The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1906-02-10

1874 and 1845, when the price Of cot
ton dropped to five cents per pound
in New York, and cotton in the inte-
| riOr was almost unsaleable. Cotton
was not king in those days, as you had
to search for the mill to buy your
cotton.
Today every important commodity
is dealt in for future delivery, vouch-
safing a staple price. Cotton seed
oil. pig iron, sugar, indigo, pepper,
coffee and q%uinine all have their fu-
ture boards. No one thinks for a
moment that these are speculative
articles, simply because there is very
little gambling attached to them.
To make the matter clear, a mill
wishes to sell its output for six
months ahead. They wire the differ
ent cotton dealers to know at what
price they will sell strict middling
cotton for March, April, May, June
and July delivery. The buyer, look
ing at the future board, sees July
cotton quoted at twelve cents. Know
ing the character of cotton and freight
rate to said mill, he adds his profit
and quotes the mill the cotton at
twelve and one half cents, landed.
The mill, figuring on this basis, sells
it's goods, and the buyer purchases
the 1000 bales July in New York at
twelve cents, and as he buys the cot
ton from the farmer sells out said Ju-
ly in New York. This buying of fu-
lures raises the price, or il he wishes
to handle the transaction for twelve
months, he buys next December.
Now, without the aid OF the future
market, how could he intelligently
handle this transaction? How could
the mill have operated for the future
delivery Of goods? How could the
farmer sell his cotton for next sea-
sons delivery?
Now, to say that a great business,
carried on upon legitimate lines and
handled upon the exchanges of this
country, is altogether a gambling
transaction will not bear the light of
reason. Every man deprecateS the
speculation that is injected more es-
pecially into cotton, wheat and grain.
These are the speculative articles Of
the country. The little fellow, who
goes into a brokers' Office with 5000. 90
in his pocket to buy or sell 100 bales
Of cotton, is a gambler; no n denies
it, but why should the wheels of
progress be turned backward just to
stop this little fellow from %speculat-
ing.
1t is a great mistake to say that
future dealing, as conducted on the
regular exchanges Of the country, is
intended as q gambling transaction.
The Liverpool market is handled al
together on the basis of actual cotton,
as their quotations AID their bust
Liverpool. The SpinnerS don't buy
actual cotton but buy future contracts
in Liverpool, with SO much added or
SO much SubStracted for the different
grades OF cotton they purchase. 1t is
coming in this country very fast to
the same method, and to day a great
many Of the interior merchants know
exactly what they car pay for cotton
based npOn the future markets in
New York and New Orleans. The !
legitimate cotton buyer should han
die his business on just as a safe a
basis as the merchant who deals in
any other commodity.
Several Of our states have lately
passed laws prohibiting the handling
of futures except upon the legitimate
exchanges Of this country. If this is
done, eliminating the bucket shop
feature from future dealing, where
small amounts of twenty five and tif-
ty bales can be bought or sold and
small amounts of money can be wa
gered upon the rise and fall OF the
this can be eliminated,
and the business carried on it's legiti-
mate channel, there is no doubt that
it is a benefit to the whole country.
JAY ENNE.