The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-13

A Chicago special received by James A.
Pollock Co. over their private wire
says:
"A boomerang TO southern states on ac-
count of laws passed by state legislatures
prohibiting speculative trading in futures
Will cost southern planters SlOO,O01OCO per
year, and with bumper crop much more.
James A. Taylor, president of the Ma
uOnal Cotton Ginners & Planters assO-
citation, in his address to southern states
a few days ago, said, in referring to the
pending legislation now going on at Wash
ington:
There are several bills introduced in
both houses Of congress. any one of which
would do away with the New York and
New Orleans exchanges. This would mean
to do away entirely with present systems
of marketing our great staple crop, that
is the life-bloOd of the south. 1t has TAX
EN- years to perfect this system, under
which the south is in the most prosper
Gus condition in its history; therefore, 1
think. We should proceed with great eau
ton before wiping out this system, that
many people who have given this matter
thorough consideration believe will cost
the south loss of slO0,0O0,000 each year,
and with bumper crop very much more.
Believing that speculation on eX-
changes was to blame for lower prices in
cotton and that said speculative trading
on exchanges was detrimental to their In
terests, great numbers of the southern
people demanded that the different south
ern states legislatures pass laws prohib
iting future trading, but while this has
been done in our leading states it does
not seem to bring the relief they antici-
pated, but seems rather to act as a boom
erang, as the planters are not able to
keep so well posted on the market as be-
fore, and cannot make good sales of their
cotton, and the worst part seems to be
that fl has cut off the army of specu-
latOTs in those states who are the main
support of the market in all efforts to
get higher prices. This has lessened the
support from the other states where they
have no such laws as they realize that
they were fighting for higher prices at
a great disadvantage. Legislation has re-
duced their number without materially
reducing the short sellers. who are large
~ in the north and east as well as in
Europe.
we have too much at stake to decide
this question without first carefully con-
sidering the possible effects. In view OF
the great magnitude of this proposition.
! would suggest that a convention be
called to meet early in March, at some
convenient southern city, to be com
posed of delegates of the different farm
ers organizations, the spinners and man
ufacturers' associations. the different
bankers 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-
glIstae Charleston, Norfolk. and any 9th
ers Vat might care to send delegates.
think each city of 10000 population should
send one of its leading business men as
a delegate. to be appointed by the mayor.
The object of the convention would
be to study carefully the methods of
handling the cotton crop in the south.
+" 'Second-To study the effects future
contracts have on the price of spots I'M
der the present system. and the effects
il would have on handling the crop il the
New York and New Orleans exchanges
were closed.
.Third-A committee should be ap-
pointed to be composed of the different
interests represented. This committee,
after giving a careful hearing TO all par
ties at interest should report form of
contract fair and equitable to all. If the
report of the committee is adopted | feel
very certain the cotton exchanges Will
make the required change of reasonable.
While the southern planters have
been lamenting because they had to sell
very short crop at prices at least $40
per bale too low. the grain farmers OF
the north and west have been marketing
a moderately short crop of wheat at about
30 cents per bushel higher than usual.
Cotton is as cheap at 10 cents per pound
as wheat is at 81 per bushel.
" I account for this as follows: AS soon
as the green bugs began to work on the
wheat fields of the southwest last spring.
spectators and the investment public
saw that the CROP would be short and
they went into the market and bought
the mills and grain merchants, even be-
fore the farmers sold a bushel of wheat
and the price has been we'll maintained
ever since. Had the northern states
adopted such unfortunate laws as the
southern states did TO suppress future
received from 20 TO 50 cents per bushel