Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1913-08-08

this cotton he sells out the contracts
which he had bought The market has
protected him, thus the exchanges are
used largely for the legitimate protection
against natural loss, and serves as an in
surance.
While Of course there is some specula-
ton, it is this speculation which broad
ems and makes the ready market at all
times. The speculator is the skirmish line
of battle which rather feels and fixes a
price. The Spectator will take chances
that man handling the actual commod-
ity would hesitate to take, therefore the
broadness of the markets is helped by the
SPECTATOR so that large amounts of trans
actions. in the shape of hedges, can be
effected without wide fluctuations; but il
this speculation is entirely eliminated the
fluctuations must necessarily be very
wide, therefore, while some say the pro-
test should come from the planter, the
planter is not the man who directly uses
the market though he benefits by it in a
general way more than any one interest
ed in the American cotton industry, and
he should realize that the cotton ex-.
changes are his friends.
The adoption of the Clarke Amendment
would destroy all usefulness OF the Amer
lean cotton exchanges and transfer the
cotton markets OF the world to foreign
countries. 1t would so restrict business
in America that there would be no gem
eral distribution of hourly quotations
throughout every small town and hamlet
as now exists. The markets would come
from Liverpool and Bremen. The big ex-
porter would have his market quotations
y cable while the small farmer would
sell his cotton without knowing the facts
and the state OF the market, which he
now gets through active competition at
regular intervals, be it through specula-
ton or through hedging, but it is fact
that the American exchanges are the
basis for this information. Destroy them
and the American cotton producer is in
the dark and at disadvantage
We hope the farmer realizes that it is a
fact that with the adoption of the Clarke
Amendment there would be fixed tax
of 80 cents bale for hedging contracts,
and when the local cotton buyer makes
the farmer an offer for his cotton on the
wagon, his bid price would be low enough
to justify him in taking the chance and
specializing on the market fluctuations of
the next day; 50 the farmer after all
would have to bear the burden Of this tax.
In other words the tax of so cents per
bale or $4,000 per contract reduces the
value of cotton as an asset and as a col
lateral with the bank, because protection
in all lines of business has become ne
cessity. Banks recognize the functions of
the exchanges for hedging and as capital
is timid it is the first to recognize any
safeguard that can be put about it.
| If the heads and officials of the Farm
ers' Union could realize what this legisla-
ton, il passed, means, and would try to
look at it purely from business stand
point, we feel sure they would oppose the
Clarke Amendment and try to introduce
some bill that would perpetuate the ex-
changes and encourage competition that
makes broader, protecting market for
cotton. There is speculation in every COM
modify, security and class of business
which is recognized throughout the world,
but speculation is not gambling.
Germany abolished cotton future trad.
ing some years ago, but finding that hei
people in this particular industry were Al
Ggreat disadvantage, by having no local
market, they have recently re-establishec
cotton future trading in Bremen, whert
the exchange has been opened.
Professor Henry G. Emery, who hai
been Chairman of the Tariff Board in tn,
Treasury Department, Washington, deal
at length with this foreign situation il
his report on the subject Of Commerce.
insurance Against Necessary Bushes
Risks Through the Use Of the Commod
ity Exchange"
We trust that this viii appeal to yo
and that you will find it consistent +
lend your aid and influence in opposition
to the Clarke Amendment, and will max
it point to Immediately file your prote.
with your Senators and also with you
| Congressman, so that when the bill com,
| up for Joint conference between the Hou.
and Senate, before it passed, your Coz
7ressmen win be thoroughly posted an
- oppose the Clarke Amendment. Plea