The Lee County journal. (Leesburg, Ga.) 1904-19??, 1914-04-30
sena4or Smith speaks.


change.
Senator Smith Speaks.
When the bill "to regulate trading
in cotton and to provide for the
standardization Of upland and gulf cot
ton separately" was under considera,
ton in the senate on March rs, Sena-
tor Hoke Smith explained the methods
Of the New York cotton exchange very
clearly.
He said:
'sMr. President: The purpose Of the
pending bill is to compel cotton ex-
changes, selling future contracts to SO
regulate their contracts as to make
the price list of these exchanges show
the true value of lint cotton.
ut is. to prevent these cotton ex.
changes from selling a contract giving
such undue advantage to the seller
that these who sell upon the exchange
may have it in their power to depress
the prices at which cotton sells on
the exchange.
"The plan Of the bill is to require
all exchanges engaging in the sale
Of cotton for future delivery to so
shape their. contracts as TO remove the
present unfair means by which sellers
of cotton on these exchanges depress
the price of cotton and use the eX-
changes for gambling purposes.
saThe penalties provided by the bill
are to exclude from the mails all the
business of those connected with the
exchange where this business has any
thing to do with the sale Of cotton I'M
less the contract provided in this bill
is used by the exchange, and also to
exclude from the mails and telegraph
service all price lists made on cot
ton exchanges which do not use the
contract required in this bill.
Protests Are Universal.
"This bill is especially directed at
the New York Cotton Exchange. For
years the cotton planters of the South,
the men who on the farms have raised
the lint cotton, have protested that
the market prices of cotton which
their labor brought into commerce
were trided with and depressed by a
set Of gamblers who manipulated the
price Of cotton on the New York ex-
change in manner that affected the
price Of lint cotton itself.
Recently the manufacturers OF cot
ton have joined in the protest, and
we have resolutions condemning the
methods OF the New York cotton ex-
change frc-a cotton manufacturers OF
New England and from cotton manu-
facturers OF the South Other cotton
exchanges throughout the country have
also joined in protest against the
methods of the New York cotton ex-
change. The New York Commercial
day by day condemns them and points
out the fact that the contracts sold by
the New York cotton exchange cause
an unfair fuctuation in prices on that
exchange, misleading the public as to
the true value of lint cotton. l have
here also an editorial from the Newark
News, one of the largest papers in
the manufacturing section Of New Jer'
sey, where lint cotton is largely spun
and woven, condemning the methods
of the New York cotton exchange.
$50 l begin my case in support OF
this bill with protests from all the
parties at interest against what is go
ing on upon the New York cotton ex
change.
''The New York cotton exchange han
dies over two hundred and fifty mil
lion bales annually. It's records
profess to show the sales
daily Of middling cotton and
the prices at which this grade Of cot
! ton sells in New York City Their sales
profess to apply not only to immedi
ate months, but monthly in the future
TO each month Of the year. They pro