New-York tribune., 1918-08-18
Educational Value to the
Cotton Exchange hquisitiion
Members of New York Institution Reve, for d.
parity Between Prices of Spot and Futures for
Benefit of Public and Growers

The investigation of the New York
Cotton Exchange last week marked
step toward realism. 1t helped to de-
stroy much of the mystic atmosphere
and inscrutablity that in the popular
mind are associated with the marketing
in the Southern staple. At least, it did
90 potentially, for the record of the
hearing will in time be published SO
that all who read may know. The in
quiry led to a restatement Of the pur-
poses of the mysterious future ex-
changes for the benefit Of folk who
cannot see any more in cotton than
something with which to stuff mat
tresses and make cloth-and particu-
larly for the benefit of the cotton
growers.
For the first time in a decade, the
members of the exchange were called
upon to reveal the inner secrets Of
their bsuiness operations and to let
the uninitiated know what the cotton
exchange was all about. When the
announcement was first made, in Nav.
That government agents at the request
OF Southern Senator-and many other
persons--were going to hold hearings
at the Stock Exchange to learn why
prices were behaving in the way they
then were, the local brokers perhaps did
not receive the news with unmingled
emotions. But when all was said and
done on Wednesday night of last week,
and Charles j. Brand, chief of the Bu-
reau of Markets Of the Department Of
Agriculture, and his assistants had
querled them on practically all of their
wealth getting activities, the brokers
agreed that the investigation would be
beneficial to the cotton trade in gen.
eral and the exchange in particular.
The inquiry resulted in the accumula-
ton of knowledge, and, though little
knowledge may be dangerous thing,
volumes OF it, such as were recorded
in two busy days, may help to make
even Southern cotton producers and
Northern cotton brokers more compat-
ible and to find a modus vivendi
Educational Value
To the Inquiry
Journalistic cotton experts and other
reporters who wrote daily accounts of
the hearings laid emphasis on the
technical causes of the disparity be-
tween the prices Of spot cotton and
the prices Of futures on cotton ex-
changes, but lost sight Of the great
educational significance OF the in
quiry.
Think what it would be worth for
that part of young America that has
aspirations toward success in the
world of cotton to have at its service
for two full days score or more of
the best informed cotton men in the
country! Think of what it would
mean to the youthful and ambitious
to be able to ask these generals of the
cotton trade any questions whatso-
ever pertaining to cotton, foolish or
otherwise, which happened to come in
to their minds! Such concentrated
method would have the traditional
plan of starting at the bottom as an
assistant office boy and learning the
game yard by y9rd beat q thousand
ways. The IL ,stigators of the
Bureau of Market. had their opportun-
ity, and the results of their queries
will soon be available for ell who de-
sire to profit by them.
s The meaning Of spots, future, mid
ding uplands, even running middling
.hc cotton clearing hesse, the tech
niQue of market movements, the reason
why cotton exchanges seem to be ex-
elusive, the cost and qualifications for
membership-thesc and one thousand
other things that the amateur who is
interested in cotton would like to
know were eXhaustively covered at the
hearings whose purpose. as an
nounced at the beginning by Mr.
Brand, was to develop a fabric of
fact.
Now, Of course, those familiar with
the politics and sociology Of cotton
know full we'll that the Secretary OF
Agriculture did not order the investi-
CATION of future exchanges primarily
TO facilitate the upward march of th@
type Of youth who hopes to do fol
cotton what John D. Rockefeller die
for oil. Murmurs that developed in.
to impassioned protests on the part
of Southern growers and editors lee
to the hearings. When the break
in cotton prices followed the spectacu.
lar upward movement emotional dev.
otees of the cotton industry below the
Mason and Dixon line expressed thei,
conviction that gambling in the New
York Cotton Exchange was arbitrarily
depriving the cotton growers of right
full profits. Though less intensive ano
Of a smaller volume, wall arose