PACKING AND MABKETING OF COTTON. 29 



The Tompkins certificate includes all grades that are known in 

 the classification of cotton. Those designated as " strict " are half 

 grades and those designated " rarely " and " fully " are quarter 

 grades. In the classification made by the New York Cotton Ex- 

 change November 15, 1911, and which remained in force until Septem- 

 ber 12, 1912, six full grades are designated, of which three are above 

 the basic grade, viz, good middling, middling fair, and fair; and 

 two are below basic, viz, low middling and good ordinary. In the 

 lower classifications no grade is given below low middling tinged, 

 except middling stained. The Department of Agriculture, in fixing 

 its types, provides for nine grades, of which four are above and 

 four below middling, the basic grade. In the "spot" market ,13 

 distinct grades are generally recognized, in which are included three 

 half grades above and three below middling. These grades are con- 

 fined to what is known as white cotton, excluding those grades desig- 

 nated as " tinged " and " stained." 



GRADING AND CBETmriNG. 



In 1907 the Department of Commerce and Labor, through the 

 Bureau of Corporations and by direction of the House of Representa- 

 tives, made a thorough investigation of the causes of fluctuations 

 that had recently occurred in the price of cotton and of the methods 

 of cotton exchanges in dealing in futures. The result of the investi- 

 gation was presented to Congress. It embraces more than 1,000 

 printed pages and is published in five parts. In his letter, under date 

 of May 29, 1908, submitting parts 2 and 3, Herbert Knox Smith, 

 Commissioner of Corporations, said: 



There should certainly be a system of uniform grades throughout the cotton 

 trade if possible. It would greatly simplify the business and stop a number of 

 abuses. The practical difficulties in the way of arriving at such a system are 

 considerable, and probably the best that can be done at present Is to make a 

 persistent effort to approach gradually such an ideal as near as may be. 



In the report referred to numerous men actively engaged in han- 

 dling cotton are quoted on the various topics discussed, and in con- 

 nection with classification for delivery on contracts expression favor- 

 able to governmental organization and direction was given by some of 

 the persons consulted. A merchant of Savannah, Ga., is quoted as 

 follows : 



There is no reason why cotton should not be officially classed and weighed 

 bale by bale in the same manner as the quality of naval stores in the South is 

 determined by official classers whose marks are not allowed to be obliterated, 

 or as canned goods in the North and West are labeled by Government inspec- 

 tors, which labeJs can not be effaced without leading to litigation. 



A merchant of Augusta, Ga., one of the largest interior markets 

 in the, country, and at which upward of 600,000 bales were handled 

 this season, said : 



We should have uniform rules to conduct the cotton business from North 

 Carolina to Texas. We should have uniform classification, and we should have 

 such rules and classification made and enforced by a convention of southern 

 exchanges so that we would deal with the manufacturers of this country and 

 Europe upon the same basis, knowing no New York or Liverpool or Bremen 

 rules, but announcing to the world the basis on which our product Is sold. We 

 would then hear nothing more of New York middling, or Liverpool middling, or 

 Augusta or Savannah or Charleston middling, but we would have one set of 

 grades agreed upon and would offer our cotton for sale upon such grades. 



