The Caucasian. (Clinton, N.C.) 188?-1913, 1892-11-17
REA>osS FOR THE tyTI.pPrros
BILL.


-.t y the coalh generally, aud
81 .nch has :rt ..e.,e,i Il: attention
10! our Pallis. = ss-..,.i he pec..!,
iiIch rs grsgsSe .iseAan4=, i The
/ ! ~ hption Bal nas l<:.ling IN
tongfess- This bill is almed a,
int"re dealing. a SpTeie. u samO-
isas - sh9s 3Feat agricultural pro-
aacts IF Ibis country. which has
grown into a monstroQs evil, aud has
Inflicted .....ca.eulable damage on the
cotton growers Of the South. The
conditions # she bill are directed at
the seller Of Futures the s.short
seller, as he is called. who does not
own or have any control ef the pro.
onct he sells. liz must take out u
.'stl.ae at cost IF $1,000 yearly,
must give ii bond Of $4,000, and
must pay tax of ) cents per pound
on all cotton and 20 cents nar ausnel
on al grain Ia. ne sells as ''futnres." I"
III L designed to exterminate "fn-
tnre' gambling, but does not inter-
rIpt legitimate trade, Ne p.vsalne
IL lack ot Information, rs to / ko details
Ior thi+ Ubiquitous future business
l. the reason why our people and
press have not raised IA gsauin,e,s
and !rressistials acmani for the pass-
sge vi tae bin. We prapo.c to assist
IL supplying that information, and
10 hat end We invite the careful at
tentlon OF our readers to the extract
which Follows, taken from the print
"a y0,npr ps testimony before the
committee on agriculture of the
house of representatives. The bill
passed the house by majority of four
! u 0nr at its last session. 1t would
also have passed the senate, but the
future rings became greatly alarmed
by the action Of the house, and put
forth tremendous efforts against the
bill, which resulted in its postpone
ment by tie senate until December.
1t Is the first business that then
comes up in chat body. Its great
Importance to our people will be
t partially realized when il Is stated
that New York and New orleans
sold IL. GEO, ,0to bales of futurcs the
past s;ss.son, IN direct competition
with our crop of 100000 bales of
actual cotton, and that by uanipu-
latlons Of The Future boards prices
Yele forced down 3 cents per pound.
! The rings broke down futures to beat
those who bought futures, and ut the
same time theg broke down the price
of actual ecttCn. Our senator's and
representatives, especially the former,
must be made to know that the inter
ests OF ourpeop!e gsqutre the destrnc-
tion Of tnIs nefarious gambling sys-
ZEN by iompt passage of the anti
option bill. Read carefully this ex-
! tract:
/ t'The future business, SO called,
has certainly grown into an unspeak-
able injury TO the cotton trade, and
It's effect almost constantly has been
to deDreSs prices below their natural
level. The cotton future business is
controlled in New York, New Orleans
and Liverpool, New York having the
commanding influence in this coun-
try, A ring or syndicate control it
there. ard make the prices which are
posted on their boards, and these be-
ing wired all over the land decide the
course of the market. They have
control of all machincry of the busi-
ness, The people Of this country
have naturally strong speculative
tendence, and not knowing how the
future market is manipulated, aud
thinking the chances equal for up
ward or downward changes, and be-
lieyipg al to be fair, many Of them
buy futures, because it fakes less
money to do so, and they thus avoid
the expenses that attend carrying the
cotton itself. When they buy they
are required to put up 81 per bale
margin in hands of the New York
operators, and for every decline of
twenty one hundredths of cent they
must put up an additional 81 pei
bale; then by pressing prices down
they Get immense SUMS accumulated
in New York as margins. When
such a prize is at stake the New
York rings never allow it to get away
Having sucn complete control of the
machinery:theS continue to depress
prices, and call for additional mar.
gins, until the buyers are exhausted
or discouraged and sell out, losing
all they nave put ap.
This year is a striking ILLUSTRATION
of the evils of the future business il
cotton. When prices had declined
to S cents for milling,a great NUN
ber onr Southern merchants ant
planters, believing this price too lo'
to stand, and looking con6denti
reasonably for improvement, bougb
, futures largely and put up thei
margins. Then the process c
gradual squeezing went on. Price
. were reduced and more margin
called for. This was repeated agai
I'd again. The weak buyers pl
up two or three margins, and were the
, foro ed toefse itup, but the stons
, er buyers held on, feeling assure
!, that the lower it now went the mo-
ce rtaint- there was big reactio
So they continued to put up margin
, some as many as five, SIX and eigh
e as the decline went Oh. Memph
3 alone, is estimated by parties well j,
| formed, has sent over 81 100000
= / New York this winter for margins Q
. cotton futures. The entire Soutl
; having the same faith in better price
has done the same thing, and at tn
time there are doubtless $4,000, ,O0
or more, held in New York as ma
f.a,ra loalc still nnofase