The sun., 1914-08-21
PROSPECT OF ENDING
TANGLE IN COTTON
Liverpool Sending Committee to
Aid in Adjusting
Straddles.
SOURCE OF BUYING POWER
Short Interest Of English Trade
Placed at 100000 Bales
or More.

Liverpool yesterday took active steps
TO promote the liquidation OF the straddles
between that market and New York and
TO unravel the tansle that has existed
throughout the cotton trade ever since the
exchanges closed on July 81 There has
been daily interchange OF cables be-
tween the two markets for nearly three
weeks. and until the present practically
no headway has been made In bringing
about an adjustment The volume OF con-
tracts has been reduced In the New York
market without materially affecting the
net interest. which shows a preponder-
ance OF long contracts for the American
trade and short contracts for Liverpool
and Europe.
Yesterday, however. Liverpool took a
gratifyingly positive step. OF which the
New York Cotton Exchange was informed
by the following cable: Believing II best
for an concerned that personal Interviews
Will do more 10 unravel the straddle be-
tween our markets than any cabling
would do We have appointed whneray,
Arthur Smith and Cooke to sail Saturday
TO confer with your committee Please In
vite New Orleans to meet delegates in
New York"
Although the English committee is not
expected TO have pienary powers, the
members will have an opportunity to go
over the American contract situation and
obtain more information than could be
possibly transmitted by cable. The COM
rnittee is composed of cotton men OF wide
experience In intermarket operations, and
ynyit a
New Orleans delegates is expected to re-
suit in compromise that win adjust the
present tangle.
As II now stands Liverpool Is short in
the local market about 800 900 bales and
II these straddles are undone the resultant
buying power would be sufficient TO absorb
AN enormous amount OF LIQUIDATION II is
believed that Liverpool has reason TO de-
sire an end to unsatisfactory conditions
just as much as New York, for even spo,
business is difhcult to put through at
present II Is rumored that Liverpool
spot sales have not been fully reported
and that recent transactions are fully
10000 more than those given In the official
cables.
Al . meeting yesterday Of the board o,
managers Of tho New York Cotton Ex-
change resolution was passed giving
authority TO brokers OF the exchange to
call for original margins OF $40 bale
On ell contracts from February to May
1913. inclusive, as these contracts would
come under tho provisions OF the new
Lever cotton bill. which will become a Law
! February IS. This call for $40 bale
IL to protect brokers against the possibil.
ity of the tax OF cents a pound being
imposed on any OF the old contracts. Th.
resolution Ia merely nominal In It's effect
for there is practically no likelihood tina,
the terms and provisions of the bill will
not be fully respected.
The confusion regarding spot conditions
in the South continues. Markets nifty &c
n hundred miles apart are quoting cottor
at difference OF 100 points. Some sale,
have been made IN Texas on the basis o
SiA cents. on the other hand, staple cot
ton--cotton having fibre ranging from
] y TO III inches-is relatively quite strong
and is selling on about normal basis
This is because American mills need
good deal OF long staple cotton to max,
fine goods which formerly were manu-
factured In Great Britain and France. I,
is reported that bids OF II cents for !,
/ inch cotton have been refused in Mssis-
/ tippt markets