The semi-weekly messenger., 1908-03-06
SHOULD Be ABOLISHED
Are Of No Benefit to Cotton 10
dHstT of lhs Country
Dealing in Futures Denounced as an
''Unmitigated Evl"-Currcncy Leg
islation subject of Consideration
in the Senate-kotc ga Aldrich
Currency Viii Probably b. Taken
Next " cdncsday.

Washington. March i.-GurrencS
| legislation was the subject - coA-
| siGeration in the senate TO-DAY Sena-
tor Hepburn opposed the pending bin
/ and declared tnat Il was useless and
he would not vote for IL. Senator Hop
| kins spoke at length In support OF tbs
bill
Senator Bailey stated that he would
speak on the currency bill Monday
and Senator Depew will speak On
! Friday.
Senator Aldrich announced that he
| hoped TO have vote on the meAsurs
next Wednesday. After addresses had
| been made on the bill TO increase
ne pay of the army. the senate ad-
journed at p. m.
| HOUSE.
The postoff1ce appropriation bin
| technically was under consideration In
! the house today but the discussion un-
| der license OF general debate took n
| wide range. Speculation In cotton.
! finance the tariff and a number ot
miscellaneous matters in turn occu-
| pied the whole time OF the session. Mr
Sims, OF Tennessee, spoke In favor
/ OF the Burleson bill to abolish deal
| ings in cotton futures Messrs. Cha
ney, of Indiana, and Lindberg. Mime
sofa. talked on the financial question.
Mr.. Hitchcock pleaded for placing
on the free list Of wood pulp and print
paper, and several others secured the
| floor for brief perioda General de-
| bate on the postofice appropriation
bill will conclude tomorrow at o'clock
! when 1t will be read for amendment
At 5:52 p IN. the house adjourned.
| Declaring that the practices Of TIM
New York cotton exchange was intol-
cradle and that the cotton growers
OF the south had determined 20 use
| all lawful means TO end them, Mr
| Sims, of Tennessee advocated the
passage OF Burieson bill prohibiting
the use OF the mails, telegraph and tel
ephone service in dealing In cotton
| futures" where the delivery and ac-
ceptance OF actual cotton In not in
] tended. He said that II there was any
good left in the New York cotton ex-
| change "it was so over-shadowed by
| the bad as TO make IL desirable to
wipe out the good rather than 10 long
er tolerate the bad effects Of It's re-
prehensible practices"
Mr.. Sims asserted that there was
! no legitimate benefit TO the cotton in
dustry Of the United States I'm any form
growing out OF transactions on the cot
ton exchanges of this country as now
conducted. Dealing in cotton futures
was denounced as "an unmItigated
evil' with no compensating advant-
ages. He said the largest crop OF cot
| ton ever grown in the United States
was In round numbers thirteen and
one-half million OF bales and yet in
the year this crop was grown the sales
for future delivery OF cotton on the
| New York exchange was between nine
ty and one hundred million bales: that
not exceeding five per cent OF these
were in any way connected with ac-
tual cotton transactions-that fully ss
| per cent OF all the sales OF futures on
the cotton exchange in New York were
purely speculative and would fall un-
! der ban OF the law II the Burieson
| bill was passed
He said the grades OF cotton that
were delivered on contracts in the cot
ton exchange I'm New York were such
as 10 offer a premium on law grade
undesirable cotton. The result was
! that a large amount OF this class OF
lunmerchantable cotton accumulated in
the warehouses In New York instead Of
going into consumption and was de-
| livered and re-delivered on contracts.
The effect Of this practice. he said. was
TO cause holders OF contracts OF any
particular month 10 sell at any price
before the month OF delivery arrived.
rather than take this low grade un-
desirable cotton that could be used I'm
no other way that redelivery on some
other future cotton contract Tho
logical and practical effect" he de-
clared lis 10 depress the price OF fu-
lures for the nearest month. which
in turn depresses the price OF actual