Evening star., 1894-03-05
DEALING IN F UT U RE S
Mr.. Hatch and Cotton Exchange Officials
Talk Briskly.
Cotton n COmmOdity-Very Seldom
Actually Delivered, but officials
Say 1t is All Right.

The leading authorities the cotton
trade were before the House committee on
agriculture TODAY for the first of series of
hearings on the Hatch anti-option bill. 1t
brought out some sharp controversy at
times, during which Representative Hatch.
the author Of the bill, joined issue with
President j. o. Bloss of the New York cot
ton exchange ani President j. W. La
bouisse of the New Orleans cotton exchange
as to the general practice of selling cotton,
with the distinct understanding that it was
to be a speculation with no actual delivery
Mr.. Hatch said tnat this practice was car
riCd on constantly in Chicago, and he had
evidence of unquestionable character as to
the fact. Both of the heads of the cotton
exchanges cCntroverted the fact In the
course of the discussion with Mr.. Bloss,
Mr.. Hatch asked how many bales Of cotton
the New York exchange had on hand from
day to day?
about 2I5.OOJ bales" said Mr.. Bloss.
what are your average daily transac-
tions?"
About 2OO.O bales and sometimes much
less"
Then" said Mr.. Hatch. your daily
transactions are more than all the cotton
you have on hand?"
Mr. Bloss asSented and then proceeded to
show that speculative markets had a ten
dency to help prices.
The higher the market the larger the busi-
ness. Low prices meant an era of inactiyl-
ty and inaction. Mr.. Bloss added that Mr.
Hatch had been misin formed or mislead as
to the alleged practice of making future
contracts not to deliver.
MIR. Hatch.-Do | understand Won IN cay
that all the trades made on the board of
trade OF chicago for any of the commodities
named In the bill are always terminated by
an actual delivery of the property?
Mr. Bloss.-I say the contract calls for il
dnrS
ment That is exactly what I saw But
tEere is not one out of a thousand ever
terminated in actual delivery and the gem
eral understanding is that they will he
settled without that. IT, according TO vonr
statement, the rules of the board of trade
require actual delivery on every contract
OF that kind which is made why is it not
enforced?
Mr.. Bloss-Because it suits both parties
TO the transaction, either directly or in
directly. to make other disposition of it,
Mr.. Hatch, to the stenographer-'Take
that down. 1t suits them to evade il be-
fore 1t Is terminated"
MIR. Bloss-There is no evasion If
sell you 10000 bales of cotton for future
delivery, next April. and for any reason
whether an advance of price or inability To
secure it for the purpose of delivery to
you. can get another gentleman to stand
in my shoes and make you a delivery who
perchance Is hunting around to get some
one to take th9 obligation off his hands
there is no evasion of the contract at all.
The contemplation at the time of entering
into the contract was that 1 should de-
liver. There is no contract between you
and 1 that L shall not deliver.
Mr.. Hatch-Except the custom.
Mr.. Bloss-An agreement is an agree
ment. If / find a way of fulfilling the
contract and others possessing the thing
have sold IL for me that does not in any
way, shape or form affect that fact /
have made the obligation and 1 am obliged
to find somebody to fulfill ii.
President Labouisse of the New Orleans
Cotton Exchange submitted a statement
and many tables bearing on the cotton
trade He gave II his opinion that the
fall in the price of commodities. including
cotton, was not due to legitimate specula-
ton, but was the result of fall in silver.
which had been going on for many years.
He denied, however. that there was any
undue falling off in growth of cotton.
Its periods of high price had been due to
special causes and it had been affected
by the general shrinkage Of the last twenty
years in all branches of human industry.
Mr.. Labouisse said he had never known
of refusal to deliver cotton If the trader
asked for 1t. In answer to a question from
Representative Simpson Mr. Labouisse said
the Hatch bill, If enacted into law. would
have the effect of driving out the small
dealers and concentrating the cotton
trading in the hands of few large deal
erS.