Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1908-03-06
AFTER COTTON GAMBLERS


came in for harsh criticism from Con-
gresham Sims, of Tennessee, speak
ing on the Burleson bill to prohibit
the use Of the mails, telephone or
telegraph in connection with trans
actions in cotton futures
In the course Of his remarks, Mr.
Sims pointed out that whereas the
largest crop ever grown was around
Is IL million bales, during the same
season the New York exchange sold
nearly one hundred million Thus
95 per cent Of the transactions in
cotton were purely speculative Very
low grade cotton being tenderable on
contracts. influences holders 10 be
willing TO accept cash settlements on
lower basis than if the cotton ten
dered were merchantabIe. All of
which hammers the market for the
real stuff, 10 the great deteriment of
the producer.
During the past two years the fight
on The New York Cotton Exchange
has been a determined one on the
part of the growers of cotton. The
Southern states generally have passed
laws against bucket shops" and deal
ing in cotton on margin. This put
a big stick in the wheel of the New
York exchange and incidentally saw
ed the people Of the South who had
been wont to play the game, millions
of dollars.
Then hostile legislation appeared in
the national congress. The depart
ment Of commerce and labor was in
structed TO investigate the workings
Of the New York Exchange, and as a
matter Of form, all exchanges, and
sent men over the South to gather
evidence as TO the New Orleans mar
ket, IS well as TO find out what eff
feet the New York market had on
the price OF cotton in the South. The
results of their Investigations have
not been yet published.
At various times, representatives of
the New York exchange have issued
high-sounding replies TO the char
ges OF gambling, but the coils have
been gradually drawing in until the
true character of the dealings Of
that institution is becoming an open
book
Representative Burleson's bill
strikes at the heart Of the matter, so
far as legislation can do so. The
influence of the New York gamblers
on the price of cotton would become
so small. under the restrictions prov
ided by this bill. that it would amount
TO little. Stripped Of the power to
beat down the price OF cotton, the in
stitution would probably cease to
be self-supporting and would perish
from dry rot.
But the farmers are learning how
to hold back cotton, instead of dump
ing it all into the market as soon as
ginned
At the best the chief good the
futures markets ever did the farm
ers was to aid in some measure in
distributing the needs for the crop,
regardless of how rapidly marketed,
| over a number Of months. For ex-
| pOrters it enables them to cover their
commitments TO the mills by being
able to find somebody who will bet
that cotton will be at certain price
during a given month. But spinners
could contract with the farmers them
selves for specified deliveries, and
thus cut out the middleman.
Feeding out the crop through the
twelve months would give stability
to values. a fair price could be ar
| rived AT by comparing the probable
size @ the crop with the probable
consumption. The principal thing the
spinners want is TO have a good idea
Of what their raw material VIII cost,
and this via enable thea to con-
tract for their finished product on a
safe basis.
The ideal condition for the cotton
grower is to eliminate the speeuls-
tor and be able to hold back the
crop from flooding the market in
the fall months. Such a condition is
| approaching. The abolition of purely
gambling transactions in the New
| York or New Orleans market would
be a great big step in that direction.