108 TEXTILE FIBRES. 



test, does the seller receive from the buyer so much more money than 

 the actual price of the contract. This explanation of the character of 

 the contract carried to finality, further amplified by the remark that 

 a seller who contracts to deliver to the buyer a September and/or 

 October contract is bound to fulfil his engagement on or before 31st 

 October (he may do it at his convenience upon about every alternate < 

 business day between 1st September and 31st October), or be liable 

 to a penalty, is, however, not altogether one that explains all, for this 

 reason : A man who buys futures does not, as a rule, want to provide 

 the cotton." 



Call Cotton. This is a system of buying cotton, nearly similar to 

 the buying of futures, only that a shorter period of time is allowed 

 between the bargaining and completion of the transaction. Suppose a 

 buyer, who calls on his cotton broker, finds the quality of staple that is 

 adapted to spin his counts of yarn. He would like the broker to retain this 

 quality of cotton for him, but he does not want it until that day fortnight. 

 Thus, on a certain day in 1900 (say 21st March), futures were selling 

 at 5-29, or 5d. twenty-nine sixty-fourths of a penny, before 1.45 p.m. 

 A buyer, having got his quality, says to his broker : " I will give you 

 ten on to retain me that cotton and have it ready for me fourteen 

 days hence, when you will supply me with it at the ruling price." 



If in the meantime the cotton has gone up ten points, it may count as 

 a loss to the buyer on the transaction, but if it has gone down ten points, 

 it is a probable gain ; but all this will depend on the price quoted in the 

 Liverpool Cotton Future prices on the day agreed upon for delivery of 

 the cotton. 



AVhen a buyer puts five or ten points on to secure his quality of 

 cotton, and the price runs up a good many points before the transaction 

 is closed, he may not be in the best of moods. 



This apparent loss is not always a real loss, because the buyer has 

 secured the right quality and staple he wanted for the firm he represents, 

 and he is assured that the quality of yarn they have orders for will be 

 faithfully kept up. With the steady spinners, who have gained a name 

 for their good twist and weft yarns, the quality of the cotton bought 

 is a most potent factor for keeping up a good reputation amongst 

 manufacturers, who like the spinner to be well covered. 



Call cotton has been growing into favour for some time, and it seems 

 to give very fair satisfaction to the buyer and the selling broker 

 respectively. 



Cotton Bales, Cylindrical. The bales of American cotton have, for 

 u great many years, been faulty, owing to the loose manner in which 

 they are covered. 



