PACKING AND MARKETING OF COTTON. 



37 



Is often carelessly done, it Is easy to see how classification based on a sample 



w>. i-'' ^^^ ounces may give rise to much dissatisfaction. 



What might appear to be very unimportant conditions exert a material effect 

 upon classification. Thus, a passing cloud may influence a classer, quite un- 

 consciously, almost to the extent *f a quarter grade. When snow is on the 

 ground it is very difficult to class cotton if the light is reflected upon the cotton 

 or mto the eyes of the classer. 



RELATIVE VALUE OF GRADES IN THE NEW YORK EXCHANGE. 



The basic quality of cotton is known as middling, and all quo- 

 tations and sales are made on and from that basis. Classification is 

 made and grades are established by a committee of experts employed 

 by the New York Cotton Exchange, and the action of this committee 

 is given recognition by the trade and governs all deliveries and sales, 

 whether " spot " or " futures." The classification is made in Septem- 

 ber and November of each year, and the latter stands good until 

 September 12 of the year next following. The difference in values 

 of the several grades is fixed by the classification committee. The 

 price varies according to the supply and demand, but the values 

 fixed by the committee for grades above and below middling are 

 plus or minus the market price for middling and are permanent 

 for the time being. The differential is established by points, each 

 point being the equivalent of one one-hundredth of a cent. Thus, if 

 cotton be quoted at 10 cents per pound, fully middling, being 

 rated 15 points above middling, would command 15 cents per hun- 

 dred pounds or 75 cents per bale over a bale of middling. On the 

 other hand, for barely middling, an " off " grade, the price would 

 be 17 points below, or 85 cents per bale less than middling. 



The several grades established by the New York Cotton Exchange 

 for the year ended September, 1912, and their relative values are 

 given in the table following. The grades above middling are "on " 

 or plus, and those below are " off " or minus the current price for 

 middling, the basic quality. A column is added showing the in- 

 creased value attaching to the bale of 500 pounds according to the 

 differentials. The price for middling is placed in the table at 12 

 cents per pound, to which the differential on the basis of each point 

 being equivalent to one one-hundredth of a cent, should be added. 



Grades. 



Points 

 on (+) or 

 ofl(-). 



Increase(-(- 



or de- 

 crease (—) 

 to value of 

 bale. 



Fair 



Strict middling fair 



Middling fair 



Strict good middling 



Fully good middlmg 



Good middling 



Barely good middlmg 



Strict middling 



Fully middling -■- 



MIDDLING (12 cents per pound) . 



Barely middling 



Strict low middling 



Fully low middling 



Low middling 



Strict good ordinary 



Good ordinary 



+18.75 

 + 7.60 

 + 6.S0 

 -I- 4.00 

 + 3.40 

 + 2.80 



-^ 2.15 



+ L50 

 + .76 



- .86 



- L76 



- 2.75 



- 4.00 



- 7.00 

 -10.60 



