Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-06
PROPOSED TAX
DIVERTS NOTICE
FROM MARKET
Cotton Men Too Busy Fighting
Clarke Amendment to Notice
Closely Daily Fluctuations.

NEW ORLEANS. July Spending
the outcome of -he proposed legisla =
ton at Washington, which would
place a prohibitive tax on contracts
for the future delivery of cotton, com
paratively little interest is being
taken in the cotton market itself Cot
ton men, who realize that the system
of contract trading in New Orleans
and New York Is absolutely essen
tial for carrying on the immense for
ward business in the South's great
staple. are more concerned in the
fight for the maintenance of contract
markets than in temporary fluctua-
lions, which, however continue to
show a steady undertone, with sup
port on all easy periods.
In the fight against the adoption Of
the Clarke amendment to the tariff
bill the New Orleans Cotton Ex-
change has enlisted the support of
all the other cotton exchanges of the
South. Already these exchanges have
begun to adopt resolutions protesting
against such destructive legislation
as that proposed by the Senator from
Arkansas. kilograms ana letters OF
protest are pouring into Washington
from the business interests all over
the South
Producer hardest Hit.
It has been clearly demonstrated by
men here who are experts on cotton
matters that while all lines OF the
cotton business will be seriously af-
feCted by the enactment of the Clarke
amendment into law, the man who
will suffer most from such ill-con-
ceived legislation will be the cotton
producer himself In the first place,
the wiping out of the contract mar
kets would do away with an army of
small spot buyers who are accus-
toned to hedge against possible
losses by selling contracts against
their purchases OF spot cotton, and
thus deprive the farmers of the bene-
fit of competition for their cotton
The logical consequence would be
that the control of the spot markets
Of the South would pass into the
hands Of a few rich interests, and
eventually, 1t is argued would lead to
the formation of a gigantic cotton
trust somewhat on the order Of that
which now has the cattle raisers OF
the United States in its grip.
No less an authority than Colonel
Henry G. Hester states that If the
Clarke amendment is adopted the
value of cotton in the South will be
lessened two to three cents pound
Buyers of spot cotton, unable to pro-
tect themselves against losses by
hedges in the contract market, will
necessarily allow a margin for posi-
BILE fluctuations in the value of the
staple by reducing the prices paid to
the producer. With the aid of the
contract market spot buyers are able
to pay full market values for cotton
and can always find an outlet for
their purchases.
Colonel Thompson's Position.
Colonel w. B. Thompson, who has
been one of the leaders of the South
in the fight for the betterment Of
the producers condition, has come
out emphatically in opposition to the
proposed legislation In telegram
addressed to President Barrett, of
the National Farmers Union at
Union City, Ca, Colonel Thompson
appeals to that organization, which
is reported to be backing the proposed
measure to give this vital matter its
most serious consideration.
After citing some of the evil con-
sequences that would flow from the
passage of the Clarke amendment
Colonel Thompson concludes his tele
gram to President Barrett as fol-
lows:
1T is reported that in supporting
said amendment some Senators take
the position that while they doubt
the wisdom of the measure or are of
the positive opinion that it is unwise
and will be injurious, still as the
farmers want it. they say, let them
have it, and take the consequences.
We can not afford to experiment with
such a vital matter. | am not con-
nected with any exchange in an Off
cial capacity, and l have no interest
in any future business. You know
that | have given much time and eff
fort to the betterment Of the pro-
duCers' condition and to Improvement
in all legitimate trade. l think you
believe in the sincerity of my pur-
pose. I say to you earnestly that in
my opinion this measure is fraught
with the most serious consequences
to the interests you represent, and
with no intention of being officious
but animated only by sincere desire
to cooperate VITA you in your work
for the Southern farmer, l beg you to
give this vital matter your most Sc
rious consideration before using the
power of your great organization to
advance so dangerous measure and
before you accept responsibility there
for"
E,ng1iSh GarnetS to