Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-27
introduces Separate Bill to
Provide for a Tax on
Cotton Futures.
WOULD HEAL THE BREACH
IN TARIFF CONFERENCE
Retains Essentials of Senate Amend.
ment, But Altered in Work
ing Details.


ment.
Under the bill a stamp tax is provided
and revenue stamps are to be attached
to contracts in cotton futures.
Persons violating the terms of the bill
are liable to fines of 500 to $4,000, OF
Imprisonment from one to three years. A
penalty of $1,000 upon all contracts that
violate the bill is provided also.
The Underwood plan opens the way to
an immediate agreement on the tariff
bill. The method would be for the con-
ferees to strike from the tariff bill the
entire section relating to a tax on cotton
futures, and, IL this met the approval of
the two houses. becoming the subject to
be dealt with by separate legislation.
Retains Proposed Tax.
The Underwood bill retains the pro-
posed tax Of one-tenth Of 1 cent pei
pound for all purely speculative cotton
trading.
This tax, however, would be reduced
is known as contract" embracing 100
bales of 500 pounds each, in case the
contract specifies certain provisions that
make 1t conform rigidly to the govern
mens's standard Of cotton grading.
The contract would specify the number
tract, the price per pound of middling
cotton to be known as the basis grade
at which the cotton Is contracted to be
bought or sold; the date Of the purchase
or sale and the month in which the con-
tract is to be fulfilled or settled.
Provisions Of Contract.
1.-The contract must also provide"
says the bill. that the cotton therein
MI hon ho i<h
In the grade limit fixed by the Secre-
tary of Agriculture, to wit. within the
limit middling fair and good ordinary,
inclusive. on the presently existing
government standard. and no other
grade or grades" and the contract
must further provide that in settle
ment OF such contract by the actual de-
livery of the cotton involved therein.
where cotton other than the basis
grade Is delivered. the difference above
Or below the contract price which the
receiver shall pay for such grades shall
be determined as hereinafter provided"
This difference is to be determined by
the actual Commercial difference in val
ue" of the different grades Of cotton es-
tablished by bona fide sales of spot cot
ton OF the same grades made in actual
trade upon the sixth business day prior
to the settlement of the contract in the
market where the future transaction
Is no spot cotton market at that point
the prevailing price Is to be established
by securing the general average in FIVE
other spot cotton markets; and these
markets are restricted to places that
shall be designated as bona fide markets
by the Secretary of Agriculture.
Bill Soon to Be Law.
The tariff bill is about to become a
law.
With the stroke Of the pen which will
complete the Presidents signature to the
bill, history will record the first act of
the democrats to redeem their promises
to the people, made by them in the con-
vention at Baltimore when Woodrow Will
son was nominated after long hours of
weary balloting. It will be a target
for republican assault in the coming cam
paigns-state. congressional and national
and II the bill bears out the wishes and
q rallying point, around which democrats
will gather In their plea for further sup
port.
1t is the first of the projected demo-
cratic reforms. The second one Is in the
hands of the banking and currency COM
mittee OF the Senate. In the language of
Speaker Clark, the tariff is revised down
ward 'by the blessing Of God"
War Waged on Protective Tariff.
For sixteen years democrats have been
fighting protection. Now they are about
to make the holes in the protection ram
parts, and republicans. content to let
their old-time enemies have all the free
trade and reduced tariff possible, are
gathering their strength in those districts
where reduced tariff will undoubtedly
cause trouble to manufacturers, and the G
o. p, under any name you may choose
to call 1t. is going to take advantage
of every flaw in the bill; will point to
every factory which cuts down its force
or stops altogether. every decreased out
put, II any. In short, all sorts Of ills
misfortune. bad luck and evil chance are
to be laid at the door of the Underwood
tariff. for the next four years, at least.
The bill is the widest revision of tariff
rates and carries the most radical revi-
sions Of general revenue laws seen In
this country In years. Along with the
try's funds are provided for by an in
come tax which will no doubt be the
subject Of fights without end in the
courts The general theory Of the in
come tax is that men who amass for
tunes ought to be made to stand the ex-
pense of the government. while the little
fellows, whose income Is sufficient only
TO care for wife and home and family
have no tax to pay except the indirect
tax through the much reduced tariff.
In Interest Of Common People"
The theory of the reduced portions OF
the import duties is that by letting In
competition on the things necessary for
everyday life the consumers, 1.-The common
people" will be able to buy much cheap
er than they have been able to do under
the protected Industries which have
grown to such enormous proportions un-
der the republican rule. The great
wheat, rye, barley and oat fields of Can.
ada will send to the United States much
| of their yield at no cost Of duty. whereas
Canadians have had duties imposed upor
their cereals. ranging from 10 per cent t
25 per cent advalorem. Canadian lum
Der. Canadian wood pulp. Canadian furs
| fish and vegetables will have free, O,
nearly free. entry.
wool will come from Australia, Eng
land, and from the mountains Of Asia
and Europe. and for the first time II
wears no duty will be imposed upon thi.
product. Manufactured wool. cloths
clothing, ETC.. will come In under great,
i