The herald and news. [volume] (Newberry S.C.) 1903-1937, 1911-05-23
COTTON EXCHANGE BAD.
leHis W. Parker Denounces the Meth
ods of New York B0dy-Has
Argument With Marsh.

The feature Of the first days ses-
'$ion of the American Cotton Manufac-
urers' association in Richmond, Va,
vas a heated discussion on Thursday
Between Arthur Marsh, president OF
2he New York cotton exchange, and
Lewis W. Parker, of Greenville, chair
man Of the committee on relations
with cotton exchanges. The occasion
vas the report Of the committee and
be result was practically an open
lpture Of the strained relations
which have existed for some time be-
eween the association and the ex-
Echan ges.
Mr.. Parker's assertion that the New
York cotton exchange caters to spe-
culators rather than to the needs CT
legitimate business, and that the
prices of cotton have been manlpu-
hated by members Of the exchange, to
the great dertiment Of both spinners
and producers, was cheered to the
echo by the convention. Mr.. Marsh
warmly defended the exchange, point
ing out that it is an association of
merchants trading in cotton, with
rules in the interest of the merchants
rather than in that of the manufac-
turer or the producer.
Sides With Parker.
The convention decided with Mr..
Parker, adopting the report of the
committee unanimously and continu-
ing the committee for further confer
ence with representatives Of the ex-
changes and with instructions that if
relief is not given it shall seek a
remedy through legislative channels.
The gist Of the committees report
is as follows:
Manufacturers associations should
have no fight against cotton ex-
changes if those exchanges truly re-
feet conditions of spot cotton. On
the contrary, an exchange, if legiti-
mately managed and regulated, and
if the prices ruling thereon are truly
representative of spot values, is and
should be of decided advantage to cot
ton manufacturers, as also to produc-
ers, but if, on the contrary, the prices
reflected on the exchanges are mere
y. the result of speculation for or
against the value of the commodity,
or if those prices are only reflective
OF. the speculative actions Of one ele~
tment as against another element,
then the exchange becomes a serious
disadvantage to the manufacturers
and to producers and ceases to be
legitimate body.
New Orleans Better.
"The two principal exchanges in
the United States are the New Or
leans and New York exchanges. I'm
1der the rules Of the New Orleans ex-
change the prices ruling thereon are
in much closer relation to the prices
OF spot cotton than as a rule there
are the prices of contracts on the
New York cotton exchange.
{ "By reason of the rules of the New
York cotton exchange, it is seldom
that the prices of contracts on that
exchange are on parity with spot
cotton or truly representative of the
price Of spot cotton in the community
of production plus the carriage
charge to market.
"At times the prices OF contracts
are much above the prices of spot
cotton. At other times they are much
below.
Cater to Spectators
"Your committee is forced to con-
clude 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 specula-
tors than to make Of their body
legitimate exchange reflective Of the
true value of the commodity in which
they deal.
"Tour committee recommends that
this association once more express its
earnest hope that the cotton exchang-
es, and particularly the New York
exchange, will rectify their rules so
as to make a true and proper relation
between contract prices and spot cot
ton; that if these rules be not so
properly regulated as to make this
relation, that your committee be au-
Ihorized in the name Of the associa-
1ntion to present such memorials to the
legislative bodies as may lead to a
h,-+ of bo