COTTON MARKET CONDITIONS IN NORTH CAROLINA. 17 



OTHER ADVANTAGES DERIVED FROM A KNOWLEDGE OF CLASS. 



Among the other advantages derived from a definite knowledge of 

 grade before sale it was observed that auch knowledge was of consid- 

 erable importance in settlements between landlords and tenants, in 

 that it formed an equitable basis for adjustment when the rent notes 

 called for a certain number of pounds of a designated grade. Mer- 

 chants who had not handled sufficient cotton to become proficient 

 classers were able to use the class cards to advantage in the purchase 

 and sale of cotton. 



Data compiled indicated that at markets where classed cotton was 

 sold the price of unclassed cotton was approximately 10 points, or 

 50 cents, per bale higher than it was in markets where no classing 

 was done. This fact has an important bearing upon the amount of 

 money that has been saved to the cotton producers of North Carolina 

 during the seasons of 1914r-15 and 1915-16. 



CONCLUSIONS. 



The samples of cotton which were graded and stapled during the 

 1914-15 and 1915-16 seasons showed an average grade for the two 

 seasons of slightly above Middling. The use of more modern gins, 

 especially in the Coastal Plain section, would raise the average 

 grade produced in the State. The fact that only 3| per cent of the 

 cotton in the bales sampled was less than £ of an inch in length of 

 staple should be of great importance, since according to the United 

 States cotton futures act f of an inch is the shortest length tender- 

 able on future contracts. 



The producers of North Carolina are not securing the advantage 

 that proximity to the mills should give, through failure to produce 

 the lengths of staple required by them. Care in selecting varieties 

 for planting tends to improve this situation. 



Marketing conditions on the whole are better in the Piedmont 

 than in the Coastal Plain section. The grade and staple of indi- 

 vidual bales are given reasonable consideration in the purchase of 

 cotton in the Piedmont section, although inadequate premiums are 

 paid for the higher grades. In the Coastal Plain section practically 

 no distinction in price is made by the buyers between bales of differ- 

 ent lengths of staple. 



Sales made for the purpose of settling accounts are at a higher 

 rate than are cash sales on coinciding dates and grades. The range 

 of prices for credit sales is greater than the range of prices for cash 

 sales. As a rule, however, this is not the economic gain that it ap- 

 pears, as the fact undoubtedly is taken into consideration in setting 

 the price at which the goods, represented by the account, are sold. 



