The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-16
ENGLISH FIRMS MAKE
NEW COTTON DEMAND
Liverpool's Request for Mar
gins Called Violation Of
Agreement.
LOCAL TRADES POSITION

Quite q stir was created on the floor
OF the Cotton Exchange yesterday by a
statement posted on the bulletin board
announcing the receipt Of n cable message
from the president OF the Liverpool Cot
ton Association saying that In view or
present values being far below nine cents
II was suggested that money deposited
with designated banks or trust compa-
MES should he released 10 the Liverpool
firms interested.
The conclusion OF the notice was as fol-
lows: The committee feels that the re-
quest Is "A fair one. but nevertheless must
leave II to the discretion of each member
to do as he elects"
Judging from the comment on the floor
there was little likelihood that the Liver
pool request would meet with unanimous
response. II was pointed out that when
the conference agreement was drawn up
the Liverpool market agreed that the
money should remain in trust until the
contracts were closed. The contracts on
which remlttances are asked have not
been closed. II ~ thought that the pros
pect OF the end Of the moratorium may
be a strong influence In prompting Liver
pools action. IA funds obtained in the
American market are likely TO be neede-i
FOR making settlements.
Following IL the clause of the confer
ence agreement which appears TO be vlo-
lated 10y LiVcrpools latest demands
THAT New York nrms shall put up In
trust IN designated New York banks suth-
Client cash 10 margin such cotton rs they
are long in Liverpool to $40 for January
February, and further. shall put UP in
trust in designated New York banks such
cash AZ will margin their December con-
tracts in New York down TO $50 such
margin VIII be released uncond tionally
only to the extent justified by such sales
as New York brokers may make OF their
long interest In Liverpool through the per-
mission TO participate In the ballot. which
has been given by the Liverpool FIX
change. and further To- such extent as Is
justified by such purchases a. they may
make against the contracts which they have
sold in this market for Liverpool account.
In other words, this ma.gin which Is put
up in trust IL only released unCoudition-
ally on closed contracts. The Liverpool
firms To whom such money thus becomes
available have agreed 10 make their own
arrangements for transferring same to
Liverpool. Such margins as are not un-
Conditionally released will be available for
return to the parties deposting them TO
the extent justified ny any advance IN
Liverpool above =. 20 and In New Yorl.
ahovr $50. Tho Liverpool exchange
agrees 10 give twcuty-four hours notice OF
any contemplated change In pric" and not
TO make such change without consultation
with New York
\ prominent m" nher 81 ,hc Cotton EN-
change who announced his intention Of
ignoring the Liverpool request said 81
think Liverpool Is pushing an implied con-
tract obligation rather hard This H. tho
second time she has broken the Same
agreement with us"
No reports We're forthcoming from
either the Clearing House committee or
the one having the syndicate plan in
hand \ report on the Clearing House
is not expected until carly in the coming
week. on account OF tho necessity of oh
thinning legal opinion on the details as
they are worked out Progress with the
syndicate proposal j. necessarily slow
as 70 fcw firms nave not yet stated their
position. and replies from all Arms are
essential before the plan can be put into
execution.
Slightly better reports are now coming
In from Southern spot markets. A few
hut with the Wade syndicate in a position
TO loan the same amount on 1000 600
bales the stampede Is likely 70 be checked
News from Washington regarding the
Wade proposal encourages the belief
tina. It may meet acceptance
Norfolk reported spots steady AZ 6iSc.,
and other markets were generally un-
changed. Exports for the day were 21.-
SS7 bales. the largest amount reported
IN a long time These shipments wcre
about evenly divided between Great
Britain and the Continent.