The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-07-08
CHAMBER OPPOSES
CLARK AMENDMENT
SPECULATION ABSOLUTELY ESSEN
TIAL FOR A HEALTHY CONDI-
. TON OF BUSINESS.
PROTEST FUTURE TAX
DIRECTORS HEAR DISCUSSION OF
PROPOSITION FROM INTERESTED
MEMBERS AND ADOPT RE-
SOLUTIONS.

Holding that speculation is abso-
lutely essential for the promotion of
a healthy condition of business so
far as farm products are concerned
preventing undue depression in prices.
and permitting dealers to buy and
sell freely for future delivery against
their stocks--the board of directors of
the chamber Of commerce yesterday
adopted resolutions opposing the pro-
posed amendment of Senator Clark to
tax cotton futures to the pending
tariff bin to tax cotton futures.
Letters written to Virginia senators
and representatives in congress in
voking their cooperation in oppo-
sition to the amendment were read
to the meeting, and s. Dabney Cren-
shaw. Henry w. Wood, II. l. Cahell
and w. + Richardson presented the
matter to the attention of the cham
Der in brief but pointed speeches, all
in opposition to the proposed action.
The speakers pointed out that the
effect of the amendment will be to
practically transfer trading in cot
ton futures to the Liverpool cotton
market, making that point the CEN
ter of trading rather than New York
and New Orleans. which would be
detriment to the trade in this coun-
try.
The Resolutions.
At the close of the meeting the
directors unanimously adopted the
following resolutions
Whereas the proposal of Senator
Clark to engraft upon the tarin bill
pending before the finance commit
tee of the senate a provision imposing
stamp tax of one-tenth Of cent
pound on all contracts for cotton sold
or bought for future delivery:
Would not be regulative, but would
be- prohibitive of general trading In
futures;
Would as a consequence practically
break up the cotton exchanges in the
United States:
Would transfer the control of cotton
from the producing country to Euro
pean exchanges representing the in
terests of foreign commerce.:
Would defeat the purposes OF the
provision as a revenue measure or
producer;
And result in a great reduction in
the value of the cotton crop which
constitutes one of the chief factors in
maintaining the balance of trade In
favor of this country; therefore be 1t
Resolved. That while this chamber
heartily approves of full and effective
regulation of all dealings in futures.
and in supervision OF the rules OF the
exchanges governing such transac-
| tons, their pm hhcity, quotations. etc.
for the purpose of prohibiting and
preventing all unlawful corners or
combinations and other evil practices
which have been at times, attributed
to the existence of these exchanges.
however just or unjust that charge
may be:
Yet IL earnestly protests against
the proposed stamp tax on futures,
confidently believing that 1t win he
a I.y~ H. t~ty
cry of commerce in cotton, which
constitutes a system recognized as ali
solutely necessary for the conduct of
modern business. so that not only will
the exchanges be put out of business,
which furnish market quotations In
dspensable to the producer and seller
of cotton. as well as to manu-
facturers and dealers but II will un-
settle the standards of value, deprive
! legitimate interests of the opportu-
nifty to hedge. impair the collateral
value of the staple. especially at in
terror points; tend TO force excessive
shipments to consuming markets for
financial considerations, and result In
gluts and depression, thus Introducing
an element of uncertainty and spec
ula;ion by the very legislation intend
ed to prohibit and present. II.
Second. In substantiation of the
most important objection to the meas
ure, namely, the injury to the cotton
planters. attention is respectfully call
ed to the attached copy from the
Florida Times-I'nion.
Third That this chamber invokes
the active aid of the senators from
Virginia 10 defeat the proposal OF
Senator Clark to impose tax on
sales of cotton futures, before the
finance committee. II that be posi-
bic: but If not possible before that
committee. then when the amend
ment is considered by the senate or
by the conferees of the two houses
of congress.
Further, that all members of the
! house Of representatives from Nir-
gnia be urgently requested to use
their active aid and influence in OPP
position to the measure referred to
above at every stage of Its progress
until 1t shall have been disposed OF
by the congress.
Times Union Article.
The copy OF the Florida Times
Union, referred to above. reads as
follows:
We think congress attempts class
legislation when 1t imposes q tax on
cotton sold for future delivery, and
does not impose one on stocks. grain
or provisions sold in the same way.
And the cotton grower will turn out
to be the goat.
From twelve to fifteen million
bales OF Southern cotton are gath
orcd HnrirC 40 prfhu nf ConfA m ar