COTTON 
241 
During the time consumied 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 pro)fits entirely. To protect 
these profits he can purchase contracts for future 
delivery which will enablle him to figure actual cost 
in his estimates — just wlhat price the raw product 
will command at some fuiture time. It insures him 
on actual cost, protects hdm 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 expemse. 
Briefly then, the contract for cotton for future 
delivery enables the spinmer to secure his raw ma- 
terial any time during the year, and safeguards 
him against a time, if smch should come, when it 
sells for an abnormally high price. It should be 
remembered, however, that the market may be 
so manipulated as to forcse 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 settling, thus putting him on 
the defensive and in the tread-mill of speculation 
as well. These constantt fluctuations day after day 
the year round are the evdl influences at work, often 
to the spinner's advanttage and as often to his 
disadvantage. 
WHAT OF TEIE PRODUCER? 
The producer may at times imagine that trading 
