The Sentinel=record., 1912-02-11

better when they depend upon the first named men to enlghten them.
 The producer Of cotton and g large per cent os the public generally have a hay idea that every detail of the
 cotton traffic. especially cotton fu- lures, is one vast propaganda satab- lished and maintained solely t7 av press the price of cotton and take it away from tue producer Gs ehssply ss possible.
 The cotton exchanges, of which thefe are but three in all the world which make the price of either spots or futures, are those of New Orleans. New York and Liverpool.
 The New York and New Orleans exchanges are the producers ex- changes, and the Liverpool exchange is the consumers exchange, and in my humble opinion both the producer and the consumer must have an exchange to create a balanced market. Alto gether the exchanges are clearing
 HAt*HfH MI tue nOttU ARlAVu IT . Without them t would be absolutely impossible for anyone to arrive at anything like a fair and equitable price for cotton
 The application of the future trade or hedge prerogative to the spot deal is what makes the cotton market and makes or cotton s cash asset and sale able every day in the year at every town and hamlet in the South. If the market was deprived of this facility, as both the Scott bill, which died in the senate the last session, and the present Hehin bill would do, cotton like rice, sugar tobacco, steel and oil, and saeable only on demand. In other words farmer might drive to town with his cotton, and the buyer, unable to hedge his purchases by sell ing cotton against them, could only buy when he had specific orders in his pocket, and the farmer would either have 10 haul it back home. or leave 1t on consignment to be sold on an order from the mills. To pass a national law to prevent dealing in cotton futures would so cripple the American spot cotton markets that Liverpool would at once dominate the entire cotton world and fix tRe price, because our cotton buyers would be forced to transact all business on the Liverpool Cotton Exchange and thus clothe that institution with all power. which would be used 10 the disadvan- tage Of the producer ana to the advan- tage Of the consumer, because Liver pool is the consumers market. The mills have habit of getting "out of the market when the farmer has cot ton for sale.
 When the mills thus seek 10 de press prices by limiting demand. the future contract system may be ln- voked to sustain prices, and there is no other agency that can create de- msSd in such a contingency
 The autumns of l9Og and 1910 were the first years in all the history of cotton that the producer got a good price for cotton, while he had cotton to sell, and that because the Ameri can cotton exchanges enjoyed all the normal functions, which would be limited by such legislation as the Hefin bni, and by the hedge preroga tive buyers of spot cotton were en- abled to support the market in the absence of demand from the spinners.
 An enterprisiug Texas firm in De- cember. 1909. did this very thing, pay ing from l4 to "a cents per pound for spot cotton hedged ny future sales and thereby helped 10 maintain good prices for the farmers spot cotton Is not this irrefutable proof Of the value and the necessity of future system? Il Is the farmers only defense when the mills combine to keep out of the market and refuse 10 buy actual cot ton Is there any farmer or politi- elan SO dull as not to comprehend this propositlon7
 "The terms Of the antifuture bills expressly forbid the purchase or sale of cotton when the purchaser does not intend to receive 1t, or the seller intend 10 deliver it. The effect Of such drastic legislation would be to prevent spot purchases secured by future sales, and the mills would be in complete oontycl Even a blind man can see this.
 Tn all products not governed by ex- 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 trus@ know that corporation of $t0OO, 100000 was tentatlsely formed to corner the cotton market had the Scott bill paseo