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

NEW ORLEANS. July 3.-Future
trading will be wiped out. root and
branch: producers Will be at the mercy
Of combinations Of purchasers, cotton
exchanges will be put out q business.
thus abolishing the forces which compel
honest trading and the total result Win
be chaos if the Clarke amendment to
the tariff bill. taxing futures contracts,
Is adopted, says w. b. Thompson, Of
New Orleans, in telegram to C. S.
Barrett. President OF the National
Farmers Union.
Furthermoye, instead Of decreasing
speculation, the measure would Increase
II, by making even the spot business
highly hazardous. Mr.. Thompson says
His telegram follows;
ITO Hon. c. Barrett, President Of the
National Farmers Union. Union
City. Ga.
The Clarke amendment 70 the tariff
bill VIII not regulate future trading,
but by destroying the future contract
markets. viii strike down all future
trading. both good and bad Hedges
can not be bought or sold, hence the
spot cotton business VIII be made specu-
lative in the last degree. This VIII mean
that The multitude Of cotton buyers OF
small or limited means VIII be forced
out OF business and the producer VIII
be under the necessity OF carrying his
cotton indefinitely, or else selling u at
the price offered by spiuners or by a few
large operators, or a combination OF the
same. whose business ii viii be 10 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 % any cotton exchange or
cir la u aaf
the contract exchanges OF New Orleans
and New York but will destroy all the
local exchanges throughout lhe cotton
belt, because no man VIII hold member
ship in an institution when such fact
subjects his private contracts TO an ex-
cessive tax and renders him liable 10 a
penalty from - 900 20 10000 for con-
Quoting his business in accordance win
the rules and regulations established by
such exchanges for the protection and
heneft Of the trade.
III all these exchanges we're 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 70
the value Of his cotton, and would be al
the mercy Of the buyer whose superior
private facilities put him into possession
Of such information Moreover, N there
were no exchanges or similar organiza-
tions there could be no rules or stand
ards Of trade regulating and restraining
would result IN disorderly conditions
most prejudieal 10 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
com bnations OF buyers
1T is reported that in supporting said
amendment some Senators take tbs
position that while they doubt the wis
dom of the measure. or are OF the posi-
tive opinion that II Is unwise and viii
be injurious, still, as the farmers wan
IL they say. let them have Il and take
the consequences
I'VE can not afford 10 experiment with
such a vital matter / am not connected
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 10 improve
ment in all legitimate trade. ! thinl
you will believe In the sincerity OF my
purpose ] say 70 you earnestly that II
my opinion this measure is fraught witt
the most serious consequences to tht
interests YOU represent and with no in,
tention Of being ufticious, but animated
only by sincere desire to coopera q
with you In your work for the Southern
farmer. beg you 20 give this vital mat.
ter your most serious consideration he,
fore using the power Of your great q
ganization TO advance so dangerous
measure and before you accept respon.
sibility therefor