Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1910-02-11
GAMBLING IN FUTURES.
House Committee Hears Both Sides
of The Ouestion

House Committee Hears Both Sides
of the Question.
"This question involves hundreds Of
millions of dollars and the welfare Of
millions of people," declared T. j..
Brooks, Of Atwood, Tenn, president Of
the Farmers National union, In open
ing the hearing on the anti-option bills
before the house committee on agri-
culture last Wednesday. The proposed
legislation is designed to prohibit deal
ings in futures on boards of trade and
exchanges. The committee room was
states interested.
Mr.. Brooks declared that dealings
in futures Of cotton were no more ne
cessary than in wheat and wool and
farm implements. Hedging operations
ION change" he characterized as no
different from gambling on the rise and
fall of prices.
ION what moral principles" he ask
ed, 'is one class Of citizens obliged to
make up for the losses Of another
class, for where one gains anoth-
er must lose? The original inten-
ton of the cotton exchange to bring
the buyer and seller together has been
eliminated in the development Of pres
ent exchange practices.
I'VE are willing to abide by the re-
suits of abolishing futures" he said,
depicting the temptations held out to
the prospective victims who later come
into the game" and get frozen out"
He declared the exchanges aggra-
waited the natural situations and de-
MED that they tended to steady prices.
He believed that suckers are not all
dead" and by way of corroboration he
read newspaper reviews Of scalping
markets, sudden declines and things
done in the dark" to affect prices.
Under the shadow Of the exchanges,
been eliminated In the south, he said,
and he charged the existence Of tacit
understanding In the cotton and tobac-
CO belts for division Of territory. The
farmers union which Mr.. Brooks rep
resents, has q membership extending
over 20 states.
Characterized by Mr.. Lever Of South
Carolina as the largest consumer Of
cotton in the south, Lewis w. Parker,
a Greenville, s. c., manufacturer, con-
tended that abnormal conditions ought
to be represented In spot cotton and
contract cotton at the same time. He
said that as a rule futures control spot
cotton. He declared that the exchanges
are not of advantage, either to the con-
sumner or the producer and that 1t
seemed impossible to make the ex-
changes realize the fairness Of the COM
plants against them. He said the
fight Of his interests Is to have the
farmers properly warehouse their cot
ton and to market 1t gradually during
the season. He described Englishmen
as chary Of speculation In futures, that
the Liverpool cotton exchange Is not
used by the English for speculation
and that the Americans speculate on
Liverpool to affect prices.
Mr.. Parker declared that in the po-
sition the American spinners occupied
toward the exchanges, the English
spinners stood with the American spin
ners.
Don't you think that we would have
a picnic in buying cotton II exchanges
were abolished?" Mr.. Parker was ask
ed.
1--WE would abide by the results" he
answered. "The absence Of exchanges
would revolutionize the character OF
the present business. We would re-
adjust our business. There would be
no difficulty in effecting readjustment.
recommend regulation Of the ex-
changes. I would make the exchanges
responsive to spot conditions"
HAS the cotton producer this year
realized through speculation more than
he would have without speculation
YES" replied Mr.. Parker, but this
Is an exceptional year; nothing like
it in the memory Of the spinners. 1t Is
the first time we have had fifteen cent
cotton since I have been in business