The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-04-14

exchange on an honest and legitimate basis. Il
seems 20 be a communicable step.
The cotton trade of the United States has been
made well acquainted with the class tot evils
which the promoters of the new Liverpool e1'
change propose u co1eect for the English trade.
Ii is obviously inconsistent for man 10 assume
the dual characters of a commission merchant
and dealer or Spectator on his own account
when he assumes obligations 20 a customer he
disqualifes himself for honestly operating on
his own account and vice versa such man
places himself In a false and questionable peSi.
ton, and there Is no doubt that trsaehery and
is also no doubt that the New York cotton eN'
change is frequently, in almost every year, ar
raycd against the great body OF its patrons
through combinations and rings OF brokers and
so-oalled commission merchants, who unite
to capture the margin deposits with which
they have been collectively intrusted
This Is strong and plain as il should
be. IL is contrary TO common tntell-
gence and reason 10 suppose that an association
OF commission merchants and brokers, who may
be also spectators on their own account, could
possibly avoid such abuses. To suppose the con.
irary is to suppose that gambler can be trusted
TO play the hand of his adversary honestly
against himself with the stakes In sight The
men who could ACCEPT such an eqaivoeal posi-
ton are the very men who would be most certain
TO abuse the trust and play their adversarys
cards TO their own advantage. II would not be
didicnlt TO write out u list Of New York com.
are generally credited with having been actively
engaged In specializing against the interests of
patrons for whom they were carrying heavy
lines Of Notwithstanding against them
not only their money, but also all the de-
vices, including statistical misrepresentation
that they could demand 10 the injury of those
patrons; or, in other words, to the benefit OF
themselves on the opposite side of the market.
This most shameful and iniquitous practice is
tolerated, as custom has,staled the vile flavor of
the oilense, but Il should be punished by ex-
pulsion and legal prosecution To make this
effective the practice of dealing as principal,
while receiving orders on commission, should
be thus punished In all cases. II is presumed
that the same vicious license is tolerated IN the
New Orleans cotton exchange II is probably
true, however, that many of the members OF
those exchanges, and perhaps the majority are
guiluess of the abuse we arc discussing, but
this sort Of piracy seems to be one of
the chief resources of the rank and
file OF those associations And II is to facilitate
the slaughter of the lambs, as well as to aug
ment commission profits that margin deposits
are kept at such an absurdly small percentage
of the risk as to make raids Inexpensive and
easy.
The Liverpool cotton exchange proposes other
reforms in addition to this of divorcing the bro
keragc and commission business from that of
merchants or principals, but perhaps the Amer
lean exchanges have only this evil 10 correct or
rather the correction of this evil would probably
of itself cure all the rest