The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-06
DEALS IN COTTON FUTURES
LabOuiSSe Before the House AgriCuIt-
uTal Committee.

ne speaks IN Opposition to Hatch'@
Anti-option Bill - Statesmen Ao-
cused of Using Contradictory Argu-
ments to Explain Declines in the
Price of the staple-The Farmer Not
injured BY Contracts For Future
Delivery
Washington, March 81. w. Labouisse,
president of the New Orleans Cotton Ex-
change, appeared before the agricultural
committee of the House this morning in
opposition to the anti-opton bill, Mr.. La
bouisse read extracts from speeches made
In the House going to show that the fall
in the price of farm products was due to
future dealings, but that when the
same gentlemen were speaking on silver
they claimed that the fall in
the prices of agricultural products
was due to the practical decentralization
OF That metal. Mr., Labouissee contended
that selling cotton for future delivery
could not affect the price of the product.
Some times when the deliveries were
made the market was higher than the
contract price, and at other times lower.
The prices depended to some extent upon
the amount of the crop, and to other cir
cumstances that could not be foretold.
AN ILLUSTRATION.
He illustrated the uncertainty Of the
prices by reading extracts from letters
written TO him by leading cotton buyers
at Boston stating that eleven of the
great New England mills were now run
ming on half time and some would in a
few months shut DOWN Ialtogether, not so
much because Of the price of cotton as
because of the inability to sell the manu-
tactured product The writer's said that
nothing approaching this state Of
affairs had existed for twenty-five years:
yet, Notwithstanding this fact, the price
OF cotton is higher to-day than it was two
years ago. lie argued that the effect of
the bill would be to drive the small deal
ers out Of the market and give a monop-
oily OF the trade to few principal houses.
la the absence of competition, these latter
would fix their own terms Where the
exporters now make one-eighth Of q cent
q pound, they would make cent and 2
cents pound to compensate them for the
additional risk incurred, and this increase
in their profits would be taken from the
cotton grower.
IN KEEPING WITH OTHER DECLINES.
Mr. LAbOuisso contended that the fall
in the prices Of farm products was simply
In keeping with the fall in the prices of
more articles Of human industry during
the last decade, and that the question Of
future dealings had no connection with
this fall in any way. He went on to show
how that away back in lS45-47 the price
OF cotton was about 80 per pound when
the output was only about 1850 900 bales.
At the present tina the market is on a
crop of 100000 bales and on one
OF the years previous OF nearly that
amount, and yet the prices are higher
than they were in lS47 when there was no
suggestion of future" deliveries The
gnnq kar In fa fad n %
times by members Of the committee, who
piled him with questions relative TO the
operations Of the cotton exchanges of
New York and New Orleans, and the
effect Of future dealings on the price Of
cotton, to which he replied fully.
THE BROKER AND THE FARMER.
Mr.. Funston, Of Kansas, one of the
members of the committee, desired
to know if the brokers where
tSe farmer would come in who at
ontracted to deliver cotton in Novemb Der,
tempted to sell his cotton during that
month. Mr.. Labouisse replied that if he
were TO deliver the cotton In November
he would buy it from the farmer himself.
Mr.. Funston asked If the brokers could
not fix the price by destroying his only
competitor, namely, the farmer. He
made his position clear by explaining that
the broker contracts TO furnish the cot--
tOll, aliu WHtn Glb blIlt NDuit5 10 ubllNGE
1t there is nobody to purchase the cotton
from the farmer but the broker; conse-
quently the latter gets the product at his
own price
MIR. Labousse said that in his opinion
II made no difference who bought from
the farmer, whether himself or the mill
owner each intended to get it as cheap
as possible and that the farmer could
deal with the one quite as well as he
could with the other.
GOTHAMs COTTON BUSINESS.
]. O. Bloss, President of the New York
Cotton Exchange replying TO Mr. Hatch
said the average sales OF cotton in New
York was about 200, coo bales per day.
He was Of the opinion that speculation
had the effect of stimulating the price of
cotton On the highest markets the
greater business was done When the
market was low the trading was dull.
In reply to question by Mr.. Hatch,
he said that there was no agreement be-
tween the buyer and seller than an actual
delivery of the goods should not be made.
The committe adjourned until tomorrow,
when the hearing will be continued.
AN EXCHANGE TAKES ACTION.
ST. Louis, March 5.-At a meeting of
the board of directors of the Merchants
Exchange to-day the following resolu-
tiOn was adopted with reference to the
Hatch anti-option bill
The board Of directors Of the Merchants
Exchange Of st. Louis Joins with the repre-
sentatives Of other commercial bodies IN pro-
testing against the passaye Of the House btl
entitled. AN act regulating the sale OF GER
tain agricultural products defining options
and futures and imposing taxes thereon" or
any bill Of a similar nature, as unjust and
unwarranr and as being class legislation
tending 10 hamper or prohibit free trading
in the principal agricultural product, Of the
country TO the great detriment Of both pro-
ducers and consumers. The board therefore
respectfully urges upon the honorable sena-
tori and representatives. from Missouri 10
oppose in every way the enactment OF such
unwise and injurious legislation.