COTTON FIBRE 51 



Mr. Charles Stewart, in a paper read before the British Association 

 on September 26, 1896, explained the expressions used in these 

 sales. The standard previously accepted is the ' middling ' grade of 

 American cottons the standard of the trade : ' Any cotton expert 

 knows what " middling " American is, just as well as any ordinary 

 man knows what a shilling piece is. Cotton is classed into various 

 grades, fixed authoritatively by experts, and for which type standards Middling 

 exist. The ruling standard is always " middling." There are higher _ tlle " 

 grades, there are lower grades, but the standard is fixed.' standard. 



' Therefore, if a merchant sells a contract for future delivery, say 

 in September or October, for " middling " cotton at a given price, 

 both seller and buyer know perfectly well what they are dealing 

 with.' ' It is a safe contract for both. Such contracts, however, are 

 subject to a clause which guarantees that the seller shall not tender 

 any cotton below the next grade lower than "middling"; he may 

 tender as much higher as he pleases.' If he sells below, ' the buyer, 

 in that case, has full recourse to an arbitration on the samples of 

 the tender.' ' But observe, it must be within the limit of " low 

 middling " ; anything lower than this is rejected and a new tender 

 demanded or a penalty exacted.' 



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