Jefferson jimplecute. (Jefferson, Tex.) 1907-1926, 1912-11-28
DESTROYING the COTTON
MARKET By Law
Dangerous oiiis o6srst BY vhoss Whs
Themselves Aes Cropping In the
csrk, and which. ~ Pssssd.
VIII HseoIt with Oisss-
trovs Results or
the Cotton
Planter.

trovs Results or
the Cotton
Planter.
Wills Point. Tex. Nov. Is-Hon. "
T. Blackwell OF Dallas. editor Of thu
Cotton and Cotton OH News. Dallas
| spoke here this afternoon TO q large
oowd OF farmers. business men and thu
public generally on cotton. In It's varieu'
ramifcations from the ginner TO thu
spinner. He discussed the functions OF
the legitimate cotton exchanges. shove.
clearly that the country is at ses
regarding same, having confused ths
bucketshops with the legitimate ex
changes and the planter is clamoring 70
something he really does not understand
and which he would want to get rid o,
at once when he gets 1T. lie also ex-
planned and commended the plan Of the
southern States Cotton Corporation foi
holding cotton for better prices Mr.
Blackwell said In part:
1T Is amazing when we contemplat,
large majority of our farmers. many
bankers and merchants and some cottor
buyers who expect to profit by buying
Di1ndfoided cotton, actually engaged ir
an effort to limit competition In the traf-
nc In cotton, the chief agricultural pro-
Duct OF the South. by the passage oil
avs that will stop competitive buying
10 large extent reduce the bidding for
cotton to few men who, backed by
large capital. will be enabled to finance
'heir cotton. where very few are able
10 DO 30 now without the hedge, as al
present furnished by the American cot.
ton exchanges
~ Is fact that cotton and grain arr
the only commodities in the world that
nhance themselves nearly or quite up to
their full value. This IL made possible
ny the advanced method Of doing bust
ness rapidly and safely by telegraph and
cable. and the absolute safety as collat-
eral OF both grain and cotton when han
o.ed through banks and by cotton buy
ers OF known solvsncy and further pro-
tected by the hedge. The moment a bale
OF cotton hits the ground in a cotton
buyers yard at Wills Point. or any 9TH
er place anywhere at any time in the
south. 1t draws money from Europe. The
local bank, 1t IS true pays the money
Tor II to the planter on the cotton buy
ers check. This money Is al once re-
placed with the bank by draft on Dali
las or the next nearest money center
anu the bank at the money center In
turn gets It's money from its New York
correspondent on a bin OF lading on the
ed through some reputable firm OF brok-
ers on the New York or New Orleans
cotton exchanges
Thus the absolute necessity OF the
present system OF cotton futures to be
used as hedge until some better sys-
tenn Is evolved IL we permit such bills
as the Beall bill, which has passed the
mouse ana Is now pending In the sem
ate or the Smith BILL to become law II
Will stop the hedge preroga tive. These
bills are both similar In that they deny
the constitutional right to transfer a con-
tract, and both would DESTROY the hedge
by making future trading Illegal No
man could then buy or sell cotton on
contract, ana | submit that the PROPOSE
ton Is without parallel In commerce.
Just think OF cotton farmers forbidding
men to trade in their commodity except
with tho handicap that they must actu-
ally own, build or rent warehouses and
store the cotton before they can buy II
on contract? Suppose you were to pass
a law forbddins men to acquire real es-
tate unless they paid every dollar of the
purchase money and moved on 1t and
estate would pass title except for actual
homesteads? 1t does not tako much OF
financier to see that such a law would
at once depreciate every piece OF rea'
estate in the country.
Whenever any commodity IS not SUI
fciently attractive on its inertia to az
duce buying and selling the same is q
dead commodity. Whenever there Is not
ACTIVE lTdnlHR IN any commodity there
is little chance Of good prices Yet we
behold the astonishing spectacle OF men,
eager and anxious, responding as they
do to spurious sentiment begotten OF
that will all but outlaw cotton. In orde,
to make myself plain | will Illustrate the
operation and effect OF such a law.
At the present time there Is ready
sale for every bale Of cotton Of any spin.
nable grade at every cross roads In tho
entire South? Why? Because the cot.
ton buyers buy all offered at the market
price for the reason they can hedge every
bale unsold every night and thus protect
themselves. Let such laws pass and YOU
VIII see only one cotton buyer to where
you have ter now, and that buyer will
only buy your cotton when he has a spe.
cific order from the spinner, for the rea,
son that he cannot protect himself by
the hedge, and will therefore be out o,
tho market except as stated, on positive
orders. Thus, at this time when ter
bales OF cotton are offered where one ii
being spun. there would be only one bal,
bought In ten OF the cotton offered and
the result would be that the other min,
bales would have to be stored, haulet
back home or-as would most likely b,
the case forced on the narrow marke,
and at a sacrifice OF course. The result
cannot be doubtful The margin to car.
~ any cotton beyond that actually re-
CURED by the spinner would be so grea
that 1t would amount to not less thai
$40 per bale, and the farmer OF cours,
Woulu HdNe " IAy IL.
l realize that my argument win be me-
with this contention; Why not hold you
cotton ON the farms TIL the spinner need,
Il and then he will pay the price, Thi
Is the only way to get what cotton Il
worth, but how can our people do tbi
when 80 per cent Of the cotton OF IN,
country is pledged for supplies before
Is even planted?
Let me say hero. and I hope It vii
not be forgotten. that whenever III,
South gets in position TO hold even hal
tts cotton on the market tn Jan l ou
farmers Will BIO able to get the full valu,
OF cotton.
90 not blame the lawmakers at Wash.
nut l 90 blame them for not posting
themselves and telling you the daugei
That turks In these bils IL 10 a motor
ious fact that the strongest lobbyist To-
the old Scott bill was one Lewis Parker
n North Carolina spinner, president a
eight cotton mills, who said he wantel
to see the Scott bill passed because spec.
pound too high: yet the great majority
OF you farmers have been made to be.
lieve that the chief function of the Amer.
lean cotton exchanges has been TO De.
press the price OF cotton and Ess II away
from tho farmer as cheap as possible
Isn't 1t so7 Voices. Yes. that's wha,
We have been taught II tho cotton
the advocates OF the Reall bill is I; not
strange that the government IL to-day
prosecuting a few New York Spectator,
and attacking the New York exchanged
FOR putting cotton prices up' Thus W,
see tho cotton exchanges attacked by the
cotton growers for putting prices dowr
and by the attorney general Of the Uni.
tai