The sun., 1914-08-25
ORDER COMING OUT
OF CHAOS IN COTTON
All Branches Of the Trade Coop
Grating to Hasten Resump-
ton of Business.
RIGID LIVERPOOL ACTION
Summary Measures Alone Pre-
vented Further Demoral-
izatiOn Of Trade.

There was q general feeling in Cotton
Exchange circles yesterday that the pres
ent week would be OF extreme importance
In its developments bearing on the solu-
tion Of tho vexed problems OF the trade.
The cotton conference In Washington 10
expected to evolve some plan for the
financing and marketing OF the crop. Sec
retary McAdoo's suggestion that emer-
gency currency to the extent Of $3.50, ,000.-
900 might he available for loans on
100000 bales on the basis OF about $40
per bale would relieve the strain to n
certain extent as this would take care
of an amount of cotton equivalent to the
normal consumption of France, Ger
many and Austria
Ii Ia also believed that some big steps
forward will be made after the local ex-
change ofIcltls get together with the COM
mttee which sailed from Liverpool on
Saturday. Even II fundamental condi-
tons should improve there would still
remain the troublesome contract prob
lem with all It's technical difficulties. II
arrangements can be made whereby Lv-
erpool will liauidate Its huge stradde In
tercst. estimated At 100000 bales, a GOOD
deal Of long cotton now hold 10 the local
market would be removed a. q menace
to the contract situation
great deal Of news from Liverpool
was r~oeived yesterday through tho me
dunn Of Bngiish newspapers market let
ters and Amsrioan shippers returning
from Europe When all the details Of
the Generalization in Liverpool on July
81 wore thrsnhed out the members Of the
New York Cotton Exchange were inclined
to congratulate themselves over the man.
ner In which they had weathercd the
storm. Liverpool evidently took more
drastic measures than were adopted by
the local Exchange On account OF the
broad charter OF the Liverpool Cotton
Association and the assumption that any
radical step by association officials could
be ratified later by act OF I'arliament
here was less timidity about drastic
actton.
In tho FIRST place all credits With Ger
an and Austrian clients were revoked
and all contr acts ordered closed All con-
Tracts OF the present crop and that OF 1915
were transferred into the January-Febru-
ary position at specified differences, Ths
action was taken without consulting either
members or clients.
The association also Is reported 10 have
taken over the entire Liverpool stock OF
American cotton. amounting to more than
600 600 bales. and these holdings were
distributed pro rata among the various
firms for financing. No spot sales could
be made until the price had been passed
upon by committee and no fresh I'M
portations are to be made from America
until the present stock has been virtually
disposed Of. English spfnners therefore
must pay reasonable prices for their sup
plies In order to protect the merchants or
they can get no cotton to spin.
Such vigorous measures undoubtedly
were all that saved the situation and the
position OF the English market for this
reason Is regarded as fairly sound. The
panicky scare IL over and as soon IA the
straddies between New York and Liver
pool are closed out the English operators
will draw down considerable money from
this side, Considering the frlghtful tangle
resulting from the war and demoralized
business conditions the cotton trade ap-
pears TO he working into daylight in very
satisfactory shape.
Cotton is beginning TO pile up in the
South owing to the practical withdrawal
ot spinners from the market. Manufac-
turers who bought cotton at the low price
OF iOh cents a little more than a week
ago are Inclined to feel uncomfortable
now that competitors are able to buy on
a Q cent basis Crop reports from nearly
all sections are favorable and Il looks as
II Texas might come forward with
production considerably in excess OF last
year