The Waterbury Democrat., 1945-01-02
WAR DURATION, PRICE CONTROL
 KEY TO MARKET
BY WILLIAM T. PLUNKETT United Press staff Correspondent

united Press stair Correspondent
 New York. Jan. 2-IUP)-The key to the outlook for commodity markets in l945 is locked up in the uncertainty of The wars duration and future government price con trol policies, according to market experts.
 Legislation, highlighted by pas sage of the Bankhead amendment in revised price control bill, assur- ing a full parity" return to pro- ducers, took first place over te- mands in elevating prices to new highs in l944.
 Cotton, the outstanding perfor- mer, rose to new l6-year peak at 22:75 cents a pound. Wheat held around the l5-year peaks; steers climbed to the highest level since l937 while wool tops pressed hard against the OPA ceiling price of $l 34 a pound.
 But much of the significance of the rise was lost sight of in the welter of discussion on problems likely to arise in the postwar tran sition period. Most veXing topics included: subsidies, export quotas, disposal of war surplus material, foreign exchange regulations, crop production control, government loans, cartels, likely termination of lend-lease, and adjustment of cell ing prices.
 Seek ReOpening of Future Markets
 Agitation for resumption of trading in futures markets, as soon as possible after the war took bold step forward in the closing days of the year. A recommenda- tion at the International Business Conference at Rye, N. Y, urged their opening as means toward aiding international trade.
 The role of British people as in- ternational traders" the Hon. Mac kenzie Hay, chairman of the Brit ish Federation of Commodity and Allied Trade Associations, declared. hinges on the reestablishment of futures markets in commodities" The Federation, which is the coun- terpart of the National Association of Commodity Exchange, and AL lied Traders, Inc, here, and formed about year ago to work for re- newed futures trading, embraces 43, or practically all, of the organized markets in Britain.
 Confidence in the eventual re- opening of futures markets was seen in the steady appreciation in value of various New York eX- change memberships over the past year, even in the organizations where trading has been at stand still since shortly after Pearl Har- bor. For instance, New York Cot ton Exchange seats, from the post Pearl Harbor low of $2,700 rose to $6000. The New York Coffee and Sugar Exchange saw it's member ships rise from $350 to $2,l50; New York Cocoat Exchange from $400 to $l, 700, and Commodity Exchange, Inc, from $435 to 1900
 Some Spot Markets Restored
 In the spot markets, jute and shellacp robably had the distinc- tion of being the first commodities to go back to private enterprise. Similar steps for burlap were under discussion as the year closed. While still operating under ceiling prices, the actual handling of imports storage and distribution has been put back in private hands.
 Government floor and ceiling prices for cotton and wheat, 1t was pointed out, may provide price sta- bility at the source of supply, but processors and manufactures will need hedging facilities-a form of price insurance-againSt inventory positions. Bankers with loans out standing against raw materials in processorS' hands may be lenient now but in the event of sudden cessation of hostilities, they may calf or the laying off of some of the risk through the medium of hedging.
 Events in the Pacific in l945 could have important repercuSsions. Recapture of the Philippines and Alterations of the East Indies, bar ring heavy war-inflicted damage to plantations and machinery, could reopen new large-scale sources of supply for presently short-rationed commodities such as sugar, veget- able oils, rubber, spices. tin, tea, and hemp.