Evening star., 1924-09-05
CHICAGO MAY ADD
TRADING IN COTTON.
New York and New Orleans
Are Against Move-Vote
Set for Next Monday.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, September 5.--Members
OF the Chicago Board of Trade will take
a formal vote Monday to determine
whether trading in cotton futures will
become part of their activities. There
is a general belief that the proposal
will be indorsed by "A big majority.
Approval is not likely to be so general
In some other sections of the country
and among American members of other
exchanges. however.
Chicago traders have been dealing in
cotton through brokers in New York
and New Orleans. This has not proven
entirely satisfactory to them. but New
York and New Orleans brokers are
equally opposed to the opening of the
Chicago market to cotton trading. The
board OF trade men take the stand that
there is a demand for the addition to
the list OF commodities traded in there,
that the charter OF the board author
izes dealing in all agricultural products,
and that such trading would result in d
broader and more liquid market
without affecting prices except to make
them respond more quickly to laws OF
supply and demand
Texas Men Like Iden.
This stand is enthusiastically sup
ported by Houston and Galveston
cotton mon. since those ports would
be made delivery points for cotton
traded in in Chicago. according 4"
present plans. They hold the board
of trade already has a broad clientele
speculating in grain and provisions
and that many of these traders Will
become interested in cotton. 1t is
pointed out that half of the cotton
produced in this country comes from
west of the Mississippi. A Western
contract for Western cotton men and
spinners buying Western cotton is
expected by Gulf business men to ia
cilitate operations. They add that by
making deliveries at Houston and
Galveston, cotton could he loaded di
rect for foreign destinations with a
saving Of handling charges.
The report of the special Southern
warehouse commission of the New
York Cotton Exchange recommending
the extension of delivery privileges on
New York future contracts to New
Orleans is taken in on some circles to
he a move to counteract the Chicago
plan and the naming of Houston ana
Galveston as delivery points. The re-
port favors the extension of the de-
livery privileges also to Galveston.
Houston, Norfolk and Savannah
whenever State laws at these places
lUllE protect uUUeT IHe
present cotton futures act"
Broader Markets Seen.
In the Southeast few concrete re-
suits are expected to follow inaugu-
ration Of trading in Chicago except a
"broadening of the market"
Cotton men in Georgia and the
Carolinas say that while trading in
cotton in Chicago cannot add one bale
to production or one spindle to con-
sumption, it will result in more trad
ing in contracts in territory hither-
to not interested primarily in the
South's great staple.
Forward looking interests in that
section welcome the acquisition Of
new blood in the field of cotton spec
ulation. believing broader markets
mean better prices for producers.
New Orleans Opposed.
New Orleans cotton men are firm in
the belief the Chicago experiment, ii
tried, will not prove successful since
that city is far away from the fields
and does not possess the machinery
and organizations with which to
gather the data necessary to operate
an independent exchange. They de-
clare Chicago is not in any sense a
cotton market; that no cotton is con-
sumed in that territory and that there
is no necessity for cotton to pass
through that center on it's way to
consumption.
Whatever effect the new plan will
have on the markets for raw cotton,
the Southern cotton textile manufac-
turers are going grimly ahead MAX
ing adjustments on their goods to
new price levels for the raw staple,
warehouse stocks and orders. Mills
in Alabama. Georgia and the Caro-
linas are extending operating hours,
and many plants are holding accept
ance of orders down to the stock of
cotton purchas sed.
In the raw cotton markets trading
is held back pending the Government
crop report due Monday, which is ex-
pected to arouse the usual dispute
concerning it's accuracy as compared
with that of private estimators.