The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-06
COTTON UP DESPITE
BEARISH FEELING
Confusion over the New Law
Fail, to Hold the Market
Down.
CHASING FOR DELIVERY

On. of the representatives of a south
A., moi Arm who was in New York yes
,.-day. after watching the strength dis
rIayed by She cotton market, remarked !:
cotton certainly is a fool This was
rene,,lnc , made by a dis
,rsu.sheI southern gentleman many
wears ago and at the same time regis
,erine hi own bearish convictions.
A. this moment some of the most i'm
,or,ant interests in the cotton trade
both In Liverpool. New York and South
are uncompromisingly bearish. but In
sni,e Of their e~ndeavors to bring about "a
h-ea, the market continues to show inn
presstye strength. After u brief period
of hesitation yesterday. during which
nrices sold of from the closing Of
THURSDAY, there was a quick change in
the undertouc and an advance Of nearly
% poiuts from the bottom, most vf which
vos held up 10 the close. The net gain
III, the day was "A matter of about 10
points.
The chief topic of conversation y~ester-
A,y was the attitude OF some of the Lead
lnc spot interests in regard t. deliveries
under the Smitli-Levcr law for the regu-
,ation Of trading in cotton contracts.
OWING 10 the ambiguity Of expression In
the statute some leading interests ave
decided that they have the right under
the provisions of the law to deliver cot
ION according to their own classification.
Others throughout the trade take the
view that II the law gives this permits
sion the law ought to he changed.
Heretofore the classification of cotton
has been conducted under the uper-
vision OF the inspection bureau of the
New York Cotton Exchange, which
ruaranteed the class OF the cotton. II
A seller were permitted to deliver cotton
and name it's grade n character !:
would place in his hands. at least tenn
porarily, a vast amount of power and
give rise to abuses which could he cor
-ec,ed only after tedious arbitration
proceedings with the Department of Ag-
~-iculture At Washington.
I; Is felt throughout the cotton trade
tha' this Is no time to jump at con-
illusions. and consequently opinion Is
divided on the point now under dispute.
III ruling made by the Department
Of agriculture last October. which was
made public only on March >. has by
70 means added to the confidence of the
cotton trade. Among the loyal mem
bers Of the exchange II is felt unwise
10 add 10 the spirit OF cOnlroNersy' par
t~icularly as the questions are capable
Of solution il approached in a spirit Of
friendllness.
The strength displayed by the mar
ket yesterday Is believed to be the re-
suit largely Of technical considerations
There is an acute scarcity of contracts.
probably owing to the firm conviction %
investors hat cotton is too good 4 pur-
chase to warrant scalping operations Tor
small profits. Contacts, therefore. are
rather tightly held. mere = 10 heuge
selling VI consequence. although seNera!
messages were received stating that GER
tain export contracts had been can
c~lled and that hedges would be sold
against tai" cotton
The New York Cotton ~t.Ncnarge n
ne into sight for the week Jo3,ob3 bales.
against .ol..o. bales last year. Inc
total FOR The season il ll.S5o.00O bales.
against l3,05l 600 last year. Interior
stocks are $4,000 bales, against 573.-
sOo last year.
Futures closed steady