The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-20
HELP FOR SOUTHERN
COTTON SHIPPERS
Spinners Asked to Aid i'm the
Financing Of Forward
Contracts.
SPOT QUOTATIONS LOWER
Purchases Being Made in Texas
Around Basis Of Nine
Cents.
SPOT QUOTATIONS. LOWER

Developments In cotton yesterday turned
from the contract situation TO conditions
existing in the South. and the voluntary
committee OF the New York Cotton Ex-
change came out with a suggestion that
promises strong remedial results for the
southern shipper.
A great deal of the cotton sold to Amer
lean spinners and most OF that which In
sold abroad Is handled on the call plan,
which involves the purchase and sale OF
futures as hedges. Although less business
has been done in forward commitments
this year Than usual, the volume of these
transactions has been uncomfortsbly large.
on great many OF these contracts the
prices were fixed and futures bought at
levels ranging from IL to 10 cents These
trades were carried In the names OF South
crn shippers and brokers looked to them
for margins Spinners who contracted for
such cotton are not in the habit OF paying
until the cotton is delivered.
on account OF the demoralized break in
cotton. great many shippers with legiti-
mate hedge contracts have been badly
crowded and unable to respond to margin
| calls. The voluntary committee, there
fore, came out with plan which furnishes
! aid for these shippers, and II the spinners
generally act In accord with the sugges-
| ton, the strain on the whole cotton trade
VIII he materially relieved. The circular
| embodying this plan says.
The idea is that these Southern ship.
pers shall cancel the old contracts with
| the mills and renew them again in exactly
similar form except as to price 1t is
suggested that the price on all new con-
! tracts he made. say. l0i2 cents for mid
ding. landed mills The mills would give
! them their non-interest bearing note due
/ on the last day OF the month in which
shipment may be made for the dffereuc,
] l.YF sns.s. -. -
| the new contract price This note would
he Endorsed by the Southern shipper. who
would turn over the Endorsed note TO tn,
! commission house in New York or New
/ Orleans. In consideration of the receipt
1 of such note. the New York or New or.
leans commission broker would guarantee
the delivery of the cotton through tn.
southern shipper to the Northern OF
Southern mill at the lower price"
southern spot markets are getting lower
| daily and japanese buyers are reported I,
! he purchI sing cotton in Texas on the basi,
of cents per pound for midding. Mos
| OF these purchases are made on the basis
OF .. T. (. Japan ports. but they reprcsen
cent level and occasionally lower a
/ Interior Texas points. Augusta, Ga, ha,
lowered its middlinG quotations for new
I crop CO ton TO 9Si cents. American mill
have been moderate buyers, but the Soutl
/ has been steadily reducing It's basis an,
this has caused the halt In the buying
Habersham King. in'his review OF cot
ton developments for the week ended An
gust II, says: The weeks development
have been remarkably favorable In botl
temperature and rainfall. leaving the crol
% the entire belt In most excellent con
dition and promising the larges, crol
ever produced. The only exception to tn
very favorab BILE developments OF the montl
to date is that along the southern portion
Of the belt. whore picking should be nov
in fun swing, the rains have afforded In
terruption to picking OF from six to tel
days out OF the fourteen which hav
elapsed staining the open cotton and thu
resulting In an undue amount Of off grade
In the first picking. The September gin
ming will probably show considerable
smaller result than the advanced stag
of the crop would warrant one 10 lool
for"