The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1914-11-07
.REOPEN|NC Of
THE EXCHANGES

That class Of our people who are
accustomed to assail the stock and
commodity exchanges as the sources
OF all evil are getting lesson which
ought TO be sufficient for the present
generation. These attacks have been
especially viru,ent at the South,
whe e cotton exchange baiting has
been about the best vote getter there
was.
And, now that the cotton exchang.
es are closed, every cotton grower at
the south is fervently praying that
they may reopen quick. The South
must sell cotton and nobody will buy
except at ruinous prices as cold
blooded speculation or for more than
1t is worth as an e,emosynary tran
SaCt,on. And this condition pre-.
walls because there is no open mar
ket such as the exchange have hith
erto furnished both for spot and fu
lures.
The ultimate market for cotton is,
of course, with the mills for manu-
facture. But the mills manufac-
ture very largely on contract for flu.
ture delivery. AS the profit on cheap
/ cotton goods which form the bulk OF
the trade is but a quarter Of a cent
or less per yard any material fluctu.
alton in the price. OF cotton affects
prices. Spinners are now buying
very cautiously because they do not
know what the price of cotton In to
be and cannot protect themselves II
they buy by hedging with future
contract bought on the exchanges.
In spite Of the openings for the sale
Of cotton goods neither American or
immediate imperative requirements.
There are at present in this coun.
try representatives of the British gov.
eminent to confer with our own gov.
eminent and the great bankers OF
the country with regard to reopening
the cotton and stock exchanges.
The difficulty with the cotton ex.
change is that when the war broke
out there we're outstanding in the or
binary course of business large vol
umes OF future contracts at probably
around IL cents. Some cotton has
been sold as low as 6 cents a good
deal at Z and IL cents, and II any
one were now to f,x price 1t would
not be in excess of 8 cents. To keep
the exchange open with settlements
on any such basis means. widespread
disaster to brokers, manufacturers,
merchants and banks which must
have spread into many other lines
of industry. .t...
Since the exchanges have been
closed international committees have
been endeavoring to effect settle.
ments OF all outstanding contracts in
this country and Great Britain on
basis which would so distribute the
losses that none would be ruined.
Until that was accomplished TO re
open the exchanges was to precipi.
tate a panic.
That Is said to be now SC nearly
accomplished that early reopening OF
the cotton exchanges is expected,
which will be promptly followed nv
activity in cotton manufacture both
in this and other countries.
Similar conditions prevailed in the
stock market, which has much wider
ramifications, Settlements, however
have been going on in respect to
stock contracts and the situation Is
greatly improved. The markets are
being tested more ana more by su
pervised transactions and b. trading
ION the curb" by traders not mem
bers of the exchange and therefore
not subject to its discipline. Thus far
the outsiders have worked mute har.
haoniously with the exchanges. but 1t
seems improbable that open trading
outside the exchanges can te pre-
vented much longer, and while sucn
trading, not being official, can es
tablish no prices, 1t is felt that on
all accounts, II there must be trad
inS, II had better be on the eXch9ng.
es.
II Is believed that brokers and
stock dealers are now about ready 10