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

have thought II necessary to arrive at
any clear definition In their own minds
Of the true nature and function OF
cotton exchange. II has seemed 10 he
thought unimportant TO go through the
long and 'wearisome process OF exact
analysis OF terms before formulating
the most sweeping proposals OF change
in all the methods and practices OF
the exchanges.
The most arbitrary assertions Of
what constitute ihc proper policy and
the public duties OF the exchanges
have been indulyed in by critics who
could have come no nearer To telling
what cotton exchange Is than to
say that ii is a place where cotton Is
traded in 1t is as AZ those upon whom
the responsibility rests Of preparing
sound regulations about our banking
and currency should start with the
assumption that everybody knows what
hanks are, what money is, and what
is meant hy credit, when every expert
knows that the popular notlon OF each
Of these things is incXact and COM
pietely insufficient as the basis Of
constructive work.
Takes Up Lending ones.
This. then. il my excuse for ASK
Ing the question. What is q cotton eX-
change? and my present purpose Is
to discuss this question briefly with
view TO defining. or, 70 uSe scien-
THE phrase. difercntiatinG the idea of
q cotton exchange from other more or
less similar conceptions which are cur
rently confused with II. and which dis
t,rb the proper understanding Of what
cotton exchanges can or cannot prop
4crly undertake o do in the omm ercial
world.
10 begin with let me say that 1
propose TO discuss only such a cotton
exchange as shows the all-round de-
velopmcnt of function which We find
in the great exchanges have named
Liverpool. New York and Kew Orlca ms.
| do not mean 10 include those So
called exchanges like Bremen abroad.
and like the many local exchanges in
the south. which are hardly more than
meeting places for cotton traders. or
which, al the most have developed
only one side of tile cotton business.
as. for example, trading in actual cot
Ton on the spot The cotton exchange
which i have in mind is great mar
ket for cotton, both on the spot and
for future delivery; and. above ali, nj
is cotton market in which the ny
laws and rules have been so adjusted
ON the Que hand. TO all the varieties of
cotton which nature affords. and. on
the other, to all the multfarious re-
uuiremcntS Of the cotton trade. that
il has been made possible for the trii,ic
generally To enter safely and under
standinSly into the-.va complex mass
of credit transactions which are called
for In the course of the prolonged and
hazardous task OF distributing 10 ulti-
mate users all over the wor:l the
gross and unassorted product OF mil
lions Of cotton producers great and
small, scattered over millions of sOua re
miles Of cotton producing territory.
or such exchanges there arc. az have
Indicated, really only three In the
world though there is fourth Havre.
which in limited and local way show
mast Of the characteristics Of the great
eXcha ages.
Cotton Merchants.
What, then. are some Of he char
acterstics Of such cotton exchange.
or cotton market, as have described? ?
The first md most important Is thu t
1t Is an association OF cotton mcr-
chants, of men whose economic (unc /.
tion in tho world is the 1istrihution OF
cotton MS nature gives Il to us, from
the producers to tile various users OF
II In accordance with the several needs
Of the latter 1t is upon tho class OF
cotton merchants that the world at
present rcposes the responsibility for
providing the ways and means by
which every cotton producer cnn all
ways. find an instant market Tor his
crop. no matter what its character may
be. aud by which The user OF cotton.
wherever ne may be. can always be
provided with the particular kind OF
cotton no requires. at any time and