The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-05

Exchange IS indefinitely CLOSED members
we're actively engaged yesterday In Iidui-
dating outstanding contracts and reducing
commitments This precaution has been
taken not only hero but In New Orleans
and Liverpool, and every effort Is being
made 10 fore5tall possible excitement and
CONFUSION when the markets reopen for
business
Clients all over tho country have been
urged, both by wire and mall to close
out existing contracts. with the suCEes-
ton that they name the price at which
they would he willing TO liquidsto their
long or short commitments The quota
tons received from customers are sub
nittod IN writing by brokers to a special
committee appointed by the Cotton EN-
change 20 facilta1. liquidation This
committee " acting In the capacity Of a
clearing house on old transactions. and
now trades are not accepted.
Liverpool IL adopting the same pre-
cau'iuuary measures. and Judging 10y tho
volume OF Old contracts that have passed
ont ~ existence, every exchange 'r che
world Will he moro nearly EGuidat"J han
a. any time In the history OF ,.lyc
future trading
Tho following cable from ~ L. kp,-
hurgh vcc-prssidcut of tho l.,vcrpoo,
Cotton association. 90 the Nov Yorl, COT
ton Exchange sets forth tho actiun that
has been taken in the English market D..
Following resolutions passed y" The
board Of directors to-day; 'Cuder tu"
present exceptional circumetaucee the
board are of the opinion that all August
contracts outstanding should h. settled
on the basis of - points over January
February for the general safety of t'"
market. They have. therefore. de ~ 4
to ask al meinb' rs 90 do this ~ tine C,u-
eral interest Their" will be- no trading
In August deliveries during tnr month.
and no tenders will he allowed pif-
forcnc.s betwccs January February and
other months Will I've adjusted ny a sps-
cisl committee. All cotton sold on cali
on August alone, the price OF which IS
not fixed. will become sale on call on
.Tanuary-F"bruary Mt ~ polut9 incrcas q
basis Pleas" cable this resolution TO
the Hnvre and Bremen cotton ~.
changes"
Although me cotton contract markets
are ho'r.g stripped down 20 a war TIME"
basis tho outlook for actual cotton could
not be clOudcd IN greater uncertainty.
Chaos ig about the only term that de
sr~lhea the situation II r. expected that
IL, present crop viii run somewhcr' hr-
tween "a. oOO. oO0 ami 15.0n00oo 'alcs \,
such a crisis AZ this q million bales or SO
would probably be without influence In
determining values Under ordinary cir
cumstances and with only faif 'rade
thorughout the world. Europe probably
would have taken In excess OF $500 1000
bales out Of this wears production This
cotton would have been proportional
about as follows: Great Britain, 3.75o,-
O0o Italy, 100000: Spain, 100000 Eel
gum. 100000; Russia 100000; Austria
100. 900. with scattered amounts TO other
European countries
The movement of tho crop |, ~ hand
ana although cotton A. not contrahand Of
war the high marine rates, the dlficulty
ard uncertainty over the payment for
cotton. together with other war con-
tingencies. will shut or export demand
for the present
II was said hero YESTERDAY that nv n
crushing naval victory tho British fleet
might cripple the German navy So that
a fair cyport business could be conducted
with Grca. Britain. Franco, Italy, Spain
and Belgium This would furnish mn out
let for approximately 100000 bales or
cotton
No ono II expecting an carly and de
cided naval engagement. however. Pend
ing that the export business IN cotton must
halt All sorts OF plans are being sug-
gested and devised some ~ which hear
the usual marks Of haphazard schemes.
one idea appears "a he spreading and
that liz tho need Of nm immediate and per
inanent extension Of the Ameican mer-
chant marine. With non-contrah nd
cargo. such "a cotton. vessels floating
the Stars and Stripes could traverse the
seas unmolested with consequent ems
Ing OF the money strain In this country.
The advocates Of an adequate American
merchant marine feel fhat the Europea n
war has brought home this suggestion to
tho minds ~ the American people.
There II no doubt that the South Ia
alive 20 the present situation, for AT a con-
ference OF the Southern Senators and mem
bers OF Congress In Washington on Monday
night Il was resolved 10 appoint COM
mittee OF twelve SenntorP and Represcn-
tativcs from zach cf the Southern cotton
growing States To devise some methods
az meeting the present emergency. The
South has contented itself with tho idea
that the era Of cent cotton was gone
forever The present crisis I'm Firrne has
once moro brought this raunt spectre be-
fore the eyes OF tho Southern cotton
grower.
There 4. a possibility that n valorization
scheme Will be adopted similar to that un-
dertaken by Brazil II r. suggested that
only a portion of tho crop would have 10
be taIoen OF the market and this only tenn
porarily. II b.o0O.0 900 bales. FOR instance.
could he taken care OF by vnlorlzat,on
plan, II IL thought that with holding by
individual planters and merchants to-
Eether with increased buying by Amerl-
can. Canadian and Japanese spinners. the
crisis could he passed IN safety. On the
Cotton Exchange II was rumoreh that II n
valorlzatlon plan should be adopted the
price would be fXed at i2 cents, II Is
doubtful. however, n the price would be
moro than 10 cents but this would be
sufficient 70 afford relief and would deter
venturesome bears from aggressive opera
tions
While me United States Government IN
IS attitude toward Brazil Indicated rs
opposition TO valoriDation in principle. Il
IL pointed out that tho present emergency
Is unprecedented and brought about, no,
BY the fault Of the Southern planter IN
growing too much cotton, but by an ex-
traordinary and arpsl'ngly sudden cur
| tailment OF demand.
The suggestion to give tho Bank OF