106 COTTON IN EGYPT AND THE SUDAN. 



from Upper Egypt, including Fayoum, is only to be substituted on a 

 reduction of price, which is fixed by the Committee of the Associa- 

 tion, jointly with the Committee of the Produce brokers, within the 

 last three days of each month, and which is in force for the succeed- 

 ing month. If the contract refers to Upper Egyptian cotton, the 

 corresponding class of Mit Afifi may be supplied, but without any 

 right to indemnity. Sudan cotton is, since the season 1912/13, 

 deliverable under contracts for other cotton, but the Committee of 

 the Association reserves to itself the right to grant a reduction of price 

 to the buyer. The cotton must be hydraulically pressed, if it is steam 

 pressed, the expenses of pressing cannot be claimed, and a penalty of 

 10 P.T. per kantar is imposed in addition. Several of these con- 

 ditions are subject to changes from time to time. 



Cotton sold under " future " contract must be placed at the 

 disposal of the purchaser in the month stipulated within a 

 latitude from the 1st to the 22nd, and the seller is entitled to deliver 

 each lot of 250 kantars in two different kinds of cotton which are 

 tenderable. The bales taken over by the buyer are at once marked 

 by him, and payment follows on the dates agreed upon for each week, 

 which are published at the beginning of the year. The goods in 

 question must be taken over by the 10th of the next month at the 

 latest, if this date is exceeded the buyer has to pay storage rent and 

 fire insurance, each amounting to 1 P.T. per day per kantar. 



Each contract is regarded as terminated on the delivery of the 

 warehouse certificate for the cotton sold. If the delivery of the 

 cotton has not been effected before the 22nd of the month, the buyer 

 has the right to apply to the Committee of the Produce Exchange, 

 and through their medium to have the lot of cotton in question pur- 

 chased for the account, and at the risk of the seller. Both parties 

 have also the right, in case the difference arising from the transaction 

 is not duly paid, to liquidate the transaction through the medium of 

 the Committee of the Produce Exchange. 



Arbitration on cotton delivered is more often the rule than the 

 exception. 



All differences of opinion arising at the time of delivery are, as 

 already mentioned, finally settled by the Committee of the General 

 Produce Association. 



Under the term "free station," future transactions are also 

 concluded in Minet-el-Bassal ; these, however, have strict reference 

 to a mostly shorter and definitely stipulated period and to the 

 quality and class to be delivered, contrary to the usual " future " 

 transactions, and these contracts therefore form no article of com- 

 merce. 



" Future " transactions in Egyptian cotton can only be dealt, 

 besides in Alexandria, on the Liverpool market, the standard there 

 also being " fully good fair brown," and the quotations being in 

 pence andy^of a penny per English pound, delivery in Liverpool; 

 on the Continent of Europe there are no " future " Exchanges for 

 Egyptian cotton, and for arbitrations Liverpool is the only Euro- 

 pean market ; it is the only town where stocks of Egyptian cotton 

 are held, among which are large consignments, especially from Greek 

 firms in Alexandria. These cotton consignments coming into Liver- 

 pool embrace all varieties, but they amount altogether only to about 



