240 COTTON 
contracts solely. ‘There has been no transfer of 
property. In fact, neither party during any part 
of the transaction has owned any property—except 
the paper on which the contract waswritten. ‘This 
over-trading feature is unreasonable speculation 
of the kind which works to the disadvantage of 
legitimate trade, and causes prices to be advanced 
or depressed without a single act to justify the 
change in right and morals. 
On the other hand, as we have previously sug- 
gested, cotton contracts for future delivery may be 
helpful to the producer, the manufacturer and the 
merchant, since they tend to distribute the move- 
ment of cotton through a period of twelve months 
instead of through a few months only, as might 
be the case now were cotton sold and moved 
immediately upon its being gathered. The pro- 
ducer would naturally suffer because of the con- 
gested condition ofthe market. Thespinner would 
profit, since this congested condition would seem 
to be to his advantage; but in case the spinner 
should under-buy, he would find it necessary to 
pay excessive prices—because the annual market 
season would be closed and the speculator would 
hold the key tothe door. Under the present system 
the market is open throughout the twelve months— 
a condition advantageous alike to both producer 
and consumer. 
THE EXCHANGE AND THE SPINNER 
The Cotton Exchange has therefore, a side fa- 
vorable to the spinner. With him cotton is a real- 
ity: he purchases it for use in his spinning opera- 
tions, and in the course of six, eight, or ten months 
it will be purchased by the ultimate consumer. 
