COTTON 241 
During the time consumed in the operations from 
raw material to finished product, capital is locked 
up with no return until the final sale. To meet 
daily and monthly requirements, the spinner se- 
cures his cotton. So close is the margin of profit 
that any material increase in price in the raw shape 
may act to his disadvantage, even to such an extent 
as to wipe out his profits entirely. ‘To protect 
these profits he can purchase contracts for future 
delivery which will enable him to figure actual cost 
in his estimates—just what price the raw product 
will command at some future time. It insures him 
on actual cost, protects him if an advance does take 
place. All the while, too, he has not been obliged 
to secure large quantities of cotton to be stored and 
looked after from day to day; he is saved all this 
trouble, risk, and expense. 
Briefly then, the contract for cotton for future 
delivery enables the spinner to secure his raw ma- 
terial any time during the year, and safeguards 
him against a time, if such should come, when it 
sells for an abnormally high price. It should be 
remembered, however, that the market may be 
so manipulated as to force prices for future delivery 
to such heights as to threaten his profits, unless he 
has continued to insure and protect his takings by 
constant buying and selling, thus putting him on 
the defensive and in the tread-mill of speculation 
as well. These constant fluctuations day after day 
the year round are the evil influences at work, often 
to the spinner’s advantage and as often to his 
disadvantage. 
WHAT OF THE PRODUCER? 
The producer may at times imagine that trading 
