The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-22
FEELING IN COTTON
Is MORE CHEERFUL
Prospects Better for Liquidat-
ing Big Straddle With
Liverpool.
PLANS TO FINANCE CROP
Special Session Of Texas Legis-
lature to Enact a Law
for Warehouses.

There was a moro cheerful feeling on
the Cotton Exchange yesterday as member.
expressed the hope that the liquidation OF
the Liverpool straddle through the me-
dunn Of the committee sailing from Liver
pool to-day would he largely instrumental
In unravelllng the tangled contract situa-
ton.
Matters have now progressed about as
far as they can without Biverpool's as
sistance. With the transfer of all con-
tracts into December the commitments OF
American operators will have been re-
duced about as far as will he possible.
The ringing out OF trades has progressed
far enough to show that the American
trade holds a big net long interest. The
work of liquidation that has been going
on has been instrumental only in placing
longs and shorts against one another.
Against THE old long Interest. which II
would he impossible to reduce further
without making new contracts, Is the
short position held by Liverpool straddlers
against purchases in Liverpool Traders
who have old long contracts have only
two ways of liquldatiuG One Is by sell
ing out to fresh buyers and the other IL
by selling TO Liverpool shorts. II is he
licved that Liverpool straddlers are just
az anxious to clean up their commitments
as American longs, for the Liverpool mar
ket Is bound to show weakness in spot
markets. In order to margin these long
contracts In Liverpool money Is needed
from New York, and this cannot he oh
tained until the open commitments on the
short side are closed ont, II seems prob.
able that certain difference between the
two markets will be agreed upon, and
while this may he wider than normal no
objection would he made by the American
trade " Liverpool Ia not placed at an eN
cessive premium over New York.
Southern newspapers contain numerous
references to the agitation in favor ot
working out some method for handling the
crop. The Dallas NctrS reports the call
ing of an extraordinary session OF the
Texas Legislature for the purpose of sim
plifying the problem forced on the cotton
industry hy the European war The Leg
islature will he called upon TO enact a
warehouse law and Gov. Colquitt Is
quoted as believing that such law will
facilitate the financing OF cotton that can
not md a profitable market during the
progress Of the war
A most unusual view ot the Souths
problem is set forth IN the Memphis News
Scimpdr. which IN an editorial on Tuesday
had the following 10 say:
IN spite Of tho blitherinC ~ distin-
g,ilshod blatherskitcs In Washington. who
are drawing a Cougrcssman's salary and
who are talking about burning up ouc-
half of the Southern cotton crop In order
that a fair price may he obtained for the
other half. the war In Europe will he 70
MS a blessing in disguise If exports were
| not automatically suspended. Il might hc
y wise measure to prevent the expectation
Of our raw material by law. az Thomas
| Jefferson did on one occasion, although
| for another purpose. with cheap raw
| material In abundance In this country. n
| spur will he given 20 manufacturing such
/ as II never has received before. We have
] Il a
| ing abroad our raw materials instead OF
manipulating them into tho finished
] products NJ home.
/ "If the war comrcls us to change our
tactics II will he well for MS because II
will compel us To do that which We
! should have done long ago voluntarily. II
nothing goes away from home we will
have cheap foodstuffs and cheap raw ma
terlal for the manufacture of fabrics Il
would pay us TO increase our manufac'
| turing output and then we can go into
the markets Of the world enjoying a prac
/ teal monopoly. Good often comes to ma
tons as well ~ to individuals in curious
and repellant guises.'
The almost complete paralysis of thu
marketing OF cotton is shown in the weel
| end statistics OF the New York Cottor
| Exchange which places taklngs by spin
ners for the week at 27.l39 bales, agains
145.575 for the corresponding week las
year. The amount or cotton FORWARDED
to British spinnere was only 10000 bales
against 53 900 bales last year.
English papers which arrived by YES
terdays mail report mills throughout tn
Lancashire district working on an average
Of thirty hours per week. quite mum
her OF mills have stopped entirely. Spo
prices In the South have broken further
The Augusta market quotes new crop mid
ding at 9is cents. with sales OF l0l
bales. In Texas cotton is selling arount
So cents. although some sales were made
still below this figure. Cotton Is no
coming out very freely at these prices
|