The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-14
SUGAR MEN PLAN A
Big FUTURE MARKET
Would Broaden Trading to
Rank With That in Other
Commodities.
WAREHOUSE IN NEW YORK
Big Opportunity Seen for Ar
rangement Similar to Duke
Cotton Idea.
WAREHOUSE IN NEW YORK

An extensive plan TO broaden the trad
ing market In raw sugar options. making
this commodity as popular q medium Of
general trading as wheat and other grains.
cotton. coffee or. in proportionate degree,
stocks. bonds and securities. Is on foot
among leading sugar men.
Sugar has had an exceedingly narrow
market and has appealed IN no sense
TO the general trader. Spectator or oper-
ator. Trading In futures has been con-
fined 90 the big refners. who number
only ten throughout the country; to the
sugar brokers and to planters. The late
II. q. Havemeyer discouraged wider
market for sugar trading when he was
at the height OF his power by refusing
to take contracts In sugar when the seller
was In any sense a specuiator. An effort
to start a sugar exchange was snufSed
out IN half days trial. There has
been none since
AS "A result the sugar market In this
country has become narrow and almost
a private affair among the few directly
interested in It. whereas in Europe sugar
IL commodity that attracts the rank and
file OF traders AS the grain and cotton
markets do here
There is a broad market for arbitrage
trade In the sugars of the world IN
London and other European centres through
sugar clearing houses and exchanges, on
which sugar from every quarter is traded
in. with price differences greatly mar
rowed AS compared with markets here.
y. ii. Lamborn. one of the leading
houses In raw sugars. has sent on; 10
the sugar trade and to- many brokerage
houses letter setting forth new ideas
for general trading IN raw sugar.
II IS held that In sugar. with n world
crop worth 81 600. 900. 600 a year, there il
large opportunity for operations that has
never been awaited of In this country.
\ significant factor in the new move
nent is the fact that the facilities Of tn.
London Produce Clearing House, Ltd
where sugar is traded in. have been
opened TO American trade through the
recent admission 20 membership OF tn.
A. H. Lamborn firm. The London body
Is close association. whose members
guarantee each other and their contracts
\. II. l.amborn is the first and the only
American house that has been admitted &c
membership.
The contract for dealing in sugar being
used by the Lamborn firm is one for tn.
actual delivery Of beet sugar on futur,
options. Europe is the centre OF the bee,
sugar industry. Trading In cane sugars
will be conducted in the new market
Margins on the London contracts will b.
about 10 per cent
Trading in beet sugar az tho presen,
time is said to be especially attractive AZ
the price IL practically At the cost OF pro.
dtct!on. making the risk Of loss Hight In
IN, prospect OF better prices
sugar traders say there is "a big on.
portunity IN tile sugar trade for plar
OF financing similar to that which jaime.
y. Duke and the National city Bank
are putting into operation IN cotton. Thi.
plan is for system Of standardized
storage warehouses. Whose receipts coulC
be utilized as first -iass commercial dis
counts under the Federal reserve system
Ordination OF such plan In the sugar
business is being discussed. There is n,
standard system OF warehouses FOR sugar
IN this country.