The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-05-24

ture Of the first Gays session of the
American Cotton Manufacturers AS
sociation was a discussion today be-
tween Arthur Marsh. president OF
the New York Cotton Exchange. and
Lewis w. Parker. of Greenville. S. c..
chairman OF the committee on re-
lations with cotton exchanges. The
occasion was the report OF the COM
mittee, and the result was practically
an open rupture of the strained re-
lations which have existed for some
time between the Association and the
exchanges.
Mr. Parkers assertion that the New
York Cotton Exchange caters to
spectators rather than to the needs
of the legitimate business. and that
the prices OF cotton have been mani
pulated by members OF the Exchange
10 the great detriment OF both spin
ners and producers, was cheered to
the echo.
President Marsh warmly defended
the Exchange. pointing out that 1t is
an association Of merchants trading
in cotton 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 contin-
uning the committee for a further
conference. with instructions that IL
relief is not given from exchanges, II
shall seek n remedy through legisla-
tive channels.
The gist OF the committees report Is
as follows:
Manufacturers associations should
have no fight against cotton ex-
changes. IL those exchanges truly re-
fleet conditions Of spot cotton. On the
contrary, an exchange. IL legitimately
managed and regulated. and II the
prices ruling thereon are truly rep
resentative OF spot values, is and
should be of decided advantage to
cotton manufacturers. as also to pro-
ducers: but. IL on the contrary, the
prices reflected on the exchanges are
merely the result OF speculation for
or against the value Of the commodity.
or IL those prices are only reflective
of the speculative actions of one ele-
ment as against another element, then
the exchange becomes a serious dis
advantage TO the manufacturer and to
producers and ceases to be legiti-
mate body.
The two principal exchanges are
the New Orleans and New York Cot
ton Exchanges. Under the rules OF
the New Orleans Exchange. the prices
ruling theron are In much closer re-
lation TO the price of spot cotton than,
as rule. are the prices OF contracts
on the New York Cotton Exrhange.
by reason Of the rules of the New
York Cotton Exchange. 1t Is seldom
that the prices OF contracts on that
exchange are on parity with spot
cotton or truly represent the price of
spot cotton In the community OF pro-
duction plus the carrying charge Of
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-
cede that a majority OF the members
OF the New York Cotton Exchange are
more impressed with the view that IT
is TO their interest to cater TO specu-
lators than to make of that body a
legitiamte exchange.
Your committee recommends that
this Association once more express It's
hopes that the cotton exchanges. and
particularly the New York Cotton
Exchange. will rectlfy their rules be-
tween contract prices and spot cot
ton; that II these rules be not so
properly regulated as 10 make this
relation. that your committee he au
thorized In the name OF the Asso-
cistion 10 present such memorials to
the legislative bodies as may lead to
proper regulation 10y them OF the
cotton exchanges"
President u. Y. Cooper. Of Hen
derson. y. g.. i'm his annual address
urged the necessity for the South to
raise more cotton 10 meet the increas-
ed demands Of che manufacturers.
The crop OF 1901 will be worth
$1,000. .OOO. OOo." he said. cor twice as
much as the output Of all the gold
mines "f the world combined for the
same Ve1r