The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-02
Hence the Psychological Dcprcs-
sion


Nothing has been done by the party
IN power mt Washington which more
clearly illustrates the enormous scope
of revolutionary innovations promoted
under Administration auspices than the
legislation. now practically completed
by Congress, purporting to regulate the
cotton exchanges, not only in this coun-
try but Of the whole world.
The so.called Lever bill to that end,
which has just been passed by the
House of Representatives, is "A substl-
tute for similar bill passed by the
Senate, but there is so much essential
agreement between the two measures
that the conference required to insure
final enactment Is expected to be little
more than formality. The natural
presumption respecting the legislation
Is that IL must he Of interest chiefly to
the cotton trade in all its branches
whereas the undertaking to which Con-
gress has now all but committed the
country Is the most monstrous polit-
Teal experiment ever attempted by
the United States In the domain of
business
Nominally the legislation aims to
regulate dealings in cotton futures by
prescribing cotton standards ard forms
Of contracts. Actually the Lever bill.
which will probably he the form Of the
statute TO 90 on the books. Is the out
come of years Of incessant effort To
perfect the South's monopoly in cotton
under the pretence Of supervising the
method Of its sale and distribution. II
10 the expressed essence Of the demand
Of the growers for a perpetual bull
market in the staple, and so far as
spinners are concerned seeks TO benefit
Southern consumers at the expense of
all other users Of cotton.
These, however, are trade concerns
They are startling enough, but they are
Of less consequence than the political
implications OF the legislation In Ques-
tion. A remarkable analysis of II was
recently published by ARTHUR RICu.
MOND MARSH, a former president of the
New York Cotton Exchange and one Of
the best equipped students of economic
subjects actively engaged IN American
business affairs He set forth the polt,
zeal Significance of the Lever bill as
Its exhibition OF the extent 10 which
the inner logic of the new theory Of
detailed regulation Of business compes
Its advocates to 60 in the direction OF
abandoning the supposed landma rks OF
our constitutional organization and Of
our law and exposed the following
features OF the bill in support of this
proposition
I'm order TO attain the ends desired II
has been necessary for the legislators to
find means Of breaking down the wall be-
tween interstate and intrastatc commerce /;
60 circumvent the provision of the Bin OF
Rights in the Constitution. in respect OF
tho right OF private contract to supersede
the courts In favor OF a department of the
Government, as ultimately determining
business controversies to devise a method
by which the price OF the larger part of a
great commodity may be governmentally
fixed. to bring the power of the Govern
ment To bear upon certain producers of "A
commodity, 10 make them meet the desires
OF certain users OF that commodity, and
to endcavor to extend the authority Of the
Government Of the United states so as to
cover commercial transactions in great
foreign couutrios,'
These are strong statements. but Mr..
MARSH proves them by extracting facts
from The bill itself. Although the Fed
oral supreme Court has repeatedly de.
cared contracts on the cotton ex-
changes to he altogether intrastate,
Congress has sought 10 reach them by
an indirect method. For this purpose
the taxing power ~ the national Gov
crnmcnt has hech invoked and sys.
tenn of excise liHposis has been Pre-.
scrlbeL coT al cotton transactions
which do moi conform to the require.
meuts or the bill,
II the objects aimed NJ can he thus
attained n tremendous beginning will
have been made in the assertion Of
Federal control over intrastate trade.
but revolutionary cndeavor does not
stop here. The right Of private con.
tract. constitutiOnally guaranteed, IS
more than infringed upon by the Sc
lection of citizens who make contracts
on the cotton exchanges for subsection
70 the edicts Of national legislation