Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-04
COMMODITY MARTS
ATTRACT TRADERS
MoIaSseS Exchange Is Latest
Addition to. List of
Markets.
By BRADLEY w. TRENT.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, February 4.-The first
trading in molasses in an organized fu-
lures market, which took place Monday
on the Coffee and Sugar Exchange here,
not only calls attention to the growing
importance of that commodity, but en-
phasizes the value of organized trading
and recalls some parallels in local COM
modify marts.
Blackstrap molasses, one of the ear
lest articles dealt in on local markets,
along with meal and slaves, when New
York in pre-revolutionary DAYS was con-
Quoting a big rum trade with the West
Indies, is now an important article of
world commerce. Last year the world
produced 1,200,000,000 gallons CT mo-
laSses, of which the United States used
about one-third.
Uses Are Varied.
Although many still think of mo-
laSSes as merely something that children
spread on bread, it is the great by
product of the modern sugar mill and
forms the raw material OF many indus
tries. In war molasSeS is used in mu-
milton making. In peace time molaSses
is used in industrial alcohol. cattle feed
and shoe polish, to mention merely a
few Of its uses.
United States Industrial Alcohol Co.,
leading producer Of industrial or de-
natured alcohol in this country, utiliSes
about 100000 900 gallons of molasses
each year. It requires on the average
about 2.6 gallons of molassss i'll each
gallon of industrial alcohol. The Gold
Dust Corporation is another concern
interested in molasses. as its various
subsidiaries making shoe polish---F. F.
Daley Corporation, Now Two-in-One,
Shinola tBixby Corporation and Two
in-One PolisheS, Ltd.-need that COM
modify.
Since 1925 prices of molasses I. o. b.
Cuba have ranged from about 3 cents
to cents gallon. New Orleans prices
naturally are higher than Cuban quo
tations, due to the cost of transport,
| insurance and miscellaneous charges
At times, however there has been virtu-
ally no market so that official quota
tions and records are lacking.
Today. for instance, the market for
blackstrap molasseS futures opened
quiet and nominally unchanged. March
was quoted at 4.65, May 4.77-4.85, July
4.78-4.90 and January 490-4.95. This
opening was not discouraging in point
of volume, for members OF the New
York Coffee and Sugar Exchange ex-
pect to take some time in getting
world futures market for their lat:st
commodity. The contract in which the
commodity is traded in calls for the
delivery EOLS VI Z75UOO Bo4lOLlo Ii ANSN
Orleans.
Object Of Trading.
The average business man might
wonder why futures trading is started
| now, with all commodities so de-
pressed. The answer is, of course,
that the present situation will not last
With people all over the world pro-
ducing basic commodities without re-
ward for their labor, natural economic
laws soon will reduce production to
such an extent that prices will improve.
r. H. Pike, jr.. president of the New
York Coffee & Sugar Exchange, COM
menting on the beginnings of the
sugar market here, said today: When
sugar trading opened on December is,
1914, not. single lot was traded in
at the OPENING, and from that date to
! the end of the year less than hun
bred lots were DONE"
Sugar sales on the exchange during
| 1880 consisted of 1851 $50 tons OF
| No. / contract and 1880 tons of Ne.
2 contract, according to the annual
report. In this commodity the local
market isNone of the greatest in the
world.
(Copyright, 1919