The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-11
WILL CURB COTTON
CORNERS IN FUTURE
Effect Of Limiting Trading in
Current Months to Twcn-
ty-five Days.
SOUTHERN PRICES LOWER

At n meeting held yesterday morning
the board OF managers OF the Cotton
Exchange approved the amendments to
the rules NJ prepared by the special com
mlttee and tho rules were ordered posted
for ten days, when they win become part
of the contract system OF the exchange
without further action. The bylaws OF
course must be submitted to the exchange
body and formally accepted before they
become operative.
The most important change was the
one limiting the trading In current months
TO twenty-five days. This is because Ave
days notice OF delivery is required under
the new cotton law. and no provision II
made for short" notices or notices re-
quiring less than the customary time,
While some hardships may result from
the operation of this new rule conform
ance to its provisions will be only
matter OF adjustment. On the other hand
the benefits that may result could easily
prove OF considerable magnitude. In ono
sense the limiting OF the trading month
to twenty-five days offers reasonable pro-
lection against an artificial corner. No
rule or set of rules Of course could pre-
vent "A squeeze II legitimate conditions
justified it There have been instances,
however. in which skilled market tactics
judiciously pursued have brought about
stampedes on the closing days of the fun
month. one case in point was furnished
by n corner in January about dozen
years ago No suggestion of the acute
position leaked out until the last minute
and the shorts had no titge to get cotton
here for delivery and tSus bid the price
up to the skies In their scramble TO
cover.
with trading terminating N,e dave be-
fore the end Of tho month. during which
period the shorts have chance 20 bring
cotton here in conformance to notices
previously given. the most acute situation
could be averted 10y shipments to New
York from New England mill points and
other adjacent textile districts II IS
believed that the adoption Of the new rule
effectually kills of the dreaded corner
OF manipulative origin. In the case or
genuine scarcity of cotton. of course. the
actual situation will be the determining
factor
II Is stated that the new rate Of com
mission. $50 for the round turn OF buying
and selling will apply to both new and Old
contracts There was some sentiment li.
favor Of making the higher commissions
apply only 20 the new contracts, or those
traded in under the amended rules and
bylaws II was believed, however. that
this would tend to encourage operations
in old contracts at time when II Ia con-
sIdered desirable 10 retire these as fast
"a possible.
Southern spot prices are still declining
Most markets reported declines ranging
from - to IA. In the interior Of Texas
the farmers nre selling cotton on the basis
of about 6L cents The holding move
ment IA strong, but weak cotton con-
tlnues 90 come out. As an instance OF
the amount OF cotton being held Il might
he pointed out that Fredericksburg. Tex
has shipped out only hoo bales. while
the gins In that territory have turned
| out 5000 bales.
The Manufacturers Record OF Bait
more says: Tho Mdnufdcturc1y Record
does not at all minimize the cotton situa-
| ton, but II does not want TO see the cotton
| growers Of the South educated In the be
| lief that they must be taken care OF by
! the public instead of 10 the very best of
| their ability working out their own prob
! lem and largely caring for themselves To
do this they must learn Ia live at home
/ and not depend on the West for food
| stuffs The planters Ot the South, with
| the SPLENDID crops and good prices Of five
/ or six years. ought 10 have paid off all
! obligations and made their years crop
without borrowing 80 heavily IN advance
/ on cotton SO long as the all cotton sys-
/ TEN exists, and nothing hut hard expert
/ encr will XIII IL. 80 long will southern cot
/ ton growers who follow il always wear a
: rope around their necks for the purpose of
/ committing business suicide on any appro-
. pirate occasion. Fortunately many thou
sands OF cotton growers are strong, indie
, pendent men who need no advice and no
! financial assistance They have 70 suffer
/ for the incompetency and mistakes of
| others"