The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-27

New York March 96.-Representative
Charles F. Scott. chairman of the Com
mittee on Agriculture, which has been
investigating exchanges all over the coun-
try. said to-day at the Republican Club
luncheon that it was up TO the members
of the various exchanges against which
accusations were being brought TO set
their houses in order The subject under
discussion was How can the economic
features Of the speculative exchanges be
preserved and the ethical evils elimi-
nated?"
The New Orleans Cotton Exchangc the
Chicago Board Of Trade the New York
Cotton and Produce Exchanges We're rep
resented among the spectators.
AIR Scott produced figures TO show the
maintenance OF the exchanges cost the
public annually siS0.O00.0G0 He said the
public had a right TO demand to-day:
Let the seller be honest" rather than
abide by Let the buyer beware"
Effect of Federal Regulation.
The government spends large sums OF
money 10 see 10 ii that the buyer of
meat groceries, or drugs is not deceived
\ child can go into your department
stores and buy any commodity that he
desires for exactly the same price that
the shrewdest buyer could procure; but
supposing your child went into your ex-
changes"
Then Congressman Scott went into the
evils of the exchanges as he had been
able TO observe them. He described the
Rock Island incident and subsequent de-
crease in value" to the extent of $500
0O0. and all in the space Of forty minutes
''This may be all right in New York.
he remarked. but out in Kansas we
thought it was just a Ieetle swift
He compared it to the sleight Of hand
now-yo u-see-it-and-now- you-don't artist
juggling with a cannon bail. a chair. and
a pea
He tried to sum up the public SEN
timent on the question and was forced
TO conclude that exchanges were UNI
der condemnation throughout the land
Gentlemen he said If ] were
talking to all the members of the
speculative exchange in this country.
would say to them set your house in
order yourselves. You are the ones
who can do it best
system in Cotton Trading.
President w. L. Thompson. of the
New Orleans Cotton Exchange. de-
clared he thought that the fundamental
principles were the same for all. He
said that the increase in the cotton
trade required a system embodyinE
more than the so-called spot trad
ings, and resulted in the Inaugural
tion of future selling and purchasing
contracts.
He admitted that excessive trading
in futures depressed the actual value
OF a commodity.
Vice President J. Z. +. Morrill,. of the
Chicago Board of Trade, defended his
institution. He said that the root Of the
speculative evil lay back Of the exchange.
The prosperity OF the farmers in recent
years has led TO extravaganza. Extrava-
gance manifests itself in Increased specu-
lation, and the exchanges had only re-
reflected this speculation; they had not
been the authors of IL
Prof. John 3. Clark. of Columbia. a
member of Gov. Hughes commission on
exchanges, pointed out the difficulty of
discriminating between the good and evil
IN speculation.
Vice President A r. Marsh. OF the New
York Cotton Exchange. endeavored TO
present defense against the accusations
winch came more ferceiy against this
particular institution he said. than any
other exchange. He said that they had
over So per cent of the entire cotton crop
Of the country TO handle They realized
this responsibility. 1T is safe to say"
he continued. that . per cent OF all the |
trading done in our exchange has 20 dc |
with the distribution o; actual cotton |
The sales are OF actual existing goods"