102,588

The wealth of the world--at least up to the time of the Great War--was
constantly increasing and while there is little likelihood that the
demand for the coarser grades of goods will fall off, the need for finer
stuffs, not only in the United States, but abroad, is constantly growing.
The greatest development of the South is probably still to come.

The locations of the world's cotton markets have been dictated by the
location of the growing fields and the manufacturing centers. Thus we
find that the great raw cotton markets of the United States are in New
York and New Orleans. In Europe they are at Liverpool, Bremen and Havre.
Because of conditions imposed by the German government, the Bremen market
is largely dependent upon New York and Liverpool. The other great world
market is that of Alexandria, which, although it handles but a
comparatively small part of the world's crop, is important on account of
the quality of the staple which makes up the Egyptian bale.

The two chief American markets, New York and New Orleans, are sharply
differentiated. The New Orleans market is a true trader's market. The
great bulk of the sales made on the New Orleans floor are bona-fide
sales, in which cotton actually changes hands. The New York market on the
other hand is a merchants' and manufacturers' market, in which business
transactions are protected against loss by the purchase or sale of
"futures", though, of course, there is always a large amount of
speculating. Delivery is rarely demanded. The function of the exchange,
therefore, is largely that of insurance. The intricacies of this market
will be discussed later.

CHAPTER III

The Raw Cotton Market

Because of the ramifications of the cotton industry, the cotton itself,
on its devious way from planter to consumer, is successively the concern
of a series of individuals and corporations. The immense value of the
product, the expense of growing, handling, manufacturing, and selling it
all mean that great quantities of capital are utilized in bringing it at
last to its final consumer. At any stage of the process, cotton
represents no inconsiderable part of the nation's wealth, and to expedite
its journey, merchandising and financial methods of a highly specialized
technique have been developed. There are two very clearly marked stages
in this process. The first has to do with the raw cotton, as it goes from
planter to mill. The second has to do with the jou