The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-05
NORTH SEA CLOSING
A BLOW TO COTTON
Mined Areas Send Marine In
surance Rates to Prohibit
tive Figures.
BALLOT PRICE rs REDUCED

BY far the most important development
relating 10 cotton T. the closing Of the
North Sea 10 merchant vessels except I'M
der certain conditions This al least was
the opinion cXpr, ,s'd yeste .day by several
leading members O: me New York COTTON
EXchango. While the RriA-n Admiralty
does no; forbid access L. the Nortn Sea
by merchant vessels It d'scllims all re-
sponslbihty for loss II ship pa unlcss these
are piloted through the British mine AREA
Even then the craft must run the gartlet
OF German mines. and for this no pllotsge
l. available.
1t Is unfortunate for those IN IN. cotton
business that this development should
have arisen Just now. II was assumed
that exports 20 Germany would be
promptly resumed, and in fact some very
heavy purchases had been made for Ger
man account II was assumed that exports
10 Germany and Austria for tho remainder
OF the season would run up 10 5000 bales
a month. Although the 5000 bales al
lottei 20 Austria In this calculation may
20 forward II looks as II the shipments
70 Germany would he almost negligible
The chief difficulty appears to lie IN
getting insurance. The war insurance
rates arc not considered prohibit!ve, az
the policies would cover only the overt
acts OF beliigerents and are confined 10
capture, seizure and detention As cot
ton IL not Contrahand Il e not likely that
any sea Power would openly interfe re
with shipments. The marine Insurance risk.
however Is practically out OF tho gu st!on.
Only the most nrohibltivo rate would he
forthcoming, as the marine insurance
policy would have to provide against
losses by mines and the recent statement
by the British Admiralty would deter any
shippers or owners from vcnturinE over
the mined districts
while Germanys supply OF American
cotton has been heavily drawn upon since
tho war began Il is not believed that
there Is any real scarcity 81 cotton in the
empire. Several months before the We r
began Il IL known that German spiuners
contracted FOR enormous quantities of
East Indian cotton, estimated to be sum
cent for requirements for at least q year
and half II In not known what prompted
this heavy buying Indian cotton NJ that
time was not cheap. but Il was at very
attractive basis compared with the prices
then prevailing for American cotton. This
may have been the incentive. on the
other hand there may have been other
reasons
Only a moderate part of these enormous
shipments arrived before tho outbreak OF
much actually did reach Germany before
the declaration Of hostilltles The bulk
OF the purchases, however. Is represented
chiefly by contracts
There were no important developm~n It's
In the local contract situation yesterday
aside from n decision by the conference
committee to permit further balloting on
the basis OF ISL FOR December, This odd
price was established In order that there
might be no official authorization OF hqui-
dation below the basis imposed by the
corporation syndicate plan, which calls for
sales above the level OF 75O. Prices on
the "curb' ranged around 1853, with some
sales at 753.
Southern snot markets yesterday were
u 10 Il higher. Prices in the Texas In
terror were around $40, or about y up
from tho recent low level Exports yes
terday we're 1874 bales