The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-23
OUTLOOK BRIGHTER
IN COTTON CIRCLES
Prospects for an Early Adjust
ment Of the Tangle in
Contracts.
SETTLING WITH LIVERPOOL
Basis on Which Straddles Will
Be Liquidated Not Yet
Decided.

Sentiment In the best informed Cot
ton Exchange circles yesterday was de-
cidedly more optimistic than at any time
since the exchange was closed on July
81. Members who have been in touch
with the progress Of liquidation and the
steps that are being taken to unravei the
| tangle feel that there Ia good warrant for
believing that the whole situation will be
adjusted much earlier than was believed
possible even week ago.
In order to obtain a clear idea OF how
the intricate problems concerning the cot
ton trade are being solved IL would be
necessary to detail the various steps taken
thus far and the reasons why they were
taken. When the exchange was closed on
the last day OF July there was hope
less confusion. due to the multicIplicity Of
contracts, the complication of the Pel
failure and the absolute paralysis of nor
NAL trade activities
The officials OF the exchange realized
quite clearly that the first essential step
was the liquidation Of the local market
position. This was carried on for a day
or so on the initiative of the members
themselves. Later came suggestions from
the voluntary committee, which was ably
led by Edward NJ. Weld. Many OF these
suggestions were not understood at the
start as 1t seemed that they failed to
snect the ultimate position. They did,
however. result In the thorough reduction
in the outstanding interest. thus enabling
the various firms to ring out contracts and
10 release enormous sums in margins. Tho
tranHer OF contracts into December has
resulted In a drastic diminution Of the
outstanding interest and a further increase
In released margins.
This clearing up OF the local situation
has at last revealed the New York posi-
ton 70 be plainly net long. The stua-
ton would not be encouraging II Il were
not for the fact that Liverpool holds the
bulk OF the short interest. The officials
or the exchange have been working on
plans bringing about the covering of this
short Interest and while the details are
guarded with secrecy as well as the ex-
tent OF the net interest. those members
or the exchange who know how matters
stand feel safe in saying that arrange
ments viii bo made whereby Liverpool
VIII cover her shorts In this market and
on basis which will enable the longs to
get out without yielding up pound of
flesh.
These long contracts will be liquIdated
on an agreed difference with Liverpool
and the price of spot cotton In the South
will have nothing TO do with the figures
II would not he surprising IL matters
we're adjusted 60 that the exchange would
open In few weeks instead OF a few
months.
One encouraging bit OF news yesterday
was contained In an unofficial statement
To the effect that middllng spot cotton
In Bremen had advanced 3s Liverpool
points, or nearly 81 per bale since the
war started. This will make the Liverpool
stock worth more. as English importations
have practically ceased The Bremen
stock Is now estimated at about 100000
bales OF all kinds OF cotton.
Spot cotton in the South is little
firmer than II was and there seems to
be a strong disposition b refrain from
selling on the basis OF si5 cents