New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-13
25-Cent Cotton
Results from
Trade Buying
Manufacturers Seek Protec'
ton Against Heavy For
ward Sales of Goods

Cotton for July delivery sold at 20
cents a pound shortly after trading on
the local exchange opened yesterday
while the price of October contracts
Jumped to 24.55 cents. These quotations
represented overnight gains OF about %
n bale. and were established in an ex-
cited movement to buy in which pur,,
chases By milling interests for actuai
delivery figured conspicuously. In
fact. most of the recent heavy buying
which has taken place IN the marhes
il attributed to trade interests ABROAD
and manufacturers in this country
who have found it necessary 10 puy
Co.. future delivery to protect them
selves on forward sales OF cotton
Soods The demand for the latter is
Extremely active, with prices tenolhs
steadily upward, owing to heavy p"i
chases for government account
Liverpool Up Sharply
An advance in the Liverpool cotton
market bordering on the sensational
preceded the early rally on THIS slde
yesterday. and advices from abroad
Indicated that spectators who nave
been selling short of late found them
selves in A tight predicament, owing
10 tho fact that little of the cotton
bouoht on the rise was finding It's
wav hack on the market. The same
situation also developed in the local
market. As might be expected. there
,vas selling by speculative holders for
nrofits when the July price touched 20
cents and also selling as hedge
AGAINST larger offers of spot cotton
in the South. but these offerings soon
d;sanneared from the market, where
mon prices rebounded from the set
back which took place when the sell
ing pressure was heaviest. oh ths
final transactions quotations Fahgeo
from 4s to GO points higher.
While officials of the New YORK
Cotton Exchange have not as yet
taken any action to stop speculation
the president, George NJ. SMUT, ex-
planned yesterday that the polcy'
adopted by members generally, OF ask
ing customers to put up larger mar
gins was having a tendency TO keep
down speculative activity.
Margin Requirement Doubled
"Thc trade" he said, generally is
evactinc much heavier margin against
speculative accounts than customary IN
the past, and consequently the volume
of business is very much lessened.
In the past Cotton Exchange houses
have asked their speculative customers
TO nut up $500 per contract Of 100 bales
the unit of trading. Now the margin
requirement has been raised to Sl,oOo
per contract, and in some cases even a
larger amount is demanded. 1t Is
stated, also that some Stock Exchange
houses which in the past have done
substantial business in cotton have
stopped dealing in the commodity,
owing TO the wildly fuctuating markets
of recent weeks.
Several reports were received here
from the South indicating that the ad-
vance was bringing out increased spot
offerings. Southern spot markets as
officially reported were % to l25 points
net higher, most of the markets being
r. 10 100 points above Mondays prices,
with a fair volume of business at sew
eral points. Exports for the day were
S.s75 bales, making 4,98O,731 so far this
season.
Closing prices here compared with
those of the day before and year ago
follow: