Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-03-24
FRISKY FUTURES.
What Business Men Think Of the Bill
to Tax Dealers One Thousand
Dollars.
1t viii Drive Cotton Buyers Away and
Cripple Every Branch Of Our
Trade.

The bill now before the Legislature to tax
dealers in futures $1,000 is the chief topic OF
conversation among commercial men. An
APPEAL reporter Yesterday made reconnois-
gance on Front street and interviewed
number Of them. They expressed 10 every
instance disapprobztion of the bill and the
conviction that its passage would work seri-
Gus injury to the interests Of the city. Their
comments on the position taken by the
Shelby county Legislators were anything but
complimentary, the most charitable opinion
being that it was the result oil ignorance.
Mr. W. B. MALLORY,
of Mallory, Crawford & Co., said the tax YVES
all we'll enough if ii was TO be paid by those
whose transactions began and ended 10 spec
ulation, but would b. injurious II exacted
from deslers who simply took advantage OF
The market to buy or sell actual goods Tor
future delivery.
Mr.. Crawford declined to be interviewed,
but said he thought the bill was lick at the
bucket shops.
Mr.. II. FURsTENHEIH,
OF Furstenheim & Wexford, IVES opposed TO
the bill in toto. Like Mr.. Mallory, he thought
it was calcuia ted TO harm the Interests OF
Memphis. All other commercial cities OF
suy i'm portance bought and sold futures, and
For example, he said, L have a country Gus
toner who writes me 10 September that
he will ship me 100 bales OF cotton about the
lat of December. He is afraid that the
price will decline, and asks 10 sell for
him 100 bales in New York or Liverpool to
protect him against loss. This | eau do to
mis- advantage, and to my own, if he owes me
ANYTHING. In the same way can buy meat
or produce when the price is down, for de-
livery at a time when my experience teaches
me it will be up. 10 such case only can l
compete with merchants ia rival msrk-ts
who are reaching for trade iu the Memphis
district. This is not gambling, but legiti-
mate merchautie transaction.
Mr. JOHN W. DILLARp,
OF billiard & CO flo, expressed himself in the
same strain. He thought the tax would
operate TO cripple the cotton buyers and
thereby work dsmsge 10 Memphis mereh ants
and the Gotten producer. Before the future
system came into vogue merchants had to
hunt up buyers, and when the market had
downward tendency were compelled TO make
concessions in order 10 fleet sale. Buyers
could now afford TO operate at any stage Of
the market because they had the means OF
protecting their purch asses by selling futures
against them The tax would drive most of
The buyers away, and thus deprive our home
people of their present opportunities to sci
at any time and at full prices. He confined
himself 10 its effect upon cotton, becsuse cot
ton was the basis OF our trade.
Mr. ROBERT wooLFENDEN,
of Watson & Hill, the well-knoWn cotton
buyers, fully sustained the points taken by
Msssrs Fursenheim and billiard. He said !:
ave (the frm) have bought up to this time
about 25, 900 bales, and on falling market
This We could never have done without the
advantage of selling against our purchases
elsewhere, as about ak weeks must elapse be-
fore shipment of cotton can reach Liver
pool, and it the staple were weak We could
not sfford to take large chances OF further
decline Our operstioDs would therefore be
cut down in proportion to the risk incurred.
As il is we protect the cotton In hand or IN
transit by selling the same grsdes for a
/ month when il is quoted his her. For exam
pie, Liverpool to-dsy quotes June and July
| deliveries at s 46 64j, and spots at 40 Cad,
| Leaving the buyer a margin of SD upon
| which TO operate. Besid 8, under this future
system, we can buy all qualities Of cotton,
| which we could not do without it. Formerly
| a buyer was limited TO the grade ordered by
| bis house. If low middling WIS wanted
he threw out other grades on a
| factors table or left it. Now he
can take the whole able if he feels disposed,
and telegraph the house 10 sell the grades
not ordered for come month that offers pro-
! tective margin. The option afforded the
buyer enables the factor to dispose of the
cotton in his hands mere readily, to the adj
| vantage OF himself and his customers. We
| are now taxed $50 year for license aud two
and hall per cent. on our commissions
the last burden not imposed any where else
| The imposition of further tax of $1,000
| would cause our removal 10 some Other
"a arket or compel US 10 get even by paying
i less fCr cotton"