The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1912-03-21

.own with his cotton. and the buyer,
unable to hedge his purchases by sell
ing cotton against them, could only
ouy waen he had specific orders in
his pocket, and the farmer would
either have to haul il back home, or
cave II on consignment TO be sold on
an order from the mills. To pass a
national law to prevent dealing in cot
ION futures would so cripple the Am
,rican spot cotton markets that Liver
pool would AT once dominate the en-
ire cotton world and fix the price, be-
cause our cotton buyers would be
forced to transact all business on the
Liverpool Cotton Echange and thus
elothe that institution with all power.
which would be used to the dsadyan-
tage of the producer and to the advan-
tage OF the consumer because Liver
pool Is the consumers market. market.
The mills have habit OF getting out
Of the market" when tho farmer has
cotton for sale
"Wheu the mills thus seek TO de-
press prices by limiting demand, the
future contract system may be in
voked 10 sustain prices. and there is
no other agency that can create de-
mand in such contingency.
The autumns OF 1909 and 1910 were
the first years in all the history OF
cotton that the producer got good
price for cotton. while he had cotton
TO sell, and that because the Amer
lean cotton exchanges enjoyed all
their normal functions, which would
be limited by such legislation as the
Heflin bill The buyers OF aCtus' cot
ton are now able to buy cotton in the
absence Of specific orders by protect
ing their trades by future hedges
IAN enterprising Texas firm in De-
cember. 1909, did this very thing,
paying from II to 10 cents per pound
for spot cotton, hedged by future
sales, and thereby helped to maintain
ton. Is not this rrefutable proof Of
the value and the necessity of a future
system II is the farmers only de-
tense when the mills combine to keep
out of ihe market and refuse To buy
actual cotton. Is there any farmer
or politician so dull as not to com-
prehend this proposition?
The terms of the anti-future bills
expressly forbid the purchase or sale
Of cotton when the purchaser does not
intend to receive it, or the seller in
tend to deliver it. The effect of such
drastic legislation would be to pre-
vent spot purchases secured by fu-
ture sales, and the mills would be in
completo control. Even a blind man
can see this
In all products not governed by eN-
changes like cotton and grain, great
trusts have been organized and plum
dered the people. See what the Fed
eral Government has had to do to the
sugar tobacco, steel, oil and other
trusts. | know that a corporation Of
81 ,OOO,0OO 900 was tentatively formed
to corner the cotton market had the
Scott bill passed
when the Scott bill came near
passing the Senate last February 1t
broke The price of cotton $l5 per bale
because il would have killed the
American bull, the only friend to the
cotton market, while it could not
reach he European bear, the enemy
Of high priced cotton. Not only this,
but the bears secretely encouraged the
and passage Of such legis-
lation, because It is always blow
to cotton.
81 do not specially blame our Far
mers Union friends for supporting
anti-future bills, because it is always
to them as cotton gam
bling. while the necessity Of such
system for the actual legitimate spot
raffc is never explained TO them. |
make this appeal to the public at
arge, as well as 10 my audience, be-
cause ! do not want TO see our people .
commit themselves to a policy that
will prove injurious TO the best in
erests Of cotton but on the other hand
want to ask my hearers TO at once
petition their Congressman to oppose
I'll legislation that will affect our cot
on markets adversely, while at the
same time comforting corresponding
advantage on those markets TO whom
We sell our cotton
let our people wake up and study
he legitimate business which must
uffer by laws aimed a, speculation
do not at all attempt a defense OF
peculators, but realize that our leg
slators are playing with fire when
hey attempt legislation that may de-
eat the very ends they set out to at
ain. Finally ! submit that if such
bill as the Hefin bill should be-
ONE law that il would:
"GD Unsettle and completely revo-
ntionize cotton prices by making
liverpool the ruling cotton market OF
he world.
go That by depressing cotton val
es corresponding depression would
axe place in all Southern values, es-
ecially land values.
"C3D That it would require ten
ines the banking capital available at