San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1926-04-19
BUYERS
WILL VOTE ON
NEW RULES
Texans Feel Changes in
Spot Trading Will Not
Be Successful.

| iiot cIo.N. aDEll IJ.-NfJ-ln ne ~
designated spot cotton exchanges of
the United States are scheduled 10
complete the voting Tuesday on rules
for the fixation of differences in the
tenderable value of spot cotton which
if adopted will have far-reaching con-
sequences on the cotton industry from
| the farmer TO the consumer. cotton
brokers here say.
The new rules for the fixing of
! values of spot cotton to be delivered
on future contracts were proposed by
the bureau of agricultural economics.
Department of Agriculture, following
a meeting of representatives of the
principal cotton exchanges at New
Orleans March 20.
Briefly the proposed regulations
follow:
PROPOSED RULES. O..
All members of each exchange would
be compelled TO furnish the quotations
committee of their respective organ-
izations a complete list of all trans
actions completed the day previous to
the fixing of differences, together with
the quality. staple, number of bales.
prices and terms. If no trades were
made, then any bona fide bids or of
fers must be reported.
Actual samples of bales bought or
sold would be made available 10 the
quotations committee of the exchange
upon request.
That the quotations committee shall
make its daily basis price on running
lots of 30 bales delivered in the city
at which the exchange is located and
all quotations on staple values shall
be based on cotton of not less than
seven-eighths of an inch and not more
than one inch in length.
MUST MAKE REPORT.
The quotations committee would be
required to render a report every
trading day showing its determine
ton of the value of middling cotton
and the differences in value Of grades
below and above the middling basis.
II member of the committee dis
agrees with the majority. a minority
report must be made with the rea-
son therefor.
The bureau Of agricultural econom-
les representatives, shall be admitted
to meetings of the quotations commit
tee and shall have full access to all
records of the committee and the ex-
change.
TEXANS OBJECT.
Well informed members of the
Houston cotton exchange point out
various difficulties in the practical
application Of the proposals Of the
government agency. 1t is believed in
some quarters that the plan would, in
effect, mean the fixing of the value of
spot cotton by the future market.
while under present conditions. the fu-
ture value is fixed by the actual cot
ton.
1t is pointed out that the proposed
regulations requiring members Of cx-
changes to report the actual buying
and selling price of cotton would
mean the advertising TO the trade at
large Of the benefits accruing To in
dividuals and firms through advan-
tageOus purchases or sales. In other |
words it is felt that each members
business would be wide open in every |
detail to competitors.
WORK TOO TECHNICAL.
Another objection among exchange
members here is the proposed rule re-
quiring the fixing of values on the |
basis of even running lots. 1t is point |
ed out that cotton can be rendered on |
future contracts in a number OF |
grades and staples while under the
ruling, it is claimed, only |
cOttOns Of a given grade and staple |
may be rendered on future contracts |
An active member Of the local ex.
change said today that in his opinion
it would be difficult to induce mem
bers to serve on the quotations CON.
mittee because Of the time element
He asserts that price changes are
mos. numerous during the fall, or buy
ing months, and that few, if any, mem
beers could spare the time necessary 20
the involved and technical work re-
luired under the proposed ruling.
PURSE STOLEN.
4. n.pfainipv RAE