Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1916-02-07

forcirn merchants have been selling
.tures in the American market and
buying futures IN the Liverpool mar.
kes. and l am reliably informed that
they have made millions Of dollars by
this process Of "stradding." Under
the terms Of the smith.Lever law. as
II now stands. such hedging" and
"straddling" may not be practiced by
American dealers.
I am far from meaning 10 encourage
cotton speculation, which Is always
a dangerous game. and which some
times operates as a depressing influ.
ence in the cotton market. but much
OF so-ealled cotton speculation Is mere
ly Insurance against unexpected de-
clines. or advances. in the market and
such speculation is entirely legitimate
and tends to stabilize and eQualize
the economic value OF cotton. Surely
we all remember the condition In the
fall OF 1914. when the cotton varied
in price TO the extent OF 1c pound
on the same day In primary markets
twenty miles apart because there was
no medium Of trading and OF adjust.
ing the cross currents OF cotton com.
merce.
All these facts and circumstances
considered. II Is my opinion that in
the reenactment OF the cotton futures
act, we should permit hedging" and
"straddllng" in foreign markets just
as we permit those transactions. In
domestic markets. | cannot see that
any harm would follow and | believe
that on account OF the restraint dur.
ing the present season. there has been
considerable injury to the producers
and owners OF American cotton. The
law can be easily amended without
the scrifice Of its valuable safeguard
against dishonest trading and reckless
speculation.
The cotton futures act has corrected
many abuses In cotton trading and on
the whole II has been very helpful to
the industry from the standpoint oil
the producer without being hurtful In
the slightest degree to the spinning
industry. but in so far as II attempts
the impossible, II serves merely to
hinder the American merchant, who
is a better friend to the producer than
the foreign merchant. and In common
justice as well as in the interest of
the producer. think the American ex'
porter should be as free to deal In
foreign markets as foreign merchants
are to deal In our markets.
More than we need restrain OF spec
ulation. we need means OF informa'
.tion. We ought at this moment to
have official reports OF just what the
English spinners are doing with our
cotton. II my information is correct
and II we could have II authoritatiyely
proclaimed. we would find that the
rate OF consumption warrants a high
er price than we are receiving, but
In the absence OF official Information
We are more or less at the mercy OF
the foreign traders who are In po
sition to know just what the foreign
mills are doing and who are privileged
to take advantage o: the disparity be
tween the Liverpool market and our
markets.
am sure that our members OF con
gress, who are charged with the par
ticular responsibility OF refashioning
this important legislation. are giving
their best thought to the subject
am not seeking duly to influence their
Judgment for | have great confidence
in their intelligence and patriotism
I am only calling the matter to the
attention OF our home people In the
hope that they will study the matter
! and present such facts as they may
have and such views as they may en-
terrain as the result OF investigation
and elaboration.