The Washington herald., 1913-09-02

SENATE ATTACKS
STOCK GAMBLING
Cotton and Grain Markets
Grilled by Advocates Of
Tax on Futures.
CAUCUS WILL CONSIDER
Question Referred Back to Finance
Committee-Longer Ses-
sions Planned.
CAUCUS WILL CONSIDER

For more than three hours in the Sem
ate yesterday the stock exchanges, cot
ton exchanges, and boards of trade were
under attack
The discussion turned on the proposed
amendment by Senator Clarke of Arkan-
sas, president pro tempore of the Senate,
to impose a tax Of one-tenth Of ! cent
a pound on all agreements for the pur-
chase or sale of cotton for future de-
livery. Senator Clark's amendment was
adopted by the Finance Committee, but
after a lively debate in the Senate IL was
referred back to the Finance Committee,
and will go to the Democratic caucus 20
be acted upon.
Delivery Is Insignificant.
Senator Clarke opened the debate by
a long speech in which he attacked specu-
lation in cotton. The Senator from
Arkansas pronounced the New York cot
ton exchange wholly bad" and declared
that it is "a gambling institution and
has no right to exist He denounced
the New Orleans cotton exchange as "a
parasite on the New York exchange.
Senator Clarke concluded with state
ment that the actual delivery of the cot
ton on the New York exchange amounted
to only one-half Of 1 per cent Of the
sales.
Senator Smith of South Carolina, who
mas lOT SclldlOE Slell nc -
proposal, entered a vigorous objection to
the tax on cotton futures.
Senator Cummins of Iowa made a gen.
eral onslaught on all forms of short SELL
ing. He has proposed an amendment
taxing short sales, not only of COM
modities, but also of securities. He ad-
mits that the tax he proposes is pro-
hibitive and designed to stop fictitious
sales. Some OF the Southern Senators
Arsa - NJ (NrrVf,r nirn- Thaf
wheat growers and live stock producers
were not injured by the speculative trad
ing. Senator Williams of Mississippi de-
clared that the speculative trading in
wheat did not do as much harm to the
wheat farmer as short sales of cotton
did to the cotton grower.
8 Senator Cummins insisted that it was
not the farmers of the West who were
opposed TO legislation aimed at the pro-
hibition of speculative trading in farm
products. 1T is the grain buyers in the
small cities and towns of the West who
are closely affiliated with the Chicago
Board of Trade. If you would eliminate
short sales on the stock exchanges and
boards of trade, you will put a stop to
the flow of the current of money from
the Middle West and West to the East
and will allow it to remain in the West
TO serve the purposes of legitimate in
dustry."
Senator Bristow inquired of Senator
Cummins whether it was not a fact that
more people have been ruined by short
sales than by the Louisiana lottery?"
Infinitely more replied Mr.. Cummins
emphatically. The Louisiana lottery
was a pink tea compared with the orgy
of vice that goes on in the stock mar
ket and on the boards of trade"
A diversion from the general attack
that had been made on speculative trad
ing was furnished by Senator Nelson of
Minnesota, who entertained the Senate
III a brief statement in which he de-
clareed that speculative trading in wheat
was benefit to the wheat farmers, and
they didn't want anything done to put
q stop to it.
There are two sides to this question"
said Senator Nelson. II speak from the
viewpoint of a farmer. My predecessor
in the Senate, who was interested in
milling. introduced a bill to put a stop
Il. speculative trading in wheat There
was a story current at the time that
come of our Northwestern miliers had
teen making ventures in the wheat mar
ket, and got pinched. But 1 am not
here to verify that theory.
"Of course l am ready to admit that
gambling on wheat is not in accordance
with the creed of the Apostles, but if
these men didn't gamble on wheat they
would gamble on something else. have
no objection so long as it helps the farm
er. I don't knoY why my heart should
go out to the gamblers
Market Is Disturbed.
Much of Senator Cummins' speech was
directed against short sales of securities,
and he argued that such trading dis
turbed the market
The Senate Democrats will hold a eau
srhN a,h
night thereafter until they have COM
pleted consideration of the income tax,
cotton futures amendment. and other i'm
pOrtant matters in the bill that are the
subject of controversy among the Demo-
Gratis. The attitude of the Democrats to-
ward Senator Kenyon's two amendments,
one to free-list the products of trusts and
the other to free-list aluminium, will be
determined by the caucus. 1t was pre-