Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1910-12-16
CLEAR STATEMENT OF EVILS OF
GAMBLING IN COTTON
FUTURES


1 FUTURES
At the last session OF Congress
there passed the House OF Represen
tatives a bill prohibiting. under Ger
tain conditions, gambling in cotton
futures. This measure, In all proba
bility, win come up for action by tn,
Senate at the next session.
During the years gone by. man,
Of you often felt that small cotton
crop had been sold at an unfairly
low price, owing to the manipulation
in the cotton exchanges of the coun.
try. Whether you are directly inter
ested In the raising OF cotton or not
[every one in Mississippi is concerned
in. the handling OF this great crop,
and will explain to you how in the
pas he price of cotton has frequent
ly been depressed bymanipulation, and
how It was attempted to depress It
through manipulation this year.
| In the fall or early winter, when
the spinners of the East are begin
ming to buy cotton to supply their
needs, when they think the opportuni-
~ favorable and the price of cotton
high, and they have always eonsid-
cred It high when we thought 1t was
fair. they would go into the market
and throw on to 1t thousands and
hundreds OF thousands OF bales of
future cotton, cotton which they did
not own. phantom cotton which they
had contracted to deliver IN the sum-
mer months following. The effect of
this would frequently be to depress
the future market and carry with it
the price OF the spot commodity.
This cotton was usually bought by
the disorganized Southern public.
Sucker gamblers" seeking easy
money at another mans game. men
who did not expect to accept the
cotton which they had contracted for.
As the time FOR delivery would APP
proach. these men would endeavor
to get out of their contracts, depress-
ing the market in 80 doing. and those
who bought in good faith and were
willing to accept the cotton bought
would be rendered unspinable cot
ton, dog tail" cotton. two or three
hundred thousand bales OF which
were usually kept In New York for
this purpose. cotton which they could
not use. and which would be rendered
at an unfairly high price,. For when
you go into the cotton market to buy
cotton. you don't buy middiing cotton
or ordinary cotton. but simply cotton,
and the basis OF difference Is fixed
by the rules OF the exchange. The
New, York Exchange usually fixes an
unfair basis OF difference. II mid
ding cotton, for illustration. was
worth ten cents, this unspinnable cot
ton should be worth about Ave cents
L would be valued at eight and half
cents. and the purchaser would find
himself rendered cotton, which he
could not use, at an unfairly high |
price. He. would get out OF his con-
,raet, on the best terms possible. de-
pressing the market in SO doing. aud
he bear combine. closing out their
rades at a profit would come South |
md buy our cotton at,the lower price /
Jrought about through their own
OF the market.
This year the same play was at
.empted. You will remember in
January, when cotton nearly reached
ixteen cents, the market broke from
we've and half to fifteen dollars o
,ale. This was caused by hundreds
Il thousands of bales OF future cot
on being thrown on the market BY
he bear combine. But this cotton
instead Of being bought by the dis
Southern public. was
ought up BY bull clique, consist
ng Of men who believed that, con-
idering the size OF the crop and the
prosperity OF the country, cotton was
,efng sold for less than its value.
n April, when the time for delivery
vas approaching. the bears realized
hat these men would demand the
OF the cotton which they had
fought, and that they had been
aught In their own trap, and would
ave to go South and buy cotton It
fair price in order to all their con-
racts.
In this dilemma they went to the
United States Government. and said ,
d substance, to the Government.
We have for years been accustomed ,
o despoil the cotton producers Of
he South" I'm the way which
lave described; that during all
be weary years when we were CIV !
ng them poverty instead OF plenty. !
he strong arm OF the Government ,
,as never stretched out to help the |
otton producer, but now we have !
cen caught-in our own trap, and will 4
ave to go to the producer and buy !
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