The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-06-09
THE EXCHANGE NOT FAIR
Inferior Grades To Those Con-
tracted For Are Often Deliv-
cred Speculation Controls
and Beats Down Price and
Farmers Lose Many Millions
of Profits i
(By w. +.

Washington, d. c.. June THE
passage Of cotton exchange legisla-
ton such as is contemplated In the
Senate and GUS bills which are
pending in Congress will save ten mil
lion dollars to Georgia farmers alone
and a corresponding amount to other
states, according to the value of their
cotton product, says Senator Hoko
Smith Of Georgia in a statement to-
day. None of the constructive legls-
lation passed by the Democratic adj
-ministration, he says, will yield such
quick returns to the South as this.
Opportunity for Development.
Senator Smiths statement follows:
Much legislation has passed since
the fourth of March, 1913 which Will
give an opportunity to the South Tor
the development of its resources. but
| do not believe that any Of this lesis-
lation will, more Immediately bring
a return to North Carolina and h
South than the bill which passed the
Senate and is now pending in the
House to break up the present system
Of the New York cotton exchange.
Through the New York Cotton
Exchange there is sold and bought
daily more cotton than in any other
place in the world. It's daily price
list for cotton both for Immediate
delivery and delivery during eleven
future months is published each day
in nearly every daily paper in the
| United States. The publication eX-
tends to most all foreign countries.
They fix the estimate throughout the
world Of the market value Of lint cot
ton. Many buyers in the fall instruct
their agents to buy at prices based
upon the quotations Of the New York
cotton exchange. The cotton exchange
thereby largely controls the prices to
the farmer.
Honest Delivery Sought.
THE present system Of conducting
business on this exchange permits the
seller through it to deliver in a way
that makes it possible for him to sell
lniddling cotton and deliver some
thing else, odds and ends of cotton
so poor that it is at times almost use
less for manufacturing purposes. The
system permits this delivery Of infe-
rior grade and character Of cotton
without the payment by the seller
to the buyer Of the market difference
between what he delivers and the
mlddiing cotton which is nominally
sold on the exchange.
This ability to thus get rid of an
honest delivery enables the seller to
run down the price on the exchange
much below the actual value Of the
cotton which he has sold. AS the
price lists Of the New York cotton
) go far toward regulating
the worlds estimate Of the true ya1ne
or line cotton, this running down OF
, the price on the exchange through
the ability to deliver something far
below in value what has nominaly
: peen sold. enables the seller to run
oe"n the price list Of h exchange
or cotton as he cannot be made tC
denver what he actually sold.
IT IS the concensus Of opinion Of
those with whom l have talked tha1
the actual market price of spot cot.
ION 500 by the farmer for 25 year:
has peeh forced down on an average
= a cent a pound through the svsten
USED and through the %anipulatio
conducted by the New York Cottor
I Exchange. oo''oA