The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1911-05-20
SAYS ITS BAD
Dir. Parker Denouuees Tie Meihods oE
lhe New York Cotton Exeh; Dgr.
SPEAKS VERY PLAINLY

NJ hfbND HEN LH4!dL1
Has Argument With the President
of the Exchange Who Was Pres
ent, But the Manufacturers Asso-
citation Agrees With MIR. Parker
and Adopts Condemnatory Resolu-
ton.
The feature of the first days seq
sion of the American Cotton Manu-
facturers' association, which met on
Thursday at Richmond, Va, was a
a heated discussion in the afternoon
between Arthur Marsh, president Of
the New York cotton exchange, and
Lewis w. Parker of Greenville, chair
man Of the committee on relations
with cotton exchanges. The occa-
sion was the report Of the committee
and the result was practically AN
open rupture of the strained rela-
tions which have existed for some
time between the association and the
exchanges.
Pr. Parker's assertion that the. New
York cotton exchange caters to- spec
ulators rather than to the needs OF
legitimate business, and that the
prices of cotton have been manipulat-
ed by members Of the exchange, to
the great detriment of both spin
ners and producers, was cheered to
the echo by the convention. Mr..
Marsh warmly defended the exchange
and pointd out that it was an asse-
citation Of merchants trading in cot
ton, with rules in the interest of the
merchants rather than in that of the
manufacturer or the producer.
The convention decided with Mr..
Parker, adopting the report of the
committee unanimously and continu-
ing the committee for further con-
ference with representatives of the
exchanges and with instructions that
if relief is not given it shall seek a
remedy through legislative channels.
The gist of the committees report
81 as follows:
Manufacturers association should
have no fight against cotton exchan-
ges If those exchanges truly reflect
conditions of spot cotton. On the
contrary, an exchange, if legitimately
managed and regulated, and If the
prices ruling thereon are truly rep
sdrtative Of spot values. Is and
should be Of decided advantage to-
cotton manufacturers. as also to pro-
ducers, but if, on the contrary, the
prices reflected on the exchanges are
merely the result of speculation for
or against the value of the comOd-
ity, or If those prices are only re-
! fective of the speculative actions
Of one element as against another
element, then the exchange becomes
serious disadvantage to the mana-
facturers and to producers and ceases
to be legitimate body. '
THE two principal exchanges In
the United States are the New Or
leans and New York cotton eXchan-
ges. 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 there are the prices Of con-
tracts on the New York cotton ex-
change.
by reason of the rules Of the New
York cotton exchange, it is seldom
that the prices of contracts on that
exchange are on a parity with spot
cotton or truly representative OF
the price of spot cotton in the COM
munity of production plus the car
riage charge to market.
AT times the prices of contracts
are much above the prices Of spot
cotton. At other times they are much
below.
Your committee is forced to con-
clnde that a majority Of the membe
! of the New York cotton exchange are
more impressed with the view that
it is to their interest to cater to spec
ulators than to make of their body
legitimate exchange reflective Of
the true value of tho commodity in
which they deal.
your committee recommends that
! this association once more express It's
earhdst hope that the cotton ex-
changes. and particularly THE New
! York exchange, will rectify their
rules so as to make true and prop
er relation between contract prices
and spot cotton; that if these rules
be not so properly regulated as to
make this relation, that your commit
! tee be authorized in the name of the
association to present such memorials
to the legislative bodies as may lead
to proper regulation by them OF
tba rotton pyphanpeS