The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-02-18
KING COTTONS SUBJECTS
By FREDERIC ]. HASKIN.

We may shortly hear again a great
deal about gambling in futures. That
Is the subject OF paramount interest 10
the great producers organization. the
Cotton Growers Association. which is to
meet tomorrow al Dallas, Tex.
Naturally the cotton grower is most
concerned as TO the stability Of a profit
| yielding price He does not Ike luctua-
tons, because they FIJI him with regrets
when he has sold before a rise. or when
they fall he is prone 10 imagine there is
some chicanery somewhere which de-
| prives him and bis fellow-cotton growers
Of a fair remuneration FOR their products.
out OF this has grown. throughout the
great cotton belt OF the Southern States.
a big war against cotton gamblers, deal
ers in options-futures and bucket shops
This is a war that menaces cotton ex-
| changes that have been IN existence in
great centers Of commerce since the
dawn Of staples. and that reign as an
unequalec factor in maintaining for the
United States a balance OF trade with
other countries Of the world
The people OF the cotton exchanges are
fighting for existence fearful that the
temper OF the times. with its radical i'm
pulses, will take away from them what
they contend is not only a perfectly legi-
innate business Tor themselves but
means OF preservation Of credit and OF
resources for the planter. Pending in
Congress and in the legislatures Of those
cotton States which have not already
enacted laws covering the subject are
numerous bills looking 10 the suppress
sion and ultimate extinction Of dealing IN
cotton futures.
Ths discontinued cotton growers con
tend that exchanges cypress the cotton
grower and the country merchants. be
cause he organization enables the SDccu-
latOr u carry. say. 1000 bales OF future
cotton With the same amount Of money
he would have 10 expend for actual or
spot cotton. and the effect Of this IS
held 20 make the staple itself drug on
the market. subject 20 the caprices Of the
gamblers. II is urged by the grower that
IL is plain 10 any thinking man that the
large spectators can form themselves
into a pool and concentrate l00.000 bales
Of inferior cotton in one place. and by
delivering the low grade stun or future
contracts. be able 10 depreSs the price
good cotton. II is commonly charged
against the cotton exchanges that their
future dealings have forced growers To
sell crop after crop al less than the cost
Of production. The cotton growers point
70 the spot cotton exchange OF Bremen.
Germany. where no dealing i'm futures is
permitted. There cotton s arbitrarily
classed. anG the classers do not know the
owner OF me cotton until they have grad
ed il.
Speaking in their own defense. the cot
ton eXchanges-notsbly that OF New Or
leans-declare that they were induced 20
establish themselves against the danger
OF foreign domination: that they have
preceptibly regulated and steadied spec
ulatiOn in the great staple along the lines
Of legitimate dealing; that every transac-
ton means cotton sold and 70 be deIiv-
cred, all exchanging hands in the course
Of supply and demand: that the original
seller OF contract 20 deliver may. be-
fore delivery time. buy a like contract
from another. or the original purchaser
sell 70 another a like contract 10 receive.
the result I'm the end being the same-the
carrying out TO the letter OF all contract
stipulatiOns. The cotton exchanges COM
plain that in the righteous war upon the
bucket-shOp evil the cotton growers 90
not discriminate wisely as TO legitimate
dealing which is carried on in the ex-
changes whose rules are strictly framed
and enforced 10 prevent any improper
conduct Of business.
All IN all. there appears TO be a wide
divergence Of views between the cot
ton growers as a class and the cotton
merchants who make and compose the
cotton exchanges. President Roosevelt.
usually inclined &c positive views on all
subjects concerning the general welfare.
approached this particular subject with
exceptional caution in his last annual
message. After saying that there was
no moral difference between gambling
at cards, or in lotteries. or on the race
track, and gambling in the stock market
he admitted that il was "a far more diff
heult subject with which to deal" He
added The great bulk OF the business
transacted on the exchanges is not only
legitimate. but is necessary 10 the work
ing OF our modern industrial system.
and extreme care should be taken not TO
interfere with this business in doing away
with the bucket shop type Of operation.
Whatever the result of the agitation
as to futures, it is certain that the cot
ton-groWing industry was never more IN
Po1N dlil iiOA the Sldple IN 50 secure
place as now The best informed authori-
ties can see no likelihood that the sup
ply viii overtake the demand for very
many years 10 come For a long time
European countries have striven TO intro
duce the cotton growing industry into
their colonial possessions. where the eli
mate and soil appeared propitious, but
little ever came of these efforts Five
years ago the European cotton mill men
united and persuaded their countries 10
begin anew increasing cotton production
in the colonies, driven by the fear that
the American staple might not be pro-
duced in quantity sufficient to answer the
increasing demand for their manufac-
tured products The countries which lent
themselves 20 this movement were Bel
GUM, Great Britain. the Netherlands.
France, Germany, Spain, and Portugal.
all making a grand effort in vast areas
OF Africa. Asia. and island possessions. /
The result has been hardly perceptbIe
increase in production.
The total worlds cotton production.