Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-27
CHECK ON TRADERS
Cotton Exchange President
Wants Federal Supervision.
FUTURE BUYING is NEEDED
Fault Declared to Lie in Method and
Not in Fact of Specula-
ton. -

NEW YORK, March 26.-Federal super
vision Of speculative exchanges was rec
commended tonight by w. ]. Thompson,
president of the New Orleans Cotton Elk
change. in an address before the repub-
lican club of the city of New York.
Mr.. Thompsons subject was How Can
the Economic Features Of the Speculative
Exchanges be Preserved and the Ethical
Evils Eliminated" In suggesting his
remedies he said:
There is no wrong in future trading
per Sc, nor is there any evil ia a fairly
and equitably administered system of fu-
ture trading wherein the speculative feat
ure is adjunctive to the trading in the
actual commodity, and wherein the value
OF the speculative medium is regulated
by the value of the actual commodity for
which such medium stands.
Future Trading Necessary.
ION the contrary, future trading is as
ethical as present trading. and properly
regulated system of forward commitments
is an indispensable factor in modern
trade. Remedial efforts. therefore. should
not have for their object the abolition of
the future trading system, but should be
directed toward the codes and rules of
the exchanges wherein the system is
operated.
THE first step in the remedial endeavor
is to bring the exchanges to just ap-
probation of their responsibility and OBJ
legation to the public, and the second step
is TO COMPEL a fair response to this re-
sponsibiity and this obligation L know
of no effectual method by which these
results may be accomplished except by
Al ,n nP "a fhpmSQtvaS n
forced through their strong governmental
arms.
For Wise Supervision.
TT is not feasible or wise for Congress
to undertake to make a book of rules
for the government of the exchanges. but
it is feasible and it is wise and necessary
that the observance of a few plain prin-
ciples OF right and wrong shall be COM
manded by national legislation, and that
special executive agency snail De
charged with the duty of seeing that
these mandates are obeyed.
II take this stand with some trepida-
lion. but with no misgivings. The active
interference by the government with the
operations of powerful organized interests
which have hitherto enjoyed immunity
from compuisiOn involves consequences
worth serious consideration: but the far-
increasing discomfort and restlyeness OF
the millions who are touched thereby
make wise remedial action imperative.
Gambling Evils Must Go.
The ethical evils of the speculative ex-
change will be eliminated, or the specu-
Iative exchange will CO." said Represent
alive Charles F. Scott Of Kansas, chair
man of the House committee on agricul-
ture.
why shouldn't the buyer of securities
be as well protected as the buyer OF
groceries?" he continued. Il do not know
why it should be praiseworthy enterprise
for r dealer in railroad stocks to de-
ceive< his customers and a felony for
a dealer in butter to deceive his. Rail-
road securities should be the most popu-
lar investment In the United States. but
there are millions Of our people with
money who nee from them as from pestt-
lence The Rock Island upheaval may
have had something to do with this at
titude."
]. G. F. Merrill. vice president Of the
Chicago Board OF Trade: A. r. Marsh.
vice president OF the New York Cotton
Exchange; Welding Ring, president Of
the New York Produce Exchange. and
Prof. John b. Clark Of Columbia Uni
yers1ty also discussed the subject of re-
form in the speculative exchanges.