The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-05-12
SMITH PRESENTS
FUTURES MEASURE
South Carolina Senator Believes it
Will Prevent CnfairneSs to
the Buyers.

the Buyers
Washington, May -9.-Senator
Smith of South CaroliIa today intro
duced in the senate, in the form of an
amendment to the pending agricul-
tural appropriation bill, measure for
the regulation Of the cotton ex-
changes of the country. The bill
which Senator Smith has prepared
represents the outcome of some 20
years of study that the junior senator
from South Caroli5a has given this
question, and follows closely the act
which he framed and which passed
the senate at the last session Of con-
gress. The measure which is now
proposed by the senator embraces the
two essential features Of the old bill,
viz, that the transactions upon the
exchanges of the country shall be ac-
cording to the classified grades as es-
/; tablished by the government aad that
if demand be made there shall be
specific delivery of the grade or
grades contracted for. The latter
feature of the measure Senator Smith
has strengthened in the pending
measure by providing that in case
cotton of grade or grades other than
the basis grade in each co2tract shall
be rendered in performance Of the
obligation thereof and the parties to
such contract shall not agree as to
the price of the substituted grade or
grades te1dered, then and in that
event the buyer of the contracts shall
have the right to demand the specific
fulfllment of such contracts by the
actual delivery of the basis grade
named therein and at the price speci-
fed by such basis grade in the con-
tract. 1t is the opinion of Senator
Smith that the provisions of this
measure will fully and adequately
regulate the dealings in cotton buy
ing and selling on the exchanges Of
the United States. Under its terms the
contracts entered into are genuine,
bona fide obligations, dealing with the
actually existing product, and the
buyer of the contract is so safeguard
ed in the settlement of his contract
i that in the event of failure Of the
parties to agree as to the price Of the
substituted grade at his own election
i the buyer may demand and receive
the actual grade contracted for at the
stipulated price. In other words, the
measure prevents the custom hereto
fore practiced wherein the seller of a
contract could deliver any grade he
saw fit with an arbitrarily fixed diff
| ference in price, whether or not such
difference was acceptable to the
buyer.
THE amendment which 1 have to-
day proposed" said Senator Smith,
"is simple in its provisions, specifying
that ali transactions in cotton shall
be made according to the grades
standardized by the federal govern
met and giving to the buyer of a
contract the right to demo-j and re-
ceive the actual grade or grades for
which he contracted at the price
agreed upon. Of course, if buyer and
seller shall agree upon the grade and
the resulting difference in price other
than the grade enumerated in the
contract. that is a matter Of their mu-
! tual agreement, ard there is nothing
! in the provisions of this bill which
! will prevent them from trading as
they see fit The difficulty which the
measure does obviate is the practice
that heretofore put the buyer at the
mercy of the seller Under the terms
of this bill, the buyer and seller are
placed upon an equal footing in the
adjustment and settlement of con-
tracts"