Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
COTTON TRADER
FEARS CLARKE
MEASURE
Tax on Futures Contracts Will
Hurt Farmer and Help None,
Says W. B, Thompson.

NEW ORLEANS. July 3-Future
trading viii be wiped out. root and
branch: producers VIII be at the mercy
Of combinations Of purchasers, cotton
exchanges VIII be put out %. business,
thus aholishinE the forces which compel
honest trading and the total result VIII
he chaos If the Clarke amendment 10
the tariff bill. taxing futures contracts.
is adopted. says W E. Thompson. Of
New Orleans, in a telegram TO c. s.
Barrett. President of the National
Farmers Union
Furthermore, instead Of decreasing
speculation. the measure would increase
IL. by making even the spot business
highly hazardous. Mr.. Thompson says
His telegram follows;
ITO Hon. c. Barrett. President o. the
NationaI Farmers Union. Union
City, Ca:
THE Clarke amendment 10 the tariff
bin VIII not regulate future trading,
markets, will strike down all future
trading, both good aud bad Hedges
can not be bought or sold, hence the
spot cotton business will be made speCu-
lative In the last degree. This VIII mean
thar the multitude OF cotton buyers OF
small or limited means Will be forced
out OF business and the producer will
be under the necessity Of carrying his
cotton Indefinitely, or else selling IL az
the price offered by spinners or by a few
large OPERATOR or a combination Of the
same, whose business II Will be 20 spec
ulste upon. the producers necessities.
VIII Destroy Exchanges.
Furthermore. the provision in the
amendment limiting the tax and pen
atty to future contracts made on or I'M
der the rules Of any cotton exchange or
similar institution viii not only destroy
the contract exchanges Of New Orleans
and New York but will destroy all the
local exchanges throughout the cotton
belt because no man VIII hold member
ship in an institution when such TACT
subjects his private contracts to an eN-
cessive tax and renders him liable to a
penalty from $1,000 to $40, 900 for con-
Quoting his business in accordance with
the rules and regulations esta bllshed by
such exchanges for the protection and
benefit Of the trade
III all these exchanges were put out Of
business there would be no points for
the collection and dissemination Of in
formation as to conditions, and the pro-
Queer would be wholly in the dark as to
the value Of his cotton. and would be at
the mercy Of the buyer whose superior
private facilities put him into possession
% such information Moreover, II there
were no exchanges or similar organiza-
lions there could be no rules or stand
ARDS OF trade regulating and restraining
individual conduct in business, which
would result in disorderly conditions
most prejudical 20 all concerned
Can Not Afford Experiments.
In other words, the said tax amend
ment would not only destroy the futures
markets Of America, but also would dis
organize the whole system by which our
crops are moved, and place us in the
hands of foreign organizations and local
combinations Of buyers.
1T Is reported that In supporting said
amendment some Senators take this
position that while they doubt the wis
dom OF the measure. or are OF the posi-.
tive opinion that II IL unwiee and will
be injurious, still as the farmers want
IL they say let them have IL and take
the consequences,
I'VE can not afford to experiment with
such a vital matter. / am not connecte j
with any exchange in an official capacity
and have no Interest in any future bus
mess. You know that ] have given much
time and effort TO the betterment Of the
producers condition and TO improve
ment In all legitimate trade. / think
YOU Will believe IN the sincerity Of my
purpose / say to you earnestly that in
my opinion this measure is traught with
the most serious consequences to the
interests you represent and with no in
tention Of being officious. but animated
only by a sincere desire to Coopera q
with YOU IN your work for the Southern
farmer. l beg you 70 give this vital mat
ter your most serious consideration be-
fore using the power OF your great q
ganization to advance so dangerous q
measure and before you accept respon-
slbiity therefor