Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
COTTON GOSSIP

NEW YORK. July al. NJ. Anderson
says: "a great deal of interest is man
ifeSted here in the tariff amendment to
place tax on contracts for future de-
livery, and 1t is TO be hoped that every
one who is interested as a producer or
a consumer will realize the seriousness
Of such measure, as there is nothing
that could be more detrimental to the
cotton trade of this country"
Should the Government report show
conditions around so, a further advance
is looked for, as it would be considered
as bullish.
The acreage report is expected 10 show
to points increase, being around 35,-
225,000 acres planted, compared with "a
766, 900 acres in 1912 and sc, 631 900 acres
in 1911. The condition report is ex-
pected between so and 81, compared with
79.1 last month, a June condition last
year Of S0,4. in 1911 $50 and ten
year average of 500:
Dallas wires: "Texas-Panhandle
clear; balance cloudy; numerous local
rains Oklahoma-Generally cloudy"
The Cotton Exchange is refused a
hearing in the proposed tax of one tenth
cent a pound on cotton future deal
ings.
NEW ORLEANS, July 8.-Hayward &
Clark: The weather map shows very
favorable conditions, fair in Alabama
and the Atlantics; no rain; cloudy in
the rest of the belt, with fine general
rains in the central states and Ten
nesseei also Arkansas. Little rain to-
day. Indications are for partly cloudy
weather with tendency to clear, al
though some scattered showers in cen
trail States likely.
The New Orleans Times Democrat
says: "A bullish condition report, on
the eve of the Governments condition
and the acreage figures, which will be
promulgated to-day, caused some cover
lg, but the Senates threat of prohibi.
tive legislation stood as a barrier TO en-
terprlse, and the cotton market was a
4 n4 AFFAIR Thus far The, news from
Washington has all tended to SHOW a
spirit of determination among the Sena-
tors to make the Clarke amendment,
taxing future trading out Of existence,
part Of the tariff law, though some
economists assume that, since such leg
lslation is destructive and would very
seriously injure the great industry on
which the nation depends for the keep
ing Of its International trade balance on
the right side OF the ledger, the Wash
ingtOn Government will not permit ii to
become a part Of the law. With the eX-
ception OF the larger concerns, spot
buyers, merchants and exporters see
practical humiliation TO their business
IN the provisions of the Clarke amend
ment, and the consequent concentration
Of the spot business OF the South into
a very few hands
This would mean restricted competi-
ton among buyers, increased risk, and,
consequently, a greater middleman's
profit than is now realized The pro-
ducer would, of course, pay this in
creased charge. The trade as a whole
says that under the workings of the
Clarke amendment, spot cotton would
cease to be FIRST class bank collateral
in that lack Of hedging facilities would
cause the speculative risk TO revert to
the bale itself, which would necessitate
margin Of many dollars a bale be-
tween spot value ana bank value, and
this would eliminate all merchants who
could not command large cash re-
sources. Another effect of the Clarke
amendment would be the declaration by
Congressional act that tho very thing a
series of Federal Grand Juries has Ia
bored hard to declare illegal is, in fact
the only legal procedure-that of
forcing the man who has sold cotton he
does not possess to deliver cotton on
the contracts he has sold.