20 BULLETIN 1444, U. S. DEPARTMENT OF AGRICULTURE 
shipper. In the South, where there is opportunity for closer re- 
lationship between the shipper and the mill buyer, the services of 
the dealers are not so urgently needed. 
METHODS OF SELLING IN SPINNERS' MARKETS 
Cotton is offered for sale in spinners' markets in America in even- 
running lots of 50 or 100 bales, or even more. These lots are usually 
made up according to some type. Cotton may be sold in these 
markets according to Government standards, but it is rarely wholly 
so sold. In case of the longer staples it is often sold on actual 
sample. Most of the cotton sold to New England mills is sold by 
type. The type may be made up by the mill to be matched by the 
seller: but more often the seller is made acquainted with the mill's 
needs and, in the light of such knowledge, he makes up and submits 
types. These types are matched year after year as nearly as crop 
conditions permit. Sometimes they are described partly according 
to Government standards and partly by type. 
A mill may wish Strict Middling in color, Middling in leaf, 1%- 
inch staple, and good hard-bodied cotton equal to type BANG. 
Here the only element not standardized is the character, and it alone 
may be referred to the type for settlement. 
Each mill has its own method of rating shipments. The usual 
points considered are (1) Staple length, (2) working quality, uni- 
formity of fibers, or character; (3) quantity of foreign material; and 
(4) color. Each of these items is rated differently, depending on 
the particular use to which the cotton is to be put. Each lot is rated 
on the basis of 100 per cent. If some of the bales fall below in any 
point, a certain percentage is taken off. If some of them go over, 
a percentage is ordinarily added, but not in the same ratio as the 
subtractions. If the quality is very much better than that bought, 
it may become a liability and be discounted. Mills that want a 
particular quality of cotton may give extra credit .for a large per- 
centage of bales strictly on the type and may discount heavily where 
there is considerable variation either above or below. Some mills 
require a much higher standard of performance than others. 
In New England each mill biryer has a list of dealers and mer- 
chants' representatives from whom he ordinarily buys. In the busy 
season these sellers call at the treasurer's office twice each day. 
Mills prefer to buy cotton to cover orders for goods, but if cotton 
is cheap, they may buy as a speculation. If a desirable lot of cotton 
is offered at an attractive price, the mill may buy it and sell a hedge 
against it. The mill may buy for immediate delivery, but usually 
it buys for shipment in a designated forward month or months. 
The New England dealer, who was formerly a broker and is still 
sometimes incorrectly so designated, represents one or more southern 
shippers who may have similar dealer representatives in other mar- 
kets. Each dealer thus has several lots of cotton for sale, and each 
one of the lots may be for sale in other markets as well. The 
shipper makes two kinds of offers to the dealer, and the dealer in 
turn to the spinner. He offers cotton either " firm " or " subject to 
confirmation." A firm offer is good until the close of the day and 
