The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-04
CONTRABAND TALK
PUTS COTTON DOWN
Sharp Decline i'm Ocean Freight
Rates Regarded as
Significant.
SOUTHERN SPOTS STEADY

Cotton had a fairly steady opening
yesterday. but later broke sharply on sell
ing attributed to wall Street and Western
realizing. The South was = moderate
buyer and spot :aws indicated stelGiness
at most Southern markets. This stead.
ness, however. was generally attributed
to scaniy offerings caused by inability NJ
farmers TO get their cotton to market.
One significant development OF the day
was the big break in ocean freight rates
The rate to Bremen, which last week
touched $3.50 a hundred pounds. or
$3.50 n bale. was quoted yesterday al
$3.50 "A hundred pounds, or SI3.50 a bale.
The Barcelona rate broke from S1.35 10
IS cents and the Rotterdam rate has
dropped from $3.50 to 81. Galveston
reported that the demand for outgoing
freight room had fallen Off consider.
ably
These developments arc IN line with
the reports which were quietly circu-
lated In well Informed quarters yester-
day 10 the effect that there was ncreas-
ing likelihood that cotton might be placed
on the cOntraband list some time IN the
near future. There is no doubt that
the Interests which have Kept u close
touch with the international situation
are much disturbed owe. developments
tending to put cotton in the list OF con
traband.
This step may not bc altogether a.
tuated by the fact that cotton ls the
chief ingredient Of modern explosive.
Students OF international law point out
that there Is moro warrant for declaring
cotton contraband in the present war
than In the civil war. During the ciyil
war this step was taken by the Federal
Government not because cotton was a
commodity susceptible to use for mil
itary purposes. but to administer a
crushing blow to the financial resources
of the Confederacy.
In the European war, on account of
the community of interest between Ger.
man industry and military necessities
as well as the fact that cotton forms
the chief ingredient for smokoless
powder, IL is thought that it, inclusion
In the contraband list would he ulti-
matcly recognized as merely another
radical step which the extraordinary
situation has forced upon the bellir-
erent nations.
y prominent Southern mill man in
writing to a local brokerage firm saws:
I 81 am firmly convinced that n viL ts
only question of short time before
cotton will be declared contraband OF
war. The only factor that has prevented
| England and France from taking this
/ action 30 far Is on account of their de-
/ sire to maintain cordial relations with
the United States. | feel sure, how
ever, that pressure will soon be brought
to bear which these countries cannot
resist"
If cotton should be included in the
contraband list II would result IN shut
| ting of further shipments direct TO
| Germany and Austria and cause closer
| scrutiny of exports TO adjacent neutral
countries. The effect upon the market
might be rather pronounced FOR time
although 1t might not make the situa-
/ ton any worse that it was expected
70 be at the outbreak OF the war.
Southern SPOT advices reported u fair
| demand by the Carolina mills with
good inquiry from Liverpool. 1t il
/ also thought that another advance to
: cents in the interior would not he
/ likely to bring out nearly as much cot
ton rs when prices recently reached s
cents in the interior.
Futures closed barely steady.