The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1914-11-03
COTTON EXCHANGES
TO REOPEN NOV. IS
New York and Liverpool to
Open simultaneously.
IMPORTANT CONFERENCE.
Worked Out AT Conference
of Experts.

Washington, Oct. 31,-An outlet
for the tied-up cotton markets Of
this country was worked out today,
when at a conference of federal re-
serve and private bankers, together
with Sir George Parish and Basil b.
Blackett, representing the British
treasury, it was agreed simultan-
eously to open, November 16, the
New York and Liverpool cotton eX-
changes.
Sir George spoke authoritativsly
he said, for his government as to
the Liverpool exchange.
The next important step TO be
taken by the bankers will be to
agree next week upon a system OF
exchange Of nine months certificates
that may be used by American mer-
chants in lieu of Turing over S4Oo,-
100000 or more of gold to England
To strike the balance OF trade.
The day decided upon for opening
the New York an 4 Liverpool cotton
exchanges is that already Axei 0y
Secretary of the Treasury McAdoo
TO. opening the fei,-al reserve sys-
tenn
In connection with the reopening
of the New York cotton exchange it
was learned also that group of New
York bankers has agreed to under
write a loan of about 100000 to
carry cotton brokers through the
storm that will break on them when
from disaster.
Hundreds of brokers on both the
Liverpool and New York exchanges
had many contracts known to the
profession as spread and straddle"
contracts, on their hands when the
exchanges were closed. These cor
tracts had been entered into at pre-
vailing prices, which were much
higher than anything that could be
obtained now. Many brokers would
be ruined if they were called on to
make good without aid from banks.
The likelihood of disaster to many
brokers was one of the principal OBJ
stacles to be overcome in arranging
for the reopening of the exchanges,
and 1t was not provided for until the
New York bankers stepped forward
The S1O,OOO,00O will be loaned to
the brokers and repaid by assess
ments against the commissions that
they make after business is resumed
on the exchange.
A similar plan for the assistance
OF the brokers on the Liverpool eX-
change is being worked out. Sir
George Parish informed conferees.
Treasury department officials are
optimistic that the new plan will
work out with entire success and
that it will re-establish the cotton
industry. When the New York eX-
change is opened, not only will the
federal reserve banks and the new
federal reserve system be in full op-
GRAFTON, but the $l35, 900, 600 cotton
pool will be largely distributed and
conditions generally will be as ia
vorable as extensive preparations
can make them for a resumption of
cotton trading.
The effect on the disposal of the
South's great cotton crop is expect
ed to be marked The English mills
will probably buy in large quantities
at the favorable prices and vast
amount of money will go into the
speculative market.
The theory is that cotton at
cents, which will be established as
the rock bottom price by the opera
ton OF the big cotton pool, will ap-
peal TO the public as a good buy for
surplus money and that tremen.
dous quantity will be disposed of in
this way.
w. G. p. Harding, member of the
federal reserve board and the expert
In general charge of cotton relief
made this statement after the con-
ference today:
satisfactory progress is being
made on subscriptions to the cotton
loan fund. The committee are ac-
lively at work in the various clear
ing house cities to which the matter
has been referred.
st. Louis reports that the fulJ
amount allotted to that city, s7,5O0.-
600, has been raised. and the sub.
scribers are ready for the under
writing contract"