The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-06
QUICK WORK ON THE
COTTON SYNDICATE
Signatures to Agreement Fore
shadow Early Opening Of
Exchange.
NEW LIVERPOOL TACTICS

Not since che closing Of the exchange
on July 81 have the developments in cot
ton come US thick and fast az they did
yesterday Signatures were being OBJ
tained from the Individual members or
tho various cotton firms to the corpora
ton syndicate agreement and the floor OF
tho exchange was crowded most OF the
day. The thnEle with Liverpool over the
straddle liquidation showed further COM
pl!catons. and II the New York members
OF the conference committee were not en-
dowed with fund OF humor as inexhaus-
tible as their patience they would be
eAaspcrated beyond endurance.
Everything points to an early opening
OF the Cotton Exchange. and not little
optimistic sentiment was impaired by the
completion OF improvements in the tran
Ing ring" the steps OF which have been
fitted up with a new cement noOilns.
Liverpool will open for restricted trading
to-day on the basis OF AIS for May-June.
New buying is permitted, but selling must
he confined 20 liquidation OF old contracts
However. there Ia an underlying reason
for this step by Liverpool which Will be
explained later.
The members OF the Cotton Exchange
signed three separate agreements "a fol
lows. First, a contract purchase and
sales agreement binding the sgners TO
sell at nine cents and take back the cot
ton at $50; second, a guaranty protect
Ing the bankers who are furnishing The
$l,5oo.0oo for marking down the contracts
from nine cents 10 seven and hair tMru,
o formal agreement TO tho tax OF S2b
for the round turn.
The conference committee Is said to
have agreed to make tenders on or before
November "a The whole plan is said 20
be practically operative. awaiting only a
court order permitting the transfer or he
pell contracts to the corporation. The
signatures Of the members Of the various
firms are expected 30 be obtained by the
end OF to-day with the exception OF those
who may BE- out Of the city.
Liverpool has been extraordinarily busy
in the last day or two and II there Is any
device 20 get money out 81 an affiliated
market which the directors ~ that honor
able body have not tried the members OF
tn. local exchange would De interested 20
know what Il IS. The eNactions Of the
English market. however. have been
pressed 20 the limit and Il Is doubtful x
further demands viii be met As q now
stands the price or New York December
has been reduced li9 points below the
level nNeI by the conference agreement
ard Liverpool has cut the price OF Jan
urry-F February even below this parity.
When the price OF January February
was around i've pence the amount OF cot
! ton sold On ballot Tor American account
| was practically nil on Tucsday. when
| the price Of January February was
marked down 20 / 1854, n ballot was put
! through for 100000 bales and the share
| that was to be allotted 70 America
| amounted 10 about $4,000 bales. In other
words LNcrToo, would not cover ~
| snorts until prices had been marked dowr
20 basis below the existing parity with
| Southern spots and more than half a cent
below the agreed minimum OF ISL foi
| December IN New YORK
| More than this, the cable received yes
| to-day afternoon announcing that Liver
! pool would he oDcn to-day for restricted
trading is merely resort 20 an eNpe1icn
20 enable the English Arms to cali mar
! gins. something which they would not h.
permitted % DO below agreed prices Unit
their exchange was opened. This, there
! fore Is the reason for tho nominal open
Ing
So long as Liverpool marked dow
| nricca, even against the binding pledg
! ~ the conference agreement there wa
no disposition 20 Indulge IN harsh crIti
| clqrn So the reduced level was above ar
| importing hasis and also above Tho hasI
| or New York "curb' prices Az present
| however, Liverpool Is making artitrar
| prices which have no relation to ~
value OF cotton elsewhere, -Four pence
earthing might lust ns well be thr!pUeUos
0nd no attention will be paid TO 'h
changes that take place in the Engli-
quotations II IL felt here that Lv"rpoc
Is merclv trying to see how FAR Il can 20
New York firms have withdrawn the!
cotton from ballot and will not accept AN
salcs until Liverpool accepts the minimum
~ ISL or agrees on a more narrow az
1bO ut hat bA fus
markets
Spot markets IN tho South were gen
orally steady and unchanged yeSterday
Exports were 2E.O12 bales making tota
~ $4,000 bales, against 2,s6G,0o0 las
year