The sun., 1914-09-12
PRESSURE TO OPEN
COTTON EXCHANGE
Producers and Spinners Begin
ming TO Realize Value Of
Contract Markets.
SOUTHERN SPOTS HIGHER
Scramble Of Shippers Who Sold
Short the Chief Cause
of Firmness.

'rhore was much pressure on officfn.s
OF tho Cotton Exchange yesterday TO In
due them to bring about an carly open-
ing. II has been the policy of the board
of managers to resist efforts OF this sort
until tho liquidation OF outstanding con-
tracts was nearly enough completed to
leave no burdensome remnant OF old
commitments which might cause an ulti
mate tangie. Plans are under considcra-
ton that will give supplementary
sistance to the suggestions OF the oon-
ference committed. and Il is hoped that
tho New Yorlt-Livcrpool straddle will be
adjusted inside OF n month Further than
this there is no disposition TO glvo a-y
him ae 10 the probable date OF resump-
bon OF business.
Strange 20 say. the pressure 20 resume
trading In contracts comes from sections
which hitherto have been regarded as eN-
trerncly hostile to the Cotton Exchange
Throughout tho South thcro has been
quite n clamor 20 have the exchange
opened in order that "a uniform pricc for
cotton may he ESTABLISHED. New England
also has scnt appeals and suggestions
prompted by the difficulty which spnners
cotton and also in obtaining n basis for
the sale or cotton waste
Appreciation in south.
A iettcr from an Alabama corrapcnd-
ent was quoted yesterday 40 an evidence
OF tho fact that the South Is beginning
AZ last 20 realize the economic
value Of the exchange The letter IN
part said
The decentralization brought about BY
tho New York exchange being indefinitely
closed will very probably cause much
cotton to be marketed "a. from 3 to 3
cents pound under the cost OF pro
duction. This condition will cause re-
duction in acreage 70 tremendous that
II will very probably bring about a re-
ductlon by the fall Of 1918, causing the
actual cotton 10 sell at prices no high
that many mills will he unable to con-
tinue operation.
There Is no incentive for the Southern
farmer to plant cotton when II is SELL
ing under the cost OF production. while
there Ia every incentive 20 plant the
abandoned cotton acreage in grain and
other foodstufYs. II the exchange can
be opened II will absorb millions OF bales
during the trading months OF 1915
through investors who know that cot
ton boush, under the cost OF production
Is safer than Government bonds. 9.
I'm Justice 10 the situation 81 a whole
publ,c sentiment should force an adjust
ment OF the present difficulties. barring
the reopenng OF the exchange. and give
tho American people an opportunity 10
absorb Its own cotton Drop for Invest :
ment which they are amply able and
willing IN do n given the chance
susxests Two Prices.
A Providence, r. J.. man made the
following suggestion: Mako two prices
for the December option. tho old contracts
and the new. and not allow any traolng
In the old ones under $50 cents TINS
would permlt those 70 continue 10 closo
nil fast DOaFlDlg.
and ~ by the end of December the Old
contracts are not closed out have them
ali transferred TO December. 1915, and
have two prices for that month also.
II WAS reported that the ballot yester-
dav resulted in the liquidation or 200
of ,oOe bales that have already been
id,,idated under the plan proposed ny
the conference committee.
Co,tou in the south is still very nm.
and many shippers are rejecting All IN.
nulrie~ and bids for high grades untl
the present scramble of spot SHORTS mas
s,Ib.ided and taken the edge on the buy-
ing movement sales have been made TO
New England spinncrs at what appeared
10 he r1liDously low prices. and no doubt
there has been a strong element or specu-
lation In theee transactions. IL the South
recover- It's rerve and In aided further ny
a favorable turn In the European ""i
nsw. quite a number Of Arms who have
sold ahead at low prices, in the expecta-
ton of covering at e. profit. are likely 70
he badly hurt. The full weight OF the
movement has not yet been felt and spot
ahorts consequently are hoping for
chance to cover.
The southern press 10 giving consider
able p,,blinity to tho Buy Bale move
ment which appears TO be spreading over
the entire South. Tho quantity OF cotton
that would bs taken or the market by
this process, however, would hare y ne a
factor In calculations.