The Birmingham age-herald., 1908-02-10
PRESIDENT TAYLOR
 ISSUES STATEMENT investigates Methods of New York Cotton Exchange SUGGESTS IMPROVEMENTS President of National Ginners' Associa- ton Points Out Value of specu-
 lation To the Wheat Grower
 in the West.
SUGGESTS IMPROVEMENTS

T returned on the Sd instant from a two weeks trip to New York and Wash | ington. While in New York 1 made a special effort to investigate the methods of the New York Cotton Exchange. l think a part zof their system very good
 There are many features that can and ought to be improved on.
 Owing to the abnormally large amount of low grade cotton in the crop of 19O6-O7 there was more than the usual amount of low grade cotton delivered on contract there. While this cotton is not dogrtail, as some people think, it is very unde- sirable from a spinner's standpoint as most of 1t is poor staple and has no body.
 Tt has become a custom among the larger spot merchants to cull out the undesirable part of their low grade cot tons and send them to New York to de- liver on contract, as they could get more that way than the spinners would pay. While this has helped the planters on a very small per cent of the crop, they have lost on the balance many times as much as the gain. The south does not want an artificial value on small part of their crop at the expense of the bal ance
 Tn the course of time those low grades will be worked off, but the longer they stay the more we lose. l talked with most of the leading members while there and they seemed willing to give us better contract. Over year ago ef- forts were made by many members to bring about change, but owing to rule they have, requiring a two-thirds majority before they can make any changes, it has been an uphill fight for them. The sentiment in favor of change has been increasing right along, and they have had two revisons since September l. and have another one up for consideration, and I feel certain 1t will be made
 "There are several bills introduced in both houses of Congress, any one of which does away with the New York and New Orleans exchanges. This would mean to do away entirely with the pres ent system of marketing our great staple crop that is the life blood of the south. It has taken years to perfect this sys- tenn, and under which the south Is in the most prosperous condition in it's history; therefore. I think we should proceed with great caution before wiplng out this sys- tenn that many people who have given the matter thorough consideration believe will cause the south a loss of s100,00O,O0O each year and with a bumper crop very much more. Why have these bills been introduced?- I think for several reasons. chief of which is the fact that the south has been asking for a better contract from the New York exchanges for the. past two years with very little success. They have felt for some time that the New York contract was costing them many millions of dollars each year, as 1t enabled shrewd speculators to take ad- vantage of 1t and depress the market for their personal benefit Not knowing what else to do, the people demanded that the different state legislators pass laws pro- hibiting future trading, but while this has been done in our leading states, 1t doesn't seem to bring the relief they an ticipated, but seems rather to act as a boomerang, as the planters are not able to keep so well posted on the market as before and can't make good sales of their cotton, and the worst part seems to be that it has cut off the army of specula-. tors in these states who are the main support of the market in all efforts to get higher prices. This has lessened tho support from the other states, where they have no such laws as they realized that they were fighting for higher prices at a great disadvantage. as legislation has reduced their numbers without materially reducing the bears. who are largely in the north and east, as well as in Europe.
 We have too much at stake to decide this question without first carefully con siderinp tha poSSible effects have talked to a great many people who favor these bills, especially members of Con- gress, while I was in Washington, and most of them say that if the exchanges dealing in futures had the right kind of contract, one that would be fair to all and stop the manipulators from working both sides of the market, as they are do- ing now, there would be very little ob- jection to legitimate exchanges.
 ''In view of the great magnitude of this proposition I suggest that a convention be called, to meet early in March at some convenient city. to be composed of delegates of the different farmers or ganizations, the spinners and manufac- turers associations. The different bank CTS associations, the New York and New Orleans cotton exchanges. together with all the larger spot exchanges, such as Galveston. Houston, Shreveport, Little Rock Memphis, Mobile. Savannah, Au-
 
 others tbat might care to send delegates I think each city of 10000 population should send one of it's leading business men as delegates. to be appointed by the mayor The objects of the convention would be to carefully stud, the methods of handling the cotton crop in the south.
 ''Second-To study the effects future contracts have on the price of spots under the present system. and the effects it would have on handling the crop If the New York and New Orleans ex- changes were closed
 "Third-A committee should be appoint l ed to be composed of the different inter- 1 ests represented. This committee, after giving a careful hearing to all parties at interest should report a form of contract fair and equitable to all If the report | of the committee is adopted, I feel very quired change if reasonable.
 'The -spinners say the present contract | is not a good one. The planters and most | of the cotton merchants agree with them, | and as the commission merchants in the | exchange is supposed to represent those | various interests it should be his policy | to please them.
 While the southern planters have been l lamenting because they had to sell a very | short crop at prices at least Sl0 per bale ! too low, the grain farmers of the north | and. west have been marketing a moder- | ately short crop of wheat at about 90 l, cents per bushel higher than usual Cot 1 ton Is as cheap at 15 cents per pound as | wheat is at s1 per bushel I account, for | this as follows: As soon as the green spring, spectators and the investment | Duhlic saw that fha crop would ho ahort