COTTON IN EGYPT AND THE SUDAN. 107 



5 per cent, of the total exports, and have no appreciable influence^on 

 the fixing of the prices. 



German spinners have, up to the present, been also obliged 

 to make use of the Liverpool arbitration, and in some few cases, 

 have samples drawn from every fifth bale on arrival of the cotton at 

 the European port. It is admitted that the arbitration proceedings 

 of Liverpool are generally reliable, and up to the present are prefer- 

 able to arbitrations taking place at Bremen, because by far more 

 Egyptian cotton is dealt with in Liverpool, and therefore there are 

 more competent experts at Tiand there than in Bremen, which does 

 not possess any special classifier for Egyptian cotton. Nevertheless, 

 one must agree that an arbitration in Bremen would be absolutely 

 impartial, because there the classifier is the paid official of the Cotton 

 Exchange, and at the time of arbitrating he does not know the 

 names of the parties concerned in the arbitration, whilst in Liverpool 

 the arbitrators are appointed by the vendor and purchaser and act as 

 representatives of their respective parties, and the victory is carried 

 off by the one who displays the greater cleverness, just as in most 

 of the law-suits. 



The conditions of the Bremen Cotton Exchange are, except for 

 arbitration, valid for the contracts in Egyptian cotton for German 

 spinners. 



The seller in Alexandria covers himself in his sales under future 

 contracts, generally by purchasing from a broker corresponding 

 counter contracts on the Alexandria Produce Exchange, in order to 

 avoid risk arising from these transactions, which is very consider- 

 able. 



As Egypt is connected with the world's cables at Alexandria, 

 Port Said and Suez by the Eastern Telegraph Company, the quota- 

 tions for Egyptian cotton are telegraphed daily to the persons 

 interested. 



The quotations are sent to Europe both for prompt delivery and 

 for delivery during later months, inclusive of contracts for the next 

 harvest, either f.o.b. , that is free on board at Alexandria, in 

 Pfennigs for ^ kg., in francs for 50 kg., and in pence for one English 

 Ib. ; or to Austria and to the countries purchasing cotton vid Austria, 

 free on wagon at Trieste with an addition in price of 1 Pfennig per 

 Ib. ; or, finally, c.i.f. , that is, including cost, insurance, and freight, 

 with the following additions to the Alexandria f.o.b. price : for 

 Hamburg H Pfennig, Liverpool |d., Hull and Odessa if\d. , St. 

 Petersburg ^Vd., Marseilles, Genoa, Venice, and Naples 1 franc, 

 Antwerp 1^ fr. , Dunkirk, Havre, and Barcelona 1^ fr. more. 



The exact rate for conversion of a kantar into kg. is 44'928, and 

 in English Ibs. 99'049,223. It is customary, however, when invoicing 

 in foreign weights of course, taking into account in the calcula- 

 tion of the price to give an advantage to the spinners by reckoning 

 the kantar equal to 44'5 kg. or 98'251bs. 



The exporters claim from their customers a latitude or franchise 

 of \ per cent, on the gross loading weight, compared to the gross 

 invoice weight. 



The value of the invoice is. as far as Continental spinners are 

 concerned, covered by three months' drafts, or even 6 months', on 

 Europe on bank credits; only transactions with England, 



