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

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It's sales far exceed those Of any other
cotton exchange and all other cot
ton exchanges. The records Of irs
daily prices are sent by the press as
sociations to each paper In the Unit
ed States which handles reports from 9
press association. Its daily price lists
have circulation throughout the Uhlt-
ed States and throughout the world
far in excess Of all other price lists
IN the United States indicating the
market price OF cotton.
THE public generally understands
that cotton is really bought and sold
: on the New York exchange, and that
a purchaser under their published
prices can buy for immediate or fu-
/ ture delivery middling cotton at the
! prices indicated by their price lists.
4 Y must therefore, appear at once that
the price lists which go out from the
New York cotton exchange have an
/ almost controlling influence on the
market price Of cotton.
Depresses the Price.
1T can be accepted as undoubtedly
true that an unfair depression Of the
+ price upon the New York Cotton Ex-
| change depresses also the price OF
lint cotton all over the south, Indeed,
ii is fact that many large buyers Of
lint cotton instruct their local buyers
to purchase by the price lists Of the
New York exchange, requiring them
to bid the New York exchange price
less about one-half a cent a pound.
so, if I show that a contract 10
used on the New York Cotton tx
change which enables sellers in that
exchange to unfairly depress the price
on that exchange OF cotton for the
present and future delivery, show
/ that this exchange takes the hard
/ earnings of the farmer away from him
by preventing him from receiving q
| just price for his lint cotton
IF i show that their contract is one
which enables them to put up and
down their own prices almost as they
see fit, j show that the manipulation
Of the market on this exchange is
damaging to the manufacturer and the
cotton merchant as well as the cot
ton grower.
Crop Worth Billion Dollars.
Lint cotton is the second greatest
agricultural product Of the United
States; corn comes first. The crop
last year, including the seed, was
worth 81, 600, 100000. A large part Of
the crop is shipped abroad Upon it
our country depends to a great ex-
tent for it's international trade bal
ances. That portion of the crop which
is manufactured in the United States
furnishes occupation for large num-
Der Of citizens, and is one OF our chief
raw materials for manufacture. The
Importance, therefore, Oh the staple,
both as it applies to our international
trade balances and as it applies TO the
producer and the manufacturer, is APP
parent.
Il charge that the New York Cotton
Exchange handles its business under
a system which is unfair and disrepu-
table. The system permits the man
ipulation of prices for gambling pur-
poses, and it is continuously used to
raise or lower the the market prices
Of lint cotton to meet the wishes Of
the manipulators. This is unjust to
the producer of cotton and to the
manufacturer and is an unfair stab at
the interests of our entire country.
my charge is that, instead of being
a legitimate exchange furnishing the
opportunity for those who have cotton
now or will have it in the future to
trade with those who need 1t now or
will need it in the future, the New
York Cotton Exchange has devised a
scheme by which the seller can SO
tender to a purchaser cotton that the
purchases can not take; or if he does
take it, he receives something he did
not buy, worth much less than the
legitimate market price Of the cotton
which he was. supposed to buy
Shameless Robbery.
"My charge is that the New York
Cotton Exchange contract, with the
rules and regulations surrounding it,
creates a system of doing business
which amounts to little less than
gambling and enables the inside
crowd to play with the outside crowd,
the inside crowd holding and seeing
all the cards, with every opportunity
to fleece their outside customers.
Il wish to point out some features
Of their contract and mode Of business
at least sufficient to justify my
charge.
First: Number Of grades. The
New York Cotton Exchange uses I'M
der its system large number Of
grades of cotton. While middiing is
the basic grade of all sales, they re-
tain the right to the seller to deliver
any one of the grades named in their
list, and their list covers 70 grades of
cotton besides middling. A purchaser
may buy 100 bales of middIing cot
1 ton. He may have use for 100 bales
Of middling cotton in his own mill, or
/ he may have a customer who desires
the cotton and will use it at his mill.
When the purchaser, through the New
York Cotton Exchange, receives the
cotton. although he bought middling
cotton. he may have delivered to him
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