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Tendency of errors in differences to increase discount in contract price___
Importance of maintaining parity between spot and contract prices___
Maintenance of parity essential to proper conduct of “hedging” transac- tions_____.
Alleged correction of errors by discount in contract price_
Effect of errors in differences on sellers of contracts___
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Heavy losses due to New York revision of November, 1906–
Alleged conspiracy in the New York revision of November, 1906.
Other alleged abuses of power by revision committees___
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Disturbances of parity between spot and contract prices in the New York
market a frequent occurrence_.
Disturbances of margin less severe under commercial-difference system__
Effect of errors in differences on stock of cotton at New York,.
Necessity of a return to a commercial basis in the New York market.
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CHAPTER I.-GENERAL NATURE OF FUTURE TRADING AND FUNC-
Legality of future contracts___.
Distinction between "options" and future contracts_-
3. Future system as a means of insurance against risks of trans-
actions in actual cotton-The "hedging" function_-_-
Importance of purely speculative operations__
4. Organization and functions of cotton exchanges.
Nature of cotton exchanges...---
An exchange a great market place----
CHAPTER II.-NATURE OF FUTURE CONTRACTS IN COTTON.
Sec. 1. "Basis" character of such contracts.--.
2. Grades of cotton---_.
Difficulties in grading cotton.
3. Method of classification in New Orleans....
4. Method of classification in New York-----
Page.
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Actual method of handling cotton at New York intended for
classification
Inspection fund of the New York Cotton Exchange_
Comparison of New York and New Orleans methods of classi-
fication
5. Method of establishing differences between grades of cotton de-
livered on contract in New Orleans_.
Allowance for staple cotton_-_-
Special characteristics of spot quotations_
6. Method of establishing differences in New York---
7. Method of establishing differences in Liverpool---
Allowance for extra staple in Liverpool_.
S. General method of establishing spot quotations in southern mar-
Earlier methods of establishing differences in New York.
9. Special characteristics of basis contracts_.
Price of contracts ordinarily below price of spot middling-
Surplus grades ordinarily those tendered on contract__
Seller's option as to date of delivery--
CHAPTER III.-EFFECT OF ERRORS IN DIFFERENCES ON PARITY
BETWEEN SPOT AND CONTRACT PRICES.
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I. IMPORTANCE OF MAINTAINING A NORMAL PARITY BETWEEN THE TWO PRICES.
Sec. 1. Introductory.
101.
2: Particular importance of maintaining a normal parity between
the spot and contract prices in the case of hedging operations__
Buying hedges__.
3. Importance of maintaining a normal parity from the standpoint of
the speculator..
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