The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1914-04-10
SENATOR H0KE SMITH
ON COTTON GAMBLING
Attacks Methods of New York Elk
change, ard His Amendment ls
Adopted by the Senate.

South over the determined movement
in congress to break up the methods
Of the New York cotton exchange,
which depress the price Of cotton.
While 1t is generally understood that
the system OF doing business robs the
cotton growers Of millions Of dollars
annually only those who have had
dealings with the eychangeMF who
have studied its methods know how
It is done. 1t is accomplished by per
hitting the seller of cotton futures, II
actual cotton Is demanded, to tender
inferior grades Of practically valueless
cotton and to compel the buyer to &C
cept 1t or to settle on an arbitrary
basis which would cause a loss in
many instances of as much as S. a
bale.
The effect of this system is to cause
quotations on futures to be usually
about three-aaarteTs Of cent pound
below the actual value Of spot cot
ton. This statement can be verified
on any day by an examination OF the
New York quotations on spots and fu-
lures for the current month.
A bill to correct the evils of the
New York cotton exchange, introduced
by Senator Ellison D. Smith Of South
Carolina, came up in the senate few
days ago. Senator Hoke Smith Of
fered an amendment which was &C
cepted by the author of the bill under
which cotton rendered on future
contract must have the actual market
value of spot cotton, and that settle
ment must be made on the market value
OF the cotton itself instead of an arbi-
trary difference fixed by the ex-
change.
Senator Smith Speaks.
When the bill ito 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 26, Sena-
tor Hoke Smith explained the methods
of the New York cotton exchange very
clearly.
lie said:
"Mr. 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 those who sell upon the exchange
may have 1t in their power to depress
the prices at which cotton sells on
the exchange.
1.-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.
THE 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 un-
less the. contract provided Ia 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 trifled with and depressed by a
set of gamblers who manipulated the
price of cotton on the New York ex-
change In a 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 from 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 fluctuation in prices on that
exchange, misleading the public as to
the true value of lint cotton. 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.
so / begin my case in support OF
this bill with protests from all the
parties at interest against what is so
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. Its records
profess to show the sales
daily of middling cotton aud
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. bat monthly in the future
10 each month of the wear They prp