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 was written. 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 of the market. The spinner 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 to the 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. 
