The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-28
COTTON CLEARING
HOUSE Is ASSURED
Plan May Not Be Finished, How
ever, Until After Exchange
Is Opened.
INCREASE IN EXPORTS

Il was stated yesterday az tho Cotton
Exchange that work was being pushed on
| the clearing house plan as rapidly as
possible and that a working system would
be completed within tho next day or so
| and submitted to counsel for opinion. Al
though II was suggested that the ndop-
ton OF some clearing house plan might
be made ono Of the conditions 20 the re-
opening of the exchange, those who are
In a position to know what they are talk
ing about stated that this was putting the
case too strongly. IL is assured that n
clearing house will be part of the imam
cial equipment OF the exchange hereafter
but the plan has not made as much head
way thus far as others that have been
under consideration.
No statement has been made as to the
amount which the participating firms will
be asked TO subscribe to the clearing
house, hut II Is believed that 100000 Will
be the maximum, while some members OF
the committee take tho view that SlO,oOO
would be enough. II IL expected that at
least eighty firms will join, ana this would
give ssOO,O rs tn" initial capital OF the
corporation. This fund would be In
creased Of course 10y the fees that would
DE- based on the amount OF business put
through.
Those who favor a moderate subscrip-
ton ice ldho INC sliIA lllhN al lllo heiho
of very heavy commitments which might
be considered menace TO the market II
would be within the powers OF tho clear
ing house TO call extraordinary margins
on firms whose contract holdings showed
not engagement trtt might imperil tho
interests OF crher ring house members
However, no details have been finally
settled. and such talk as has been heard
on tho floor 10 largely conjecture or ten
tative suggestion 10 bring out opinions
from other members
Tho action Of Great Britain in giving
reinsurance regarding exports OF cotton
to Germany and Austria has been the
subject OF much favorable comment. That
II foreshadows b. radical revision In price
views must I've generally admitted. Ger
many could easily use 100000 bales OF
American cotton this season. owing 20 tho
complete stoppage Of imports OF East In
dian cotton Austria could take 100000
more. This makes 100000 bales that
had been left out Of calculations until
this assurance from the British Foreign
Office was given
Moreover. the influence Of German buy
ing demand would be multiplied. So long
as Il was felt that no cotton could go 70
either OF the Germanic nations there was
no hurry to buy on the part OF the rest
Of the cotton consuming world. The In
lection OF unexpected demand for 100000
bales. however. puts a different face on
the matter. Instead OF "a surplus OF
100000 bales there may be one not OF
g 500. 900 bales, but one of very much
less. In other words. the surplus will be
cut down not only TO the extent OF German
tskings, but also by the buying OF other
consuming countries which might have
been inclined to defer their purchases.
Tho question OF getting n reserve Of
cheap raw material is vital 20 the cotton
( mills OF this country. For the last three
years they have been working on very
small margin OF profit or loss. II the
reason for delaying purchases lies In the
| inability TO get the funds or the credit for
these operations some steps should be
taken TO remedy such conditions. II
would be a commercial tragedy IL the
Southern grower should sell his cotton at
a runous loss with the American spinner
/ In no position 10 prevent all this cheap
raw material from going to foreign com
| petitors.
The marking down OF January February
/ 10 4.b5 Is not considered a. significant as
II might be II the reopening OF the ex-
change We're not practically In sight
! Inside OF three weeks Il IL hoped all
markets will be establishing their own
quotations in a normal manner. Exports
| yesterday were 1875 bales, the largest
/ for any one day since the war hega n.
| The total for the season is only $4,000
bales against 2,2as 900 last year South
| ern SPOT markets are steady and I'M
! changed 20 Il cent higher. with quota
| lions in the big spot centres ranging from
/ 6hs TO 6&.