The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-02-14
Cotton Futures.

To the Editor OF The Post.
Hillsboro, Texas, February 11.-At the
last monthly meeting of the Cotton Grow
ers Union. Hon. John d. Pitts complied
| with an invitation to address them on
gambling in futures and it's effect upon the
| price of cotton.
His address produced n profound i'm
preston, and he was frequently inter
| rupted by applause. The overproduction
argument of the exchange and cotton firms
was thoroughly refuted by showing
of the amounts in the hands of the mill
men aud cotton "in sight at the end OF
each cotton season, which amounts were
so plainly Insignificant that argument was
unnecessary. He quoted recent state
nlent of Mr.. Roddy, a member of the New
York cotton exchange. that there has
never been an overproducton. because
overproduction means accumulation"
That lover % per cent of the cotton
goods trade of the world is in the hands
of Great Britain, Germany and France;
they control the price Of your labor they
would be fools II they had perfected n sys-
tenn to hold you down II they did not
do so.
For the last several years there has
been a great cry of overproduction and
lengthy speeches about diversihcation of
crops still statistics prove that this has
not been tho reason for depression in prices
but tho visible supply is now less than
any other year at the same time Since
1880, and though the European stocks are
from 100 000 to 100000 bales less than AT
the same time for seven years, look at the
krice, BY holding off aud keeping the
contract market depressed they know that
on account Of your poverty they can get
your property at the price they care To
fix"
These statements of Mr.. Roddy are true
and most important. for he is member OF
tho New York cotton exchange and knows
whereof he speaks, He'is II native OF South
Carolila and contradicts the trashy state
ments of people who wish to draw the
attention of farmers away from the 'fu-
lures" or depression, contract system on
market gambling
The speaker explained that the New
York and Liverpool exchanges were twirs
and all other exchanges and bucket shops
We're branches working under these twoi
He then explained the depressed contracr
system, showing that II was contracts to
sell futures AT lower price than spot
tations from the New York exchange SOW
ing the daily spot cotton market and tn
daily offer of the exchange to sell ''fu-
lures Mt lower price than spot cotton.
The effect OF this. he said, was to rob the
spot cotton market OF Its purchasers. in
Guiding treasurcrs OF the cotton mills.
who bought futures and left thu srot cot
ton 10 fall 10 lower prices. BY offerinp
these daily futures ut from ona-fourth to
ono-half and sometimes cent lower, than
spot cotton. il forced spot cotton to fail
day after day to compete with these de-
Pressed future prices. As soon as the
spot cotton market dropped the New York;
exchange lowered its offers OF futures.
keeping them always below the value O.
real cotton until II was AS low as they
dared 10 force il and until the discouraged
producer was compelled TO sell at less
than the cost of production
Me, Pitts then read tho market reports
Of the New orleans cotton exchange for
November, 1897. showing that this system
OF undsrhDStlfg had Ia those two months
reduced the price Of cotton nearly cents
a pound. or $40 per bale. The folIowire
extract from The table OF quotations shows
the result ~ dep9cssed futures:
Comparative table Of spot COTTON prices
and futures IN New Orleans for Sep |
tembsr and ootcbcr. 1897 Ill
Price Per Pound
Spot Cotton Futures.
september S,...,...,.... T3-S e67-To /
eeptsmber II .-,.....,.,, s-i6 ss5-e7 /
september IA ..ss.,.,..,.,f Ia 6fnfi