The Marietta journal and courier. (Marietta, Ga.) 1909-1918, 1914-04-10
SENATOR HOKE SMITH
ON COTTON GAMBLING
Attacks Methods of New YORK e~-
change anu '''
Adopted by the Senate

:. congress- to DIedh uP w.
III t .ba New York cotton exchange
aicb depress the price OF cotton.
"n m,h;1e # is generally understood that
lvstem of doing business roos the
cotton growers of millions OIL uoiiai >
oUnnaIly only those who nave hau
feelings with the exchange OF WHO
- studied its methods know now
=, dore II is accomplished by per-
.,.4,na the seller of cotton futures, II
actna1 cotton is demanded, 10 tenoer
sntorior GRADES of practically valueless
ton and to compel the buyer to ac-
ut - or 70 settle on an arbitrary
bosis which would cause loss In
MANY instances of as much as % a
bale.
The effect of this system is to cause
quotations on futures to be usually
about three-uuarters Of a cent pound
below the actual value OF spot cot
ton This statement can be verified
on any day by an examination or the
New York quotations on spots and tu-
tyres for the current month.
hill to correct the evils of the
New York cotton exchange, introduced
nv Senator Ellison D. Smith of South
Carolina. came up in the senate few
DAVIS ago. Senator Hoke Smith Of
fered an amendment which was &C.
ceuted by the author of the bill under
which cotton rendered on a 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.
He 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 contract giving
such undue advantage to the seller
that those 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.
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 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
me market prices of cotton which
lhelr labor brought into commerce
were trlled with and depressed by
SET OF gamblers who manipulated the
price OF cotton on the New York ex-
chahge In a manner that affected the
price Of lint cotton itself
recently the manufacturers of cot
Ton nave joined in the protest, and
we nave resolutions condemning tba
Methods Of the New York cotton ex.
Cnange from cotton manufacturers of
NE" england and from cotton manu-
laclurerS OF the South. Other cotton
exchanges throughout the country have
"'So joined in protest against the
inethods OF the New York cotton OK.
change The New York Commercial
u"y by day condemns them and noints
Jul TIE TACT that the contracts sold NV
1ue new York cotton exchange cause
on UNFAIR Huctuation in prices on that
tSCuange' misleading the public as to
,ne true value of lint cotton 7 bavo
% M also an editorial from the Newark
rvs one OF the largest papers in
one manufacturing section of New 1ar.
"Sy' where lint cotton is largely snun
q" Gnu woven, condemning the methods
o Cue Ne" York cotton exchange
.n, 80 / begin my case in supnort Of
rnls bill with protests from all tho 10
parties at interest against what t. . ro
lhs On upon the New York cotton e
o,o me New York cotton exchange han.
Eon 9 over two hundred and flfty mil.
non bales annually. It's l rsco m,i,
dan,s to show the sa,aa
t T@l'y of middling cotton 'a,e s
to nU a prices at which this grade 81 rot