The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-01
Big PROBLEM UP TO
COTTON CONFEREES
80 Decision Made as to Dis
position Of Straddle
With Liverpool.
BF\RISH BUREAU REPORT
Tiourrs Of % Indicate Crop
%: - Close - Record
Proportions.
BE\RISH BUREAU REPORT

IT, question uppermost In the minds
q, every one iu cotton circles yesterday
- nr outcome OF the conference be.
,-y.i ,s. rep-, sentatives OF the various
.yh,r..s The condition report OF the
.-.r reporting bureau at Washington
.,.-I r.' significance beside this topic
...ro.'u.. .ud.ug the fact that the figures
No.. almost uuprccedentedly besrish and
,sJ..tf.I A crop " record proportions.
The .prforc,s held informal sessions
Throughout the day. but no definite con-
,.. ... yer, reached, nor are they likely
TO o. cached until the whole situation
u.. boon ,lu,assed from every angle for
tau nr 'nr'c days.
Tie Liverpool representatives are w.
3 N....rtv and J. Arthur Smith.
ra... -,r-.S.ui.ug New York are y. NJ.
Nod E e. cairns and Henry Schaefer
\N orleans i- represented by |. II.
i.nr,. John +. Clark and Maurice
s;,..
IT,. ,ruN 81 the situation rcvolvcs on
H. saIlle interest between New York
s.I I.t..paNl This Is estimated at APP
r.,>.ulf.N 300. 600 bales. II has been
.grr,s,,i hy those unfamiliar with the
,.,r.,'o machinery " modern markets
tb,t. ,.. s,rtddlr should be closed out on
,t4 basis ~ closing prices on July 81.
TIL, is 1000, likely To appeal to III" mem
hers lt 90. conference. who are all men
- UI. experience in the cotton trade
some consideration must be given to
'rr nature ~ the transaction and the
turpus. for which 1t was initiated Liv-
erf .. undoubtedly would resist such a
,uggest 900 IS utterly unbuslnesslike and
VIII fr. nnil agreement may show a
compromise there will be no EFFORT to
tai. h.ghhsUdcd measures.
r.. Liverpool contention X a. follows:
-he s'radile transaction resulting IN pur-
,s4scs Iu Liverpool and sales In New
Work arises from the necessity OF making
hedge sales against Liverpool importa-
ton, o. cotton when this cotton was
bought. 10Y instance, sales were made In
Liverpool. Here another class OF opera.
tors. figuring that Liverpool ultimately
would be al a greater premium over New
York than the one existing at that time
took the hedge sales by buying In Liver
rool and against these purchases made
sales IN New York. In this way the
Liverpool stock was indirectly hedged by
sales IN New York.
II naturally follows. therefore, that
u this siradle transaction is closed
somebody must be left long OF
cotton either In New York or
In Liverpool as futures or long oi
sro,s IN Liverpool II. for instance the
stradde transaction between New York
and Liverpool were to he wiped out b,
some arbitrary dictum certain operators
would hold cotton in Liverpool without
any hedge sale against IL.
|, seems quite likely that the settlement
will be OF a compromise nature. Cottor
IN the South is selling on a basis where il
could he landed in Liverpool at Sia OF
cents Taking the New York prices a
1915 Tor the close at the end OF July an'
si2 cents now In the South II seems quit
likely that a compromise Will be reached
Somewhere around 81. cents. Liverpoo
needs money from New York. New Yorl
has this money and knows that Liverpool
needs IL II however. Liverpool asks 70
100 much In the way OF settlement SOM
firms might he unable to make re
Spouse 10 the call and in this way les
would be obtained than II an amicabl
Arrangement We're to be effected. Thi
view OF the situation undoubtedly will
result IN modifying Liverpool's d mands
II is Interesting TO note that Alexandra
took arbitrary action and closed out al
trades with Liverpool without regard q
consequences. This action will not stan'
AS the British Government has refused 4
atty Il and consequently all trades ar
restored AS OF the date the Alexandri
Cotton Exchange closed.
The Government report yesterda
aroused but mild interest II gave tn
condition a. IS against I6i at the en-
OF July and compares with $50 las
wear and ten year average Of 1874. Th
gain ~ Ia points for August is withou
precedent except for the season OF 1870;
The report If taken az indicating a GRO
"f more than 1000 900 bales and posi- bl
100000 bales. At the same time II
thought that the price will be so low tina
hundreds Of thousands OF bales will b
eft In the fields and ploughed under neS
spring simply because the cotton woul
be OF such low grade that 1t would nc
pay 10 pick II.