The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-06-05
COLUMBIA, S. G.
Thursi lay Morning, June s. 1873.
Cotton Futures.

at present. Much complaint is made
throughout the entire cotton belt OF the
latter rains, which are regarded as un-
reasonable and calculated not only to de.
stroy the stamina OF the plant and wash
itaway in many places, but to so pro-
mote the growth OF weeds as to seriously
Interfere with the process OF cultivation.
Though it is too early to make predic.
tlons as to the extent Of the next crop,
yet tit is fact, patent to every one, that
the late frosts and excessive rains make
the present outlook anything but en-
couraging. Moreover. unless We are
shortly favored with few weeks of
comparatively dry weather, that dead
liest enemy Of the cotton plant-the
army worm--will undoubtedly put in an
appearance. and make the prospect even
gc.se than it is =. psessa.. In this city
and the region round about every one is
more or less interested in the feecy sta
pie, not only as an existing entity, but
as to its prospective future. Cotton still
retains many Of its old kingly elements.
It serves us as substitute for gold in
the settlement of foreign balances; it
brings commerce to our shores and it
contributes in q thousand ways to our
prosperity as people.
But ''cotton futures has technical
as we'll as general meaning. When ''the
trade" use these terms, they mean the
delivery OF cotton at some definite fu-
Aure period and at some fixed and stipu.
lated price. A. may be merchant and
B. planter. The latter may want as
sistance of the former, till his crop is
grown. Under these circumstances,
each may be willing to take some risks
as to the extent and character OF the
next crop; and there is certainly nothing
immoral in B.'s agreement to deliver
and AS agreement to receive so many
bales Of cotton at o given rate per
pound. Should the crop be full one,
A. may find his bargain hard and the
price too high. But. on the contrary,
should the crop be small one, B. will
have the worst of the bargain. for he is
obliged to deliver cotton at lower rate
than be could obtain for it in the open
market All such speculatlons on future
possibilities and probabilities partake
more or less of the character of gam
bling. In the special technical meaning
Of 'cotton futures" where there is no
actuul delivery of cotton. and the differ
ence between the stipulated and the our
rent price is paid in money to the losing
sreculator. the transaction is held by q
recent decision OF the United States Su.
preme Court to be in the nature Of gam
bling-a species of commerce which is
reprobated by The judiciary; and on
contracts contemplating snch transgo
tions, it is averrcd that no recovery can
be enforced.
It may be foolieh thing for man 10
contract to deliver 1000 bales OF cotton.
or 10, 900 bushels of wheat, in December
next, when he can have no correct means
Of ascertaining how the cotton or corn
market may rule at that date; but to us
the contract seems as legitimate as i. he
had contracted to build q house, or
ship, or complete SO many miles of rnil
way. In any one OF these contracts he
may make money, if circumstances favor
him, and lose money if they prove nd
verse. In all transactions based on cot
ton futures, the purchasing party might,
did the law not interfere with him, do
nand an actual delivery; and if he ac-
cepts o 1aoncyed consideration in lieu Of
such delivery, We cannot clearly SEQ # lat
right outside parties have to interfere in
the matter and prevent him. When
traced to their ultimates, oil commercial
enterprises are based rather upon ex.
pectations than on accomplished or GER
tain results. If enterprise be desirable
in any direction, we think when it takes
the form OF contract to deliver certain
number of cotton bales, or bushels OF
wheat, it is quite as much to be respect
ed, and as little assailable on the score
OF morals, as il the contract ron to de-
liver ship. or certain amount OF stocks
or bonds, at 6xed price and on future