The Birmingham age-herald., 1908-02-20

modity beyond it's legitimate value to the hurt of the bona fide owners of or trades in such commodity. This is illegitimate speculation.
 Speculation Beenficial.
 Legitimate speculation is beneficial to the market, and when practiced by those who can afford to do so, it is not neces- sarily hurtful to the individual. It often supplies a demand for a commodity or for It's representative, which is the en- foreeable contract for the commodity, when the demand for the commodity IS absent or in abeyance. It often happens that by reason of sudden excess of sup ply owed demand, or because of some ac- cidental happening that disturbs business and engenders a pessimistc feeling, that demand is withdrawn and prices decline in consequence. A decline thus started will continue until arrested by some buy ing power. It often happens that this buying power is supplied by the specu- lator. He thinks that the price is low and he buys because he thinks he can make money by holding and selling later. It often occurs that by reason of crop injury or some other happening that makes the speculator believe that the price, although comparatively high, IS yet too low In this case he also buys with the expectation of holding and sell II he eventually takes the cotton or sells out his contract to some one else who will take the cotton. The good effect Is accomplished. The contract that was sold to him, no matter how many hands 1t may pass, must eventually be liquidated by some holder thereof having to buy from some spot holder the actual cot ton for which the contract calls.
 '.Therefore, speculation in itself IS not -ttx 1,o6 bp ma be of great benefit But even admitting this distinction in speculation, 1t cannot be denied that there still remains great deal of speculation in cotton that IS Dad for the market land for the individual. Such speculation can, and should be eliminated.
 A Friend.
 "The New Orleans Cotton Exchange is the only friend the producer has among all the great exchanges of the world. It's membership is made up largely of men horn in the south, and men who are in sympathy with the producer, and whose interests are directly or indirectly inter woven with the producers interest IT proof is needed of this assertion, 1t is to be found In the fact that the New Orleans Exchange has always led in all the great upward movements of cotton. Even now, when it's business is crippled, and its
 
 acts of those who should be it's friends, 1t still shows it's loyalty and character by maintaining both it's spot and contract markets actually higher than any market in this country and relatively higher than any market in the world. You may ask me why our contracts are quoted below spots. I will tell you that contracts for the current months have been going out on an equality with spots, which proves the honesty and value of the contract. Contracts for the later months are lower than spots because there Is little demand for them Why is the demand so small 7 Because the greater part of the south and practically all the friends of cotton are prohibited by law from buying cheap contracts and doing the very thing that would help the producer in his fight believe, and my. belief is founded not only upon the logic of reasoning, but upon deductions from existing facts, that if the several states had passed anti-bucket shop laws, and laws prohibiting the evi-s of gambling only, and had refrained from outIawing the legitimate future contract, none of you would be now holding youc cotton for 15 cents, because you would have gotten 15 cents for it long ago.