The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-03-05
COTTON MARKETS
Domestic Future Markets Are
Closed Pending Adjustment
to New Style Contract.

W tultF Jay afternoon MATCH B.
Confusion rcigned supreme In the cot
ton markets today following the passage
of the amendment to the futures trad
ing act, whereby deliverable grades are
reduced 10 10. Because Of The situa-
ton neCessitating adjusting Of con
tracts TO conform TO the new require
ments il was decided by the directors
OF the New, York and New Orleans
exchanges nh to open for business,
although at first Il Was thought posi-
bic to start trading after a short de-
hay, II Is expected trading will be
resumed as Usual Thursday morning,
when operations will be in old-sty.e
and new-stylc contracts. In the for
mer all deals VIII be confined to liqui-
datlOn and 1t Is required that when
orders are sent in they must specify
old style New business will be in
the contracts conforming to the amend
cd act, but IT has been requested that
brokers do not accept any orders in
such for March,
What the effect OF the change will
be finds the trade at sea, although the
preponderant view Is that the new con-
tracts viii rule at a higher level, esti-
mates ranging from $50 to 400 points
over the level of corresponding old
months. The new provision limits de-
lfNerable grades Of white cotton to
seven, from low middling to middling
fair; in yellow tinged four grades are
allowed, from middling to strict good
middling, while good middling and
strict good middling yellow stains may
be delivered, At least that was the
best Information reaching here during
the day. Another feature is that class
ing IS to- be done under government
supervision, which Is expected, accord
ing TO some authorities, to further en-
nance the value of the contract and
assure it being in closer harmony with
ruling spot prices in the belt.
Discussion OF the situation elected
many opinions, but all were more or
less tentative. What the effect on ex-
isting contracts will be Is more confus-
ing perhaps than the level at which the
new may be bought. However. most
observers seem to think that liquidation
OF the old will bring about at least a
temporary decline.
Also the effect on the spot markets
can not be told until trading starts and
the trade finds where it is, During the
day there was practically no business
doing.
In L|iyerpool the market at first was
disposed to drag, but before closing
some reflection of the confusion on this
side was had. Finals were irregular
and from II points off to 26 up the
distant showing the strength, Spots
were marked down A. points, good mid
ullhE 10 lb.Slui with sales 2,uuO DaleS,
including 500 American. Receipts were
10000 bales including $500 American.
In the spot centers quotations as a
rule were without change. Some adj
vices said that "A little inquiry was de-
veloping, some Of IL for low grades, but
it Is not expected that business will
amount to much unit. the future mar
kets adjust themselves, In the mean
time there is nothing In the news to en-
courage expectations of domestic spin
ners departing from their nonbuying
attitude. The weather in the belt this
morning was rather u~nfavorable for
new crop preparations.