Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-24
EXCHANGE PLANS
To END COTTON
GAMBLING
New York Board Moves to Fore
stall u. S. Action-Sweep-
Trade Changes.

NEW YORK. Nov. 24-Fearful Of
drastic legislation by Congress and
smartlng from the severe criticism,
the Board OF Managers Of the New
York Cotton Exchange have prepared
sweeping changes in its rules and reg
ulations which will wipe out gambling
In cotton futures on the New York
exchange.
The pew rules and amendments will
be voted on by members at a special
meeting on December g.
In financial circles apprehension
Is felt lest this important decision will
lead to steps being taken to enforce
similar restrictions upon dealings on
the Stock Exchange. Such action
would have tremendously far reach
ing effect upon New York as a fnan-
Cial center
Action of the Cotton Exchange In
dealing this death blow to speculation
is understood to have been preclpi-
tated BY the recent proposed amend
ment TO the tariff law taxing trading
in futures one-tenth OF / per cent &
pound. or 80 cents a bale. This
amendment. cotton interests said.
would legislate cotton exchanges out
OF existence, and the fear that similar
legislation would be passed at the next
regular session of Congress has led
the Cotton Exchange to reform itself.
Checks Credit Extension.
The wholesale changes made in by
laws and rules according to Edward
X Cone president of the exchange
were "in accordance with the recon-
mendations OF the special committee
appointed by the Board of Managers
on October last, to consider the
changing Of existing type standa@s,
the question OF making such Grange
in the contract as the committee
might deem advisable, and to inquire
into the conditions of trading in this
market"
The remedy for wiping out gam
bling in futures and artificial en-
hancement of prices through the for
nation of pools, as indicated by the
Government some time ago, Is con-
teined in rule No. 81, which has just
been adopted by the Board Of Man
ayers II Is as follows:
Tho extension of credits to any
person, firm, corporation or assooa-
ton of persons-other than members
of the New York Cotton Exchange and
those actively engaged in tho cotton
trade--is declared to be an act detri-
mental to the best interests of the OK
change, and is hereby prohibited. Any
member olating the provisions Of
this rule shalrbe subject to suspension
or expulsion under section 90 (a) OF
tho bylaws.
THE words actively engaged as
used In the foregoing paragraph, shall
be construed to apply to, those per
sons who make the cotton trade their
occupation and devote to It the great
ut hal hn rtIy
Up to the Members
Prohibition of credit to persons
outside the cotton business will de-
| prive the Spectator in cotton of his
chief asset, as gambling in futures in
the past has been conducted on mar
gins.
When asked how a member OF the
eXhange would know whether or not a
prospective customer was actively
engaged in the cotton business Presi-
dent Cone, of the Cotton Exchange,
said
ut Is up to him TO f1nd out"
In a circular to members of the eX-
4hange informing them of the changes
made Mr.. Cone says:
The proposed amendment to
section 20 Ca) vesting in the
Board of Managers the power to
change standards of grade, may
perhaps be best explained by
quoting the report of the COM
mittee:
The New York Cotton Ex-
change should adopt the standard
types of the grades (and half
grades) OF white cotton promul-
gated by the Department of Agri-
culture in 1909 as the types TO be
used by the exchange for the
classification of Gulf and Texas
cotton. adding thereto one lower
grade,
That type of upland white
cotton equivalent in grade should
be prepared by the exchange
with the approval OF the Govern
ment, II possible-to be used for
the classification OF upland cot
tons and that a strong and de-
termined effort should be made to
secure the cooperation of the
Department of Agriculture and of
Congress in having such upland
types added thereto one lower
grade.
"rhat the Government Stand
ard Types be adopted with the
additions herein stated, to take
effect from and after April /.
1915"
II N