The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-03-12

Men Appear Before Congress
siOnal COmmittee-Investig
Anti Future Trading Bill

Exchange, and Atwood Violette, and
a committee representing the "insur-
gent element Of the New York Cot
ton Exchange. this week appeared be-
fore the agricultural committee of the
House in opposition to the Scott anti
future trading bill and in behalf Of
such remedial measures as are neces-
sary to remove from the New York
future contract the evils charged
against 1t. Until their appearance
many inside facts, essential to a clear
understanding Of the question, had not
sons committee and Mr.. violette's
committee approved u. S. Commits
sioner Herbert Knox Smiths report of
the governments investigation of cot
ton exchanges and Of the conclusions
| reached by Mr.. Smith, and both point
ed out that future trading carried on
under the conditions named by Mr.
Smith is beneficial to farmer, mer-
chant and spinner alike.
In the course of Mr.. Thompson's re-
marks he said:
"The evils that have become asso-
ciated with future trading are three In
number. the bucket shop, excessive
speculation and the uncommercial
contract. These three abuses have
brought the system into disrepute and
have provoked the attack which Is
threatening the life of the system 1t.
self. The system Is attacked not be-
cause the evils are inherent, not be-
cause the evils cannot be eliminated
without destroying the system. but be-
cause the aggravating character of the
abused has aroused a feeling Of re-
sentiment so furious that for the TINA
being discriminating justice has been
blinded and silenced.
"a bucket shop is a place where
wagers, not contracts, are made
Nothing Is ever bought or sold in
bucket shop and no legal or enforce
able trades are made there. It Is a
gambling proposition simple and with
out qualification. The keeper deals
game against his victims and what
they lose he wins.
Excessive speculation In cotton is
the second evil attributed to future
trading. Before We condemn specula-
tion in entirety it would be we'll for
us to consider the question as to
whether or not there is a distinction
between the kinds Of speculation, be-
tween illegitimate and legitimate spec
ulation, between speculation that Is
wholly bad and speculation that may
be and is beneficial. We believe that
there Is such a distinction and our
conclusion Is this: When a man in
no wise incapacitated by reason Of
ignorance, weakness or lack Of means,
or disqualified by reason of a position
or relation of trust, buys or sells a
| commodity or thing or it's representa-
tive which Is an enforceable contract
therefore because he thinks it is
cheaper, and because he thinks that
he can subsequently dispose Of his
holding at a profit the speculation is
legitimate, not necessarily harmful to
the individual and almost necessarily
beneficial to the market for the COM
modify in which he trades. But when
man not so qualified and capacitated
as specified. undertakes to speculate
or when any man merly wagers that
a certain event or tendency may OF
may not occur, or If having bought
and sold a commodity or thing or
contract therefor, he enters into
conspiracy with others, or uses some
accidental power Of his own. to de-
press or advance the price of the COM
modify or thing beyond its legitimate
value, to the hurt of the bona fide
holders of or traders in such commo-
dity the speculation is illegtimate,
hurtful to the individual and to the
market in which he trades Legitimate
speculation as here defined is a benefit
to the cotton market.
Tile third evil to be considered is
found in the terms Of the future con-
tract itself and in the rub Of delivery
and settlement hereunder resulting
In an injurious effect upon the market
and upon the price of cotton, by the
delivery Of cotton or tender of deliv-
cry on such contract and under such
rules.
''The New Orleans Cotton Exchange
defends no evil. Our laws and rules
i'm force at this time represent the best
thought of our members, aided by the