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

advantageous 10 spin. Here a moments
consideration will show tina, there is
a Fundamental difference between the
position of the spinner and that of the
cotton merchant Indeed, this differ
ence is such that the two positions are
economically irreconc'lablct 1t is the
business and the duty OF the cotton
merchant 10 merchandise any and
every kind OF cotton that is produced
He cannot pick and choose.
He cannot leave i'll the hands of the
producer those kinds OF cotton which
are less advantageous to the spinner,
combining his purchases TO the kinds
for which there is an instant and uni
versal demand. The producer would
not tolerate such procedure. even
if the merchant desired TO follow IL.
In the normal course OF his business
the merchant must acquire great guam
titles OF cotton which are slow and
difficult of sale. and the distribution
OF which must be extended over con-
siderable periods of time
All his trading as merchant mus.
he governed by this fact. and any
arrangement OF the rules controlling
his trading which fails TO take cogni-
zance OF this fact is, from his point
Of view. fatally defective. II is econo-
mically impossible for him TO trade
one the one side with producers who
insist on selling him all the cotton
they raise. or none; and. on the other.
with buyers OF contracts for cotton
in gross who can compel him to de-
liver them only the Immediately de-
sirable portion Of his purchases
Knowing as he does that ultimately
all kinds Of cotton are needed and
VIII be sold. he sees no reason for
providing a certain class OF buyers OF
eaton with ADVANTAGES which he him
seld does not enjoy when he buys him
self As a merchant he cannot in rea-
son he expected To do any such thing
III, then. cotton exchanges are pri-
marily associations OF cotton mer-
chants, the conten,.on of splnners on
TINS point falls To the ground by rea.
son Of lis economic impossibility
Variation In Price.
We come now 10 the complaint that
the occasional variation OF the price OF
the bnsis middling" contract upon
The exchanges from the current price
OF middlins cotton produces unfortu-
nat results in the spinners business,
and that the exchanges are at fault
In their rules, II those rules make the
variation possible This complaint tin
spinner Is apt 10 emphasize by saying
mat II is the custom Of the cotton
goods trade 10 base the price OF CON
tracts for goods upon the quotations
OF the exchanges for contracts for cot
ton' and that when the price of tho
latter falls away from that of mid
ing he labors under grea, and unjust
Disadvantages, Perhaps also he n,ds
mat when he has "hedged" a contract
lof goods calling for the use OF mid
hiins cotton or better by purchasing
cotton contracts on the exchanges II
Is not right that he should nnd tho
parity between the price Of the cotton
ne needs and the cotton contracts he
ms bought disturbed to his loss. I
ms last allegation need not he
taken 100 seriously for ii was always
possible for the spinner to hedge"
ms goods contract hy means of a con.
tract made With some cotton merchant
! i"r specific grades of cotton Neitber
| IS II easy 70 understand how there can
| ne Just cause for complaint. If ,he
| spinner has based his own operations
IN goods upon the happenings in n
collateral market, which he is not in
position to understand thorouyh1v
! even If that collateral market is nc