Evening star., 1925-02-25
ASK GORE TO PROBE
TRADING IN COTTON
Growers Charge Sweeping
Move to Depress Spot
Prices in South.
BY j. G. ROYLE.

Southern cotton growers have taken
steps to induce the Secretary of Agri-
culture to investigate possible manip-
ulation of the cotton market. The
growers involved assert that there is
a tremendous volume of cotton being
held in New York, and that this is
being used to depress spot prices in
the South, so that the commodity can
be bought cheaper in that region.
The stocks maintained in New York,
Ut is charged, total some $4,000
bales. A large amount of this cotton
has been certified by Government in
spectors, and most of 1t grades mid
ding and above. 1t is, however, so
short in staple-barely q inch-that
domestic mills do not want it. The
planters state freely their belief that
the sole purpose of keeping this cot
ton in New York, at a cost of around
$3.50, 1000 a month, has been to depress
March contracts, so that its owners
can buy spot cotton in the South
cheaper and to manipulate the mar
ket for futures.
Based ON New York Prices.
Nearly all purchases of spot cot
ton in the South are based at present
on quotations for March contracts in
New York. 1t is obvious that by de-
pressing March artifically spot houses
can buy spot cotton in the South
IS to $40 bale cheaper. 1t is eX-
pected that the bulk of this $4,000
bales of undesirable cotton will be
rendered here on March contracts be-
fore the end of February.
A large part of the March short in
terest is being transferred to May,
and longs say the proceeding with
the 224,00 bales stored here will be
repeated with that option unless
something is done to bring future
quotations here to an equality with
spot quotations in the South. Cotton
houses in the South report the de-
mand for spot. cotton from all over
heavy that the price has risen despite
depressed quotations for March in
New York.
Ask Secretary to Act.
Attention of Southern legislators In
Washington has been called to the
fact that the Smith-Leever bill was
drawn and passed for the express
purpose of preventing the accumula-
tion of undesirable grades of cotton
in New York, to be rendered on con-
tracts from month to month, because
of the depressing effect on prices of
such practice, and that under the pro-
visions of the bill it is the duty of
the Secretary Of Agriculture to see
that this is not done. The planters
want the Secretary to call on the
president of the New York Cotton
Exchange for an explanation of the
difference existing between quota
tions for March cotton in New York
and spot prices in the South.
Government Reports Scored.
Efforts to prevent the bi-monthly
reports of the Federal authorities on
the cotton crop have made little prog
ress, but there has been no change
in the bitter opposition of growers
to the frequent publication of Gov
ernment figures. They say the figures
have been misleading and have had a
most unfortunate influence on the in
dustry. One statistfcian has compiled
a summary of the Government figures
from 1915 to 1924, showing that for
those 10 years the figures indicated
2,032,221 bales more cotton distribut-
ed. used and in stock than ever were
produced.
In the South it is freely asserted
that some of the difficulties of the
New England textile mills are due
to the fact that they were on the
short side of the market in 1924 and
did not buy cotton at the most ad-
vantageous times and prices.