The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-19
TIE ANII-oPFIoNs BILL.
What Leading Cotton Factors and
Buyers Say about It.

What Leading Cotton Factors and
Buyers Say about It.
There is comparatively little interest
among Bay street merchants in the anti
ontions bill now before the subcommittee of
the Senate judiciary committee. es the mat
ter on several occasions before has been be-
fore the public and has been discussed fully.
It is the consensus of opinion among the
cotton factors, however. that the trade would,
70 some extent, be benefited by the passage of
4he bill. It is claimed by others. however,
That the passage of such law in this coun-
trv would be of no benefit TO the trade or
the planters any more than changing the
base of operations from New York, except
20 give absolute control in Liverpool where,
as It is now. one acts, to some extent, as a
check on the other.
One factor said yesterday the passage
of this bill would be a bad
precedent, as the law could never be
enforced in It's entirety and the failure TO
carry out its provisions would naturally, of
course, create a contempt for all laws more
or less The law Of Georgia goes about as
far as it can go in this respect, inasmuch as
IL declares that such transactions are simply
gambling and no debts can be collected or
Judgments obtained on account OF them.
Another well known factor said there is
no doubt that dealings in futures are at
times Of great benefit to the cotton trade,
but it is oftener the case that they are detri-
mental to a great majority OF those in
teres.ed, and especially TO planters. and for
this reason he favored the bill. As for the
benefits accruing by the present system of
trading in futures especially, it is more than
counterbalanced by the i'll effects engenderei
by speculation, and the crimes which ii
leads some injudicious operator to commit
and which are always suggested TO him as
he sees, not alone his profits in such trans
actions, but his margins as we'll. go glimmer-
ing, or to use the latest slang, tout Of sight"
The same factor said there are a number
of clerks who dabble in this business. which
they know well enough is wrong, as they
cannot afford to be on the losing side, upon
which majority OF them can be found at
the end of the deal. For instance, to begin
a contract one has to go in debt Is cents Yer
bale for every bale he margins. either as a
bear or bull, and he is never clear of this
debt until there is profit in bis venture
and he takes advantage Of it. If he is on
the losing side sometimes he hedges or strad-
dies the market to save himself, but all the
time this little keno business goes on.
'This sort OK thing is bad for clerks, ems
ployes and merchants In many ways. If it
be clerk it is bound to injure him. While
he conceals it for while, it is always found
out and the prudent merchant never fails
W hO6p 10 al uOuOA1s L udN0 uOb4Ceu
particularly during my few years of bust
ness that almost invariably whenever the
south is bullish the north is bearish, and of
course the lamb is feeced."
A prominent buyer said: "The options
market offers great assistance in
bearing the market, and out
side of the legitimate trade
it allows other people without cotton to
sell that which they had not, thereby inter-
TariDO with the leOitirna a rra 10 oh col
in cotton exclusively and is compelled at
times to take advantage of the options
market to save itself. If the speculation is
confined TO the actual needs of the trade it
is "A benefit, but not otherwi
Another cotton factor said it would be
as well for the cotton trade If the natural
law of supply and demand could control at
all times, which, however, it does not. as at
times when the planter should receive a
good price for his product he does not until
after the bulk OF the crop is marketed
This is the result of manipulation by the
outsider. who has no interest either way
except to juggle the market for his own
benefit.
President Minis of the cotton exchange
forwarded the following letter to Senators
Gordon and Colquitt and Representative
Lester last night:
SAVANNAH COTTON EXCHANGE,
SAVANNAH, GA, Feb. IL. 1892 I
SIR-At a meeting of the board of directors Of
the Savannah Cotton Exchange, held this day
1t was the unanimous sense Of the board that
House bill No, $685. introduced by Representa-
tive Hatch Of Missouri Senate bill No 6S5, in
troduced by Senator Washburn of Minnesota
and Senate bill No. 1868, introduced by Senator
PETER of Kansas. if passed would be of very
great injury to the agricultural and commercial
industries Of the country by prohibiting the
convenient and necessary method of dealing in
futures, and was directed to request our sen
ators and representatives in congress to vote
and use their influence against the passage of
said bills. IF. MINIS,
j. MERRIHEw. President.
Secretary and Superintendent