Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-06-09
atlistsllansuus 8eadins.
THE LEVER FUTURES BILL
Author Thinks it Will be of Great
Benefit to Producer.

THE LEVER FUTURES BILL
Author Thinks it Will be of Great
Benefit to Producer.
Representative Lever, of South Caro-
lima, author of the bill and chairman
of the agriculture committee, included
in his favorable report of that measure
comprehensive analysis of cotton eX-
change transactions. The bill, says the
report, recognizes the economic value
of those cotton exchanges that use a
contract representative Of the true val
ue of spinnable cotton and levels it's
probition against those exchanges only
the value of whose contracts is suscep-
tible to violent fluctuations and manip-
ulation.
Upon such contracts the value of
which, under the rules of the eX-
changes, does not reflect truly the
value of spot cotton as it exists from
day to day in the hands of the farmers
upon local markets." adds the report,
"a tax of So bale is levied. Such a
tax, in the judgment of the trade, is alb
solutely prohibitive. Upon such con-
tracts as do represent the value of spot
cotton, no tax whatever is laid, and
this is true likewise of all spot cotton
transactions including the fob cotton,
cotton to arrive and for prompt de-
livery
Future Contracts.
The whole purpose of the bill is to
compel by law the use of such a con-
tract by the future markets, the quo
tations of the value of which will re"
fleet accurately and truly the value of
spot cotton of spinnable and valuable
quality. In the light of the best infor-
nation available, the ultimate effect of
providing a contract of the character
described in the bill will enhance, in
the opinion of experts, the cotton crop
in the hands of the farmers of the
south less than 1OO,OOO,OOO annually
Mr.. Lever said he hoped for passage
of the bill by the house at this session.
The senate measure, which was intro
duced by Senator Smith, of South Car
olina, differs from the Lever bill only in
minor details.
Its Effect.
Summarizing at length the provi-
sions and effect of the house bill. Chair
man Levers report says:
The bill compels the adoption of
the government official standards by all
future markets. 1t establishes uni
form standard of grades throughout
the country and relieves the trade of
the confusion and abuses growing out
of the present multiplicity of standards
in different markets. 1t prohibits the
use, in the settlement Of contracts, of
the logical and unsound fixed differ
ence system and substitutes therefor
the system of commercial differences in
determining the relative value of
grades delivered upon contracts 1t de-
MES to any cotton exchange the use of
any contract for the future delivery of
cotton, under the terms of which the
very low grade of cotton, reflections,
left lovers misfits and dog tails
qualities of cotton entirely unsuited for
spinning purposes-are deliverable
upon it, 1t provides that cotton of a
staple less than -eighths Of an
inch in length shall not be delivered.
Each bale of cotton to be delivered
upon a contract shall be identified by
grade with the date when the cotton is
to be delivered to the purchaser, thus
abolishing the practice of long delays
and pro forma deliveries.
Unbiased Tribunal.
1T provides that the secretary of
agriculture shall determine in cases of
disputes arising between the person
making the tender and the person re-
ceiving the same, the quality, or the
grade, or the length of staple in dis
pute, furnishing as it were an unbiased
tribunal 70 which may be referred dis
putes which involve the quality or the
grade or the length of staple of any
cotton rendered under the contract.
Provision is made for the method of
determining the relative commercial
value of the different grades Of cotton
which may be delivered upon contract,
and the secretary of agriculture is CIV
en- such power as will make it impos-
sible to manipulate the machinery by
which these differences are determined.
Power is given the secretary to es-
tablsh standards of cotton by which its
may he latarpoinal
Record of Transactions.
1T is required of all persons coming
within the provisions of the bill to
keep such records and statements of
accounts as will fully and correctly dis
close all transactions made upon any
exchange, board of trade, similar insti-
tuition. or place of business.
The bill undertakes to prevent, as
far as possible, the transfer Of the
present vicious practices of certain en-
countries.
1T is provided that any person liable
TO the payment of any tax imposed by
the bill who fails to pay, or evades or
attempts to evade the payment of such
a tax, or any person who otherwise
violates any of the provisions of the act,
or any rule or regulation made under
it, shall be fined not less than 500 nor
more than $4,000, and in case of natur-
al persons may in addition be punished
by Imprisonment for not less tina sixty
days nor more than three years and in
addition to this, may be fined $4,000 To-
be recovered in an action founded on
this act in the name of the United
States as plaintiff"