Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
COTTON TRADER
FEARS CLARKE
MEASURE
Tax on Futures Contracts Will
Hurt Farmer and Help None,
Says w. B. Thompson.

NEW ORLEANS, July Future
trading viii be wiped out root and
branch: producers viii be at the mercy
OF combinations Of purchasers, cotton
exchanges will he put out Of business,
thus abolishing the forces which compel
honest trading. and the total result VII
be chaos II the Clarke amendment to
the tariff bill. taxing futures contracts,
is adopted. says W. b. Thompson, Of
New Orleans, in a telegram TO c. s.
Barrett, President Of the National
Farmers Union.
F1rthermore, instead Of decreasing
speculation, the measure would increase
Il. by making even the spot business
highly hazardous. Mr.. Thompson says
His telegram follows;
ITO Hon. c. Barrett, President Of the
Nationai Farmers Union, Union
City, Ca:
biz viii not regulate future trading,
but by destroying the future contract
markets, VIII strike down all future
trading, both good and bad Hedges
can not be bought OF sold, hence the
spot cotton business will be made specu-
latiye in the last degree. This viii mean
that the multitude Of cotton buyers Of
small or limited means Will be forced
be under the necessity Of carrying his
cotton indefinitely, or else selling IL at
the price offered by spinners or by a few
large operators, or a combination OF the
same. whose business II will be to spec
ulate upon the producers necessities.
VIII Destroy Exchanges.
Furthermore, the provision in the
amendment limiting the tax and PEN
atty 10 future contracts made on or un-
der the rules Of any cotton exchange or
similar institution. will not only destroy
the contract exchanges OF New Orleans
and New York. but viii destroy all the
local exchanges throughout the cotton
belt, because no man will hold member
ship in an Institution when such fact
subjects his private contracts 70 an eX-
cessive tax and renders him liable TO a
penalty from 81 900 TO $50 600 for con-
Quoting his business In accordance with
the rules and regulations established by
such exchanges for the protection and
benefit Of the trade.
III all these exchanges were put out Of
business there would be no points for
the collection and dissemination OF in
formation as TO conditions. and the pro
Queer would be wholly in the dark as TO
the value OF his cotton, and would be at
the mercy OF the buyer whose superior
private facilities put him into possession
OF such information Moreover, II there
were no exchanges or similar organiza-
lions there could be no rules or stand
ards Of trade regulating and restraining
individual conduct in business, which
most prejudlcial 70 all concerned.
Can Not Afford Experiments.
In other words, the said tax amend
ment would not only destroy the futures
markets Of America, but also would dis
organize the whole system by which our
crops are moved, and place us In the
hands OF foreign organizations and local
combinations OF buyers,
1t Is reported that in supporting said
amendment some Senators take the
position that while they doubt the wis
dom OF the measure or are Of the posi- q
tive opinion that II is unwise and viii
be Injurious, sim. as the farmers want
81 they say. let them have II and take
the consequences.
I'VE can not afford TO experiment with
such vital matter. / am not connected
with any exchange In an official capacity
and have no interest In any future bus
mess You know that / have given much
time and effort TO the betterment Of the
producers condition and to improve
ment in all legitimate trade / think
YOU win believe in the sincerity Of my
purpose. l say to you earnestly that in
my opinion this measure Is fraught with
the most serious consequences to tho
interests you represent and with no in
tentlon Of being officions, but animated
only by a sincere desire to cooperate
with you in your work for the Southern
farmer, ] beg you 20 give this vital mat
ter your most serious consideration be-
fore using the power Of your great @
Eanigation to advance so dangerous a
measure and before you accept respon-
slbilitV therefor ~