e producers, or when the
original buyer is a mere local operator. One of the most important
operations, commercially as well as industrially, is the grading of
cotton, which takes place as a rule at the compress point under the
supervision of the buyer, who employs experts for this purpose. Cotton
mills as a rule operate on certain specified grades of cotton, and any
deviation from this grade means either a readjustment of machinery or
disgruntled and dissatisfied employes, or, perhaps, an inability to fill
an order for cloth of certain types. The manufacturer will usually refuse
to accept any grades save those he has specifically commissioned the
buyer to obtain for him. The actual grades, and the terms describing them
have been established by the United States Government, and are rigidly
adhered to by the trade. Prices are established on the grade known as
"middling" as a basis, and variation from this basis is taken up in the
price.

Standardization of
American Cotton Grades

The grades, for white cotton, as established by usage and confirmed by
Governmental standardization are:

Middling Fair Strict Low Middling
Strict Good Middling Low Middling
Good Middling Strict Good Ordinary
Strict Middling Good Ordinary
Middling

For yellow tinged stock the grades are:

Strict Good Middling Middling
Good Middling Strict Low Middling
Strict Middling Low Middling

For yellow stained and blue stained there are only three grades quoted,
good middling, strict middling, and middling, the inference here being
that stained cotton below the basic grade, is unsuited for most
commercial purposes.

With cotton selling around thirty cents a pound, the difference between
the cost per pound of middling fair, the highest market grade of white
cotton, and good ordinary, the lowest market grade, may amount to twelve
or thirteen cents. The value of the shipment, and its use as a basis for
credit, is dependent upon its proper classification.

The large cotton buyers purchase for the account of mills, for exporters,
or for clients abroad. They are usually firms of strong financial
standing, and as we have seen, they are bankers or factors themselves,
financing growers or small buyers during the growing of the crop, and the
first concentration of the cotton. But when the large movement of cotton
is on, it is frequently necessary that they, like the lo