St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1908-02-08
The Dealing i'm Futures.

wave class" in the State Of
Louisiana accomplished the
downfall of the Louisiana State
Lottery, and impressed upon the
mind the strength and power
of organized movements for the
suppression of anything sup
posed to be detrimental to public
morals or to a healthy state Of,
social existence.
From the corrupting infu-
ences Of the poker-room and the
race track to the gambling trans
actions of the bucket shop, the
debasing influences Of which are
easily traced, the mind readily
comprehends the mischief and
is converted without effort. Led
along these lines the dealing in
cotton futures has been classed
in the category of the bucket
shop, by the unthinking, to be
included in the reformatory
movement. We say by the I'M
thinking because mature thought
cannot but develop the error.
The fundamental principles I'M
DERIVING the conduct of business
in the Cotton Exchange enforce
the rule that there must be an
actual delivery Of all future cot
ton, of the price, quantity and
grade specified.
It is true, there is a system of
hedging that brings the total
transactions of the Exchange
above the actual amount of cot
ton raised, by cancelling con-
tracts, still it's effects are not in
any way, that we can see, inju-
rious to the interests of the cot
ton planter, but rather induces
an activity in the market that is
beneficial. insomuch as it permits
the laying in of a future supply
of cotton without the danger of
a rise in prices making competi-
ton in the manufactured fabric
impossible for future delivery of
goods, and it creates a uniform
ity Of price that would not other
wise exist.
This may be called speculation,
but not gambling. If it was
announced that the cotton crop
was a few million bales short,
nothing on earth could prevent
cotton from going up. The rules
of supply and demand govern
here as in all other products.
Is it not, then, apparent that
in eliminating the dealing in
cotton futures you are simply
taking out Of existence a part OF
the trade in cotton?
Small and large sums of money
are invested in all kinds of en-.
terprises and failures are FIRE.
quent. In legitimate trade PEG.
Iple become bankrupt, and the
tendency to speculate will exist
as long as there is a desire te
possess riches.
If the farmers were wealthy
enough that they could afford tt
hold their cotton indefinitely they
might be able to force prices
exorbitantly high, but the re.
suit Of this would ultimately
defeat the very object in view,
either by enticing overproduc'
ton and a consequent collapse,
or inducing other countries to &
final successful cultivation of the
plant, or perhaps the manufac.
ture of a substitute material
In the meantime, the people
would have to bear the burden
of cost-not the manufacturer.
| Our cotton exchange is com.
posed of intelligent men, repre-
ting the best and most progress.
sive citizenship of the state. Il
lis to their interest that the far.
mer shall be successful in his
farming operations for if there
were no cotton planter there
would be no Cotton Exchange
It is not possible with the space
we have to outline the commu
nifty Of interests Of the planter
and the Cotton Exchange, bu1
Iif it shall come to pass that tht
dealing in futures are prohibited
the planter will learn that one
Of his greatest assistants has
been destroyed; that instead O.
Having his cotton handled in hi
immediate vicinity he has shift