York Cotton EN-
changes, 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 a
rule arc the prices or contracts on the
New York Cotton lI%cnAnSe The mem
HtTS pI tue New orleans Cotton ZEN
change have shown much greater
willingness TO conform 10 the suSgcs-
lions OF manufacturers and producers.
In order to make their quotations re-
hecive of spot conditions. than have
the members OF the New York Cotton
Exchange. OF course. the operations
on the New York Exchange are many
times greater than they are upon the
New Orleans Exchange. and there fore
the unfortunate effects of miSquota-
tons on the New York Cotton En-
chance ,,ll,,,,s; ARE many times what the
change. Apparently members of the
New York Cotton Exchange have been
more impressed with the necessity OF
them advantageous To spectators and
To manipulators than they have been
TO make them of such character as to
pe ADVANTAGEOUS to the operations of
the manufacturers and producers
BY reason of the rules OF the New
York Cotton Exchange II Is seldom
mat the prices of contracts on that
exchange are on a parity with spot cot
ton, or truly represent the prices Tot
spot cotton in the community OF pro-
duction. plus the carrying charge TO
Contract Price Varies.
AZ times the prices of contracts are
much above the prices of spot cotton.
" other times they are much below.
s an5 instance instance; during last November
the New York Cotton Exchange we're
considerably In excess of the prices of
SPOT cotton In the South In portions
on the New York Cotton Exchange
were MUCH below those existing III the
South. and practically from that, date
, 70 the present this disparity has con
November and December an undue
quantity of cotton was attracted by the
nigh prices OH the New York Cotton
tNchanGe TO that market, and this cot
ION when SO received was smplyhused
as a club with which to depress UNI
duly the prices during subsequent
months. = III
The experience. OF the present season
Is not different from what 1t was the
season before. and. In fact In every.
wear for the last five or six wears there
has been on the New York Cotton IIx
GhanSe q constant Disparity between
prices OF spot cotton and contract quo
tattons We We're told in the season
Of 1909 that this, was an unusual con
dltion. brought about bv the unusIioI
quantity of low grades: yet this same
Disparity existed in the succeeding
and it has continued 10 cSis; n one
Tine or another of the season during
ench year.
Cater Ia SPECTATORS.
our committee Is forced 10 conclude
mat ma jority OF the members of the
New York Cotton Exchange are more
impressed with the view that it is Ia
their interest To cater to SPECTATORS
than to make Of their body ii legiti-
mate eXchange reflective Of the true
yalne OF the commodity In which they
deal. !; Is Just rs illegitimate for the
contrast prices upon the New York COT
ton Exchange to lie one 10 one ana n
half cents below the true price OF tie
raw material as these prices We're Ia
January and February, as 1t is for the
prices on the exchanges To he one. half
CONTINUED on Third PoreI -----