The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-06-10
THE COTTON FUTURE BILL,
COMMITTEE FAVORABLY RE.
PORTS LEVER ANTI.FUTURE
MEASURE.
South Carolina Congressman Points
Out by What Means Abolition of
Gambling is Sought.

Washington, June 4.-The Lever
cotton future bill was favorably re-
ported to the house today as q SUBJ
stitute for the bill already passed by
the senate.
Representative Lever of South Car
Olina, author of the bill and chairman
Of the agricultural committee, includ-
ed in his favorable report compre-
hensive analysis Of cotton exchange
transactions. The bill, says the re-
port. recognizes the economic value
Of those cotton exchanges that use
contract representative Of the true
value Of spinnable cotton and levels
its prohibition against those ex-
changes only the value Of whose con-
tracts is susceptible to violent fuc-
tuations and manipulation.
Upon such contracts the value of
which. under the rules of exchanges,
does not reflect truly the value of spot
cotton as it exists from day to day in
the hands of the farmers upon local
markets." adds the report, "a tax Of
IS bale is levied. Such a tax, in the
judgment Of the trade, is absolutely
prohibitive. Upon such contracts as
do represent the value Of spot cot
ton, no tax whatever is laid, and this
is true likewise Of all spot cotton
Transactions including the f. O. b. cot
ton. cotton to arrive and for prompt
delivery
1.-THE whole purpose of the bill is
contract by the future markets, the
quotations of the value Of which will
reflect accurately and truly the value
OF spot cotton of spinnable and usable
quality. In the light Of the best in
formation available. the ultimate ef-
feet Of providing q contract Of the
character described in the bill, will be
to enhance. in the opinion Of experts.
the value Of the cotton crop in the
hands of the farmers Of the South
not less than $1OO.OOOjO0O annual
ly."
Mr.. Lever said he hoped for pas
sage of the bill by the house at this
session. The senate measure, which
was introduced by Senator Smith Of
South Carolina, differs from the Lever
bill only in minor details.
Summarizing at length the provi-
sions and effect Of the house bill
Chairman Levers report says:
"The bill compels the adoption of
the government official standards by
all future markets. 1t establishes a
uniform standard Of grades through
out the country and relieves the trade
Of the confusion and abuses growing
out Of the present multiplicity of
standards in different markets. 1t
prohibits the use, in the settlement Of
contracts, Of the illogical unsound
fixed differences system and SUBJ
stitutes therefor the system Of COM
mercial differences in determining
the relative value Of grades delivered
upon contracts. 1t denies to any cot
ton exchange the use of any contract
for the future delivery of cotton. .un-
der the terms Of which the very low
grades Of cotton, 'rejections,' left
overs insists and dog tails'-qual-
tiles of cotton entire.y unsuited for
spinning purposes-are deliverable
upon It, 1t provides that cotton Of a
staple less than seven-eighths Of an
inch in length shall not be delivered
In the settlement Of such a contract.
Each bale of cotton to be delivered
upon a contract shall be identified by
grade with the date when the cotton
Is to be delivered to the purchaser
thus abolishing the vicious practice of
long delays and pro forma deliveries
1T provides that the secretary of
agriculture shall determine in cases Of
disputes arising between the person
making the tender and the person re-
ceiving the same. the quality, or the
grade or the length Of staple in dis
pute. furnishing as it were an unbiased
tribunal to which may be referred dis
putes which involve the quality or the
grade or the length OF staple Of any
cotton rendered under the contract.
provision is made for the method
Of determining the relative CONNER
cial value of the different grades OF
cotton which may be delivered upon
contract. and the secretary of agri-
culture is given such plenary power
as will make it impossible to manipu-
late the machinery by which these
differences are determined.
Authority Is given the secretary
OF agriculture to establish and