The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-30
WORKING TO AVERT
FRICTION IN COTTON
Liverpool. However, Sends Eva
sive Reply to Requests
From New York.
SIR GEORGE PAIsTs VIEW

Developments yesterday Indicated chat
II might take como very diplomatic work
to prevent friction between the New
York Cotton Exchange and the Liverpool
Cotton Association AZ a result OF rno
meeting late "wednesday Afternoon OF
members having Liverpool contracts or
straddle commitments IL was decided 10
send cable TO Liverpool stating the
New York Wow OF Liverpoois recent
actions. including tho policy OF permit
ting spinners TO buy cotton on call with
out buying In the equivalent In futurea
This cable set forth that 1t was felt
hero that spInDers should not be peruit-
ted 20 sell January February when they
bought spots that spinners who were
short ought TO be compelled to cover
when tho cotton was used that no fur
tIer balloting below s cents would be
permitted here. and. finally. that the fur
Their marking down OF prices before tho
opening Of the exchanges would not bs
regarded in a friendly light
About l2 o'clock cable was received
here stating that the price Of January
February had been reduced points fur
Their 20 the basis OF $500. This was
Something of a shock to members OF the
local exchange. At first II was thought
that the cable might have been sent be-
fore the receipt of the New York cable
which was something In the nature of an
ultimatumL An explanation was asked
for. but the cable in reply was SO evasive
in character that II makes the situation
even more unsatisfactory than before.
There IL OF course some unauthorized
talk OF reprsal, such as declaring straddle
commitments closed on the basis of s
cents. or taking such steps as would
force Liverpool TO reduce the strRddle en-
gagements. on the other hand. II is
pointed out that some cotton has been
offered in Liverpool from the South on the
basis OF 4d.. and that under such cir
cumstances Liverpool Is hardly at fault
for wishing to see commitments marked
down to the level OF existing spot prices.
The conference committee ls in full charge
OF the situation. and no one believes that
Il will permit the present friction TO upset
the practically completed plans for the
reopening of the exchange in the near
future
Sir George Paish and Basil Blackett
called at tho Cotton Exchange yesterday
afternoon and had a talk with the mem
bers OF the conference committee Tho
situation was discussed from a general
standpoint. Sir George took the stand that
the sooner the various plans for the re-
habilitation OF cotton took into considera-
ton the existing prices In the South and
met the issue squarely just that much
sooner would IL be possible TO make
return to normal He opposed the adop-
ton OF any artificial aid that stood in
the way OF bringing contracts down 10
parity with spot quotations,
notice from the conference com
mittee was posted on the bulletin board
stating that the conference committee
would not view with disfavor a certain
amount of trading on the Curb but
especially requested that no cotton be
sold below the basis OF $50 for December.
Developments yesterday indicated that
the delay in reaching an agreement re-
gardng the affairs OF Pell & Co. would
not be likely 20 stand in the way of an
early opening OF the Cotton Exchange.
II IL hoped that an arrangement will he
made whereby the unliQuidated Pell con-
tracts may be put into the syndicate
plan by order OF court This would make
a price of nine cents. which is more than
could be obtained at present In any other
way.
Southern spot markets we're steady and
unchanged to one-eighth higher yesterday.
Exports reached a total OF about $1,000
bales, more than half OF which went TO
France,