The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-02


certain forms and provisions Of cotton
contracting as in its opinion desirable
II would he difficult to dispute Mr..
MARsH's conclusion that
Thus a way is opened for national con-
troll OF all private contracts. and no de-
partment of business can remain secure
in the belief that the free interplay of
competitive forces and the free exercise Of
individual judgment in the conduct Of the
business will be left unmolested by Con-
gross in case n SUFFICIENT portion OF that
body is brought to think that its own set
form for doing the business Is superior to
the forms which private initiative has
devised"
The process Of Government price
making is set up In American com
mercc through the provisions of the
biz which authorize the Department Of
Agriculture 10 prescribe the rules and
regulations according to which the
price of various grades OF cotton shall
he determined. This Is plain price
fixing by Government and nothing else
for. as Mr.. MARSH sdys, cit Is trans
parent subterfugc to assert that when
a party to contract is given n formula
by which he must determine the price
of his goods he is still left free to fix
the price himself
What Mr.. MARSH calls "a novelty
in American constitutional law and
most disturbing one for citizens en-.
gagged In every department Of business"
appears In the provision that the De.
partment of Agriculture shall decide
controversies over the grade and quail
ity of cotton delivered on u contract
made upon n cotton exchange. The
courts are set aside in such contro.
vcrsies and the Federal Executive nc.
quires exclusive jurisdiction over bust.
ness differences wholly contractual and
intrastatc in their nature.
Furthermore 1t is explicitly set forth
In the bill that only cotton of a mini
mum length Of fibre shall be deliverable
on cotton exchange contracts. This is
designed to have the effect Of compel
ling a large number of cotton growers
in some States to abandon the produc.
tion of certain varieties Of cotton and
substitute others therefor; and accord
ing TO Mr.. MARSH, This unprecedented
interpositlon of governmental author
ity has ms It's sole reason and excuse
the desire of cotton manufacturers in
those States TO have the cotton pro.
I,,. Tn th.,it ,.t,itft, inc t,-hnt T..
suited to their particular mills"
An Inevitable consequence of such
tremendous political meddling i'm the
business of dealing In cotton would be
to drive all cotton trading abroad. In
order TO guard against this Congress,
still resortlng to the unhnllowed use of
the power to tax not for the purpose OF
raising needed revenue but To make
it's business compulsions effective, de-
crees n prohibitive excise charge for
every bale Of cotton covered by a
contract made by person within the
United States ON any foreign cotton
exchange unless the exchange abroad
has conformed its contracts To the re-
\ VI lHt lstNtI blll. SuNS VT.
MARSH:
Nearly two-thirds OF our annual cotton
production must be sold in the countries
which make use OF these foreign ex-
changes They buy the cotton and pay us
for 1t and remove IT from our shores. But
we are TO attempt to follow II even to its
ultimate destination. still determining
upon what terms contracts for 1t shall be
made"
Wearled with years Of arHssing agi-
tation which has eliminated In the
astonishing legislation here considered.
1t is regarded as likely that the cotton
trade will offer no further resistance
to Congressional encroac hment. APP
parently the price Of an AFFECT surren-
der Is to be paid for peace, but what
folly II Is for the Administration to
sprinkle the roscwater of predicted
early prosperity on the revolution in
the political conditions Of business
which Is thus denoted