The sun., 1914-09-18

Details Of the plan by which the pro-
posed syndicate Is TO take over the dis
tress'' long contracts on the New York
Cotton Exchange on the basis OF cents
1t was reported yesterday on tho Cot
ton Exchange. are being worked out sat
lsfactorily. and Il is expected that a for
NAL announcement will be issued to-day
or at The latest by tomorrow. The
banking phases OF the problem furnished
the chief features under discussion yes
terday. and It Is thought that the finan-
cal end Of the problem will be adequately
met
The successful formation and operation
OF the syndicate would pave tho way for
an early opening OF tho Cotton Exchange
development which is strongly desired
by the South. In fact, one local firm
yesterday received letter which con-
cuded with the following sentence: !:
Meanwhile the South Is praying for
quick opening OF the exchanges" There
Is some irony In this brief statement In
view OF the general outcry against cot
ton exchanges until the present chaotic
situation demonstrated their necessity.
About the chief obstacle in the way
Of the resumption of business. aside from
the local contract tangle is presented by
the new law for the regulation of cotton
contract trading, formerly known ds the
Lever bill. a committee from the New
York Cotton Exchange Is going to Wash
.ngton to-day to confer with officials of
the Department of Agriculture Cotton
Exchange members are doing everything
IN their power to aid the department. but
the Federal officials having the matter In
charge have several times admitted the
difficulties in putting into practice the
vaguely expressed purposes OF the statute.
quite number OF letters have been
received recently from the South express
ing the view that the legislative forces
behind the bill made great mistake
in forcing Its enactment at a time when
the working out of It's details merely
added confusion to the already chaotic
situation.
Nothing further has developed regard
ing the suggestion to dispense with the
services OF the inspection bureau. although
sentiment Is generally to the effect that
such step would he advisable. In view
OF tho fact that tho functions of the
bureau have lapsed. and that II might
be wise to discontinue Its services en-
tircy and adopt whatever substitute may
be offered under the new law for the
regulation of trading in cotton. The
blllN Summing blO'h ~ lub ptSSlDllllN OF
a hiatus. which would leave a period after
the reopenlng OF the exchange when 1t
would be impossible to deliver cotton.
Another evidence OF the confusion
throughout tho cotton trade came up yes
ttrday and It probably could he multi
Piled many times If the facts should be-
come public. An eastern belt spinner
bought several thousand bales of cotton
under the call system based on Deem
Der. A short time ago. when cotton had
its slump below cents in certain ,por-
tions OF the South. he notified the shipper
from whom he had made his purchase
that he wished to fix the price on his for
ward contracts The shipper refused on
the ground that there was no future mar
ket through the medium OF which such
a transaction could he made.
The spinner Insisted on fixing the price
on his cotton and offered TO take spot
cotton on the basis OF market prices then
ruling. This tho shipper also refused, and
the spinner now takes the view that his
contract with the shipper has been can
cellcd through the failure OF the latter
TO meet any OF the demands made upon
him. II this situation Is at all general
It would be likely 10 affect a great many
forward sales made before the outbreak
OF the war.
The Giles report issued yesterday morn
Ing made the condition OF the growing
crop 100, compared with '9,9 on Au-
gust % and 81 on September 10 last
year This Is a deterioration OF 3.3 points
during the two weeks between August %
and September II and Is less than tho
natural decline in the crop during the
period of Its late development, In her
report Miss Giles said II am receiving
numerous inquiries from correspondents
regarding the reopening OF our exchange
II seems that new tight has dawned
npon the average cotton planter IN his
dilemma over the ridlculously low and
unsettled prices OF his product"