SERVICES I2C COTTON MARKETING 
33 
frequently they buy for forward delivery according to their esti- 
mated requirements. In the first instance the mill has the responsi- 
bility of financing the raw cotton. In the second case the merchant 
carries it. TThere the cotton merchants wish to cooperate in financ- 
ing the mill's stock of cotton, they make use of the sales note. It is 
drawn by the buyer in favor of the seller of the cotton and, when 
indorsed by the seller and accompanied by the warehouse receipts, 
is readily discountable. The bank surrenders the warehouse receipts 
to the mill as it uses and pays for the cotton. 
Figure 9 shows monthly mill stocks of cotton and their estimated 
value for three consecutive crop years. 
mill Stocks of cotton and their estimated 
VALUE, BY MONTHS, August. 1920 -July, 1923 
BALES 
t-: .s-'.;s 
2,000 
1,900 
1,800 
1,700 
1,600 
1,500 
IA00 
1.300 
1,200 
1,100 
1,000 
900 
A 
1 ST\ 
/ / 
/ i 
1 1 
- 
/ ' 
It 
/ \ s*.Mit/Stocks\ 
ji 
h 
It 
1 
1 
i 
It Esr,mat e d 
1 f "*V 
//'X A J 
\\ 
t ftS x 
% / \ 
y *-v\ I 
t / \ 
\ / \ 1 
\^**l 
\ J *---%. * 
! ! 
.... LJ 
::__- = £ 
MILLIONS. 
280 
260 
240 
220 
200 
I 80 
I 50 
140 
I 20 
I 00 
80 
60 
I F M. A. M. J. J. 
1920 
D. J. F M. A, M. J. J. A. S. 0. N. D. J. F M. 
1921 1922 
A. M. J. J. A. 
Fig. 9. — Volume and estimated value of stocks held by mills from month to 
month during three consecutive seasons. The mill stocks are from the reports 
of the Bureau of the Census. The value is obtained by multiplying the stocks 
by the average spot price of Middling in New York for the month, consider- 
ing bales as averaging 478 pounds net 
TYPES OF MARKET INFORMATION AND THEIR SOURCES 
Cotton-market information consists of those facts which are cal- 
culated to enable those interested in the cotton market to act intelli- 
gently. These facts may be classified as relating to (1) demand. (2) 
supply. (3) prices. (4) functions and relationships of the markets, 
(5) personnel of buyers and sellers. (6) cotton-handling methods 
and facilities. (7) finances, and (8) insurance. 
An agency of information may originate the information, or may 
dispense it. or the same agency may perform both services. 
Cotton-market information should be as nearly world-wide as pos- 
sible. The farmer who judges the world's supply from the stand- 
point of his own field. State, or even Xation, may be grossly misled. 
The same is true with regard to demand, or any of the other groups 
of factors. 
