The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-05
SAYS COTTON BILL
ENRICHES GROWERS
House Committee Assures Fed
eral Regulation Of Futures
on Exchanges.
BAN PUT ON MANIPULATION
Amendments Prevent Abuses
and Add S1OO,O0O,0OO to
Farmers Receipts.
BAN PUT ON MANIPULATION

WAsHfNoroN, June @.--rederal reGula-
tion Of exchanges that deal in cotton
futures seems to be assured a. q result
mittee on Agriculture. The committee
made report on the cotton future bill
passed by the Senate, amending It in sew
eral particulars.
The bill goes further than the nero
regulation OF cotton exchanges. II COM
psls the adoption OF the Government off,
cial standards by all future markets. The
regulations proposed are elaborate ana
the bill clothes the Secretary OF Agricul-
ture with power to see that they are OBJ
served
The whole purpose OF the cotton future
bilrae 10 compel the use OF contract by
the future markets whereby there will be
reflected accurately and truly the value Of
spot cotton Of splnnable and usable
quality" says n report on the measure
filed by Representative Lever OF South
Carolina, chairman OF the House COM
mttee.
"In the light OF the best Information
available the ultimate effect OF providing
a contract Of the character prescribed In
the bill will be TO enhance the value OF
the cotton crop In the hands OF the farm
ers OF the South not less than sioo,ooo,ooo
annually"
Strikes blow AZ Manipulation.
The report says further:
The bill recognizes the economic value
OF such exchanges as use a contract rep
resentative of the true value OF spinnabl
cotton and levels its prohibition against
those exchanges only tho value OF whose
contracts Is susceptible to violent fuctua-
lions and manipulation.
upon contracts the value OF which
under the rules OF the exchanges does not
reflect truly the value of spot cotton as
exists from day to day In the hands OF
the fasmers tax OF $500 Is levied. Such
a tax, in the Judgment Of the trade. is
absolutely proh!btive.
Upon such contracts, however. as do
represent the value OF spot cotton. no tax
whatever Is made. and this Is true like
wise OF all spot cotton transactions In
Guiding the I. o. b. cotton, cotton TO
arrive and for prompt delivery
The bill compels the adoption of the
Government official standards by all fu-
ture markets, thus establishing a uni
form standard OF grades throughout the
country and relieving the trade OF the
confusion and abuses growing out OF the
present multiplicity OF standards In DIFF
ferent markets.
Provides Commercial Differences.
ut prohibits the use. In the settlement
OF contracts. of the illogical and unsound
fixed difference system and substitutes
therefor the system OF commercial diff
ferences in determining the relative value
Of grades delivered upon contracts. II
denies to cotton exchanges the use Of
contracts for any future delivery or cot
ton. under the terms of which the very
low grades OF cotton-'reJections,' left
overs insists and 'dogtails-qualitles
of cotton entirely unsuited for spinning
purposes, are deliverable upon 1t, and
provides that cotton OF the staple less
than seven-elghths OF an inch In length
cannot be delivered in the settlement of
such a contract.
Under the provisions OF the bill each
bale OF cotton to be delivered upon a con-
tract shall be Identified by grade. with the
date when the cotton is to be delivered
by the purchaser, thus abolishlng the
vicious practices OF long delays and be-
lated deliveries"