The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-24
NARROW RANGE OF
PRICES IN COTTON
selling Of Near Positions the
Chief Feature Of the
Trading.
LEVER LAW INJURIOUS

Abou, The only factor that disturbed
,he usual holiday dulness was somc pre-
,tn,nary liquidation Of the January OPP
tan This resulted In a decline Of 3
- 0 points during the early part Of the
,...,on, but most Of thtis wa recovered
b.fore the close. with final prices un-
hanged TO . points net lower.
I, is not believed that January will
N TO a much greater discount under
March than at present in spite Of the
nrt HAT there Is plenty Of cotton to
,,.l,v,r on contract. The local stock
a ,endcrabie cotton IA between 140.0O
and 10000 bales. but the discount Of
,he near months comes pretty close to
rpresenting a banking difference.
some Interesting comment on the clog
sng Of exports vas made by a local
cotton authority yesterday who called
attention to the discount of the New
YORK market under Liverpool and sug
rs,ed that even IL II were commercially
.osslble to buy cotton here al &c. per
,ound under Liverpool II was still a
question whether transactions would be
= any yolu ne owing to the difficulty
shich Liverpool cotton merchants find
In financing such operations. Au-
,hority further said:
"Of course the American cotton mer-
chsnt can ccept an order at a liked
p,o from an English spinner. but he
annot COnslgn cotton paid for with
American money 70 Liverpool to antici-
nat. those wants for the reason that
he cannot sell "A hedge in the Liverpool
market against II. II section IL Of the
smath-Leyer law. forbidd!ng trading In
pn,racts In foreign markets. were re-
oealed IL Is easy to see that II would
ou,rkly increase the volume OF our ex-
ocr,s because II would permit every
American cotton merchant conversant
With the cotton trade to sell Liverpool
contracts md ship the cotton to Liver
pool with which TO fill the contracts
provided he did not ind a spinner in
England 10 buy the cotton In the In
ierim-
Many American cotton merchants
are yearning for an opportunity TO en-
ploy cheap American money In just such
a operation. and some Of them would
secure tie freight room even 10y sail
.ng vessel. x they could sell the Liver
rool contracts legally. OF course this
section Of the law has been tried In
IV.TI flll "a uNN9riotl GiNEh hHal II was
unconstitutional. bu. the case has been
appealed to the Supreme Court OF the
GATED States and pending the de-
csion no cotton merchant In America
. willing 20 take "A chance Of suffering
ne penalty of $40 per bale fine.
III money were easy 10 secur abroad
ehere can he no doubt but that Euro
pean importers would hedge and carry
q: least one million bales more than
tAey are now carrying. II is possible
thai American shippers, II given the
Scortunity. might do the same. They
cannot, however. be expected to shin
cotton 20 Liverpool with n New York
hedge against II. which hedge would
no. reflect cheaper freight. better ex-
change rates and relatively. X
peace lie declared. might show a full
IT, per pound less profit than a hedge
IL Liverpool would show"
u therefore can lie seen that the
sn!.h-Iever law. which was expected
20 be a blessing to the South, is really
cHppling its greatest industry in an
hour Of crisis.
Market closed steady.