Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-05-03
The Law aud Philosophy OF Flu
ture Contracts.

It bss been but comparatively
short period since the introduction Of
option or time contracts in the com
mercial world, but the system has
spread with such rapidity that it has
become 80 intermingled with all
branches OF trade, that its abolition is
next to impossible.
Its rapid spread through the various
channels of commerce, and its adoption
in nearly all civilized countries, dem
onstrates that it supplies a want.
While it may have brought with it
evils Of no small magnitude, its benefits
overcome these, and there is reason to
hope that With experience the abuses
Of the system will correct them
selves.
The Legislature and judiciary have
in this as in nearly all other innova
tons, been slow to appreciate the the
DRY Of the system, and have hampered
it with useless restrictions, which,
however, fail in practice to accomplish
any good. While this has not cur.
tailed the contract system, it has aided
in organizing commercial associations
that have built up code OF laws OF
their own-a code that is enforced
among members with an economy and
certainty that no judicial system can
possibly attain.
Mr.. Julius Aroni, Of the New Or
leans bar, has compiled an attractive
little work on the subject, reviewing
the history Of the law in the United
States and England in relation to fu.
lures. The scope Of the work could
with propriety have been enlarged sc
as to embrace a treatise on the devel.
opment Of this species Of contract, and
its relation to commerce and manu-
features. But he has nevertheless
covered a good deal Of ground anC
presented work that viii be Of in
terest to business men, attorneys
judges, and Legislators, and attrac
tive to the general reader. TIL
preface is as follows:
Since the Inauguration Of option o
time contracts on the New Orlean
: Cotton Exchange, that business ha
assumed gigantic dimensions and ha
become OF vast Importance. Cotton
which is bought here, has alread
been sold in Europe; planter, VIII
during the summer may consider tn
prices offered for fall delivery sufh
GENTLY remuneratiye, may sell his Gro
) long before it is gathered; others. VIII
I expect higher prices, purchase cotto
i to be delivered TO them months there
after, and such contracts are ofte
. settled or Cancelled long before Oh
time OF performance.
! Notwithstanding the Importance
! this branch Of commerce, such col
{ tracts have not found a place in Il
r elementary law books. Many OF Oh
{ commission merchants and brokel
{ engaged in the future business al
} uncertain whether their dealings al
5 legitimate, and like other contract
: enforceable in our courts.
' The common idea prevails amor
I. those dealing in time or future col
O tracts, that they have no sanctic
7 either in law or morality, that they al
not recognized by the courts, an
that they rest entirely for their exocl
ton and observance upon the goo
o faith Of those who operate and detl
y that class Of contracts.
y THE Supreme Court OF Louisiar
!, has not yet had occasion TO pass upc
Q this important question, which az u
suggestion Of members Of the Ne
Orleans Cotton Exchange have O.
amined. ~ 6
aTho time or future contract b
. boon discussed, considered aud a.
= Indicated upon by the highest cour
4 Of England and America, and It b
I BEEN uniformly held that contrac
a for future delivery are, upon princip!
T. undistinguishable from contracts j
the sale OF things IN esse, and iike q