The Birmingham age-herald., 1920-06-04

interest which can add to or take away value; and if within the law any busi- ness assumes to accomplish value, mak- ing fiat price, that business becomes dangerous to the interests connected With legitimate cotton handling. When ever anything attempts to make or as sumes to make fiat price, it is danger ous.
 The exchanges constant assertion that the power to tender low grades through the exchanges increases the value of these low grades and brings them into enforced use. and their method of dangling this lure before the eyes of the low grade holders and their representatives in Congress. ex- actly as a phantom minnow is trolled. is an admission of the power and ability to manipulate the market in disregard of the value fixed by supply and demand, and the energy with which they prosecute this assertion evidences their ultimate desire to re- tain the control now in their hands for a selfish advantage. The argu- ment is absolutely false and sis the camouflage with which they are con- cealing the devices for ambuscading the unwary.
 If the exchanges had the power to increase the price of low grade cotton then they would have the power which we would accentuate by law, to make value. and if they could make value, then they could increase 1t or decrease it at will, because the power to create carries the power to change.
 The history of the exchanges shows that the more low grades, which un- der the law they can tender the more usable becomes the gamblers power of assembling multiplex of off grade cotton and with it the consequent power of destroying the stability of contract market and depressing the spot cotton market, affecting both the usufruct of the hedge market and the verity of the exchange market as the index of price.
 The exchanges admit that if the pro- posed bill is passed .the price of futures contract Wnuld ad true, the contract should advance to parity of spot cotton value, and the very extent that the new delivery of one-half middling and above will ap- proximate to the value of spot cotton; to that extent will the contract price De stabilized on the commercial price of cotton, and if accomplished would rebound to every business interest.
 The claim that the bill would hurt cotton as banking proposition. in other words. injure the credit of it, is not true. On the contrary, to the very extent that it increases the sta- bility of the contract to the spot mar ket, to that very extent will be in- creased its value as banking asset. To the full extent those interested quotations-a contract quotation which Is stabilized with the market and is not subject to the vagaries made by a fictitious market, to that very extent will cotton as collateral be more de- sirable. Any business man prefers a supply and demand price back of his collateral rather than a fictitious price by a coterie of interested gam blers.
 The legislation proposed has been endorsed by the commissioners of ag- riculture of Alabama. Georgia. Florida, South Carolina and Texas; by the pres ident of the National Farmers Union: the state presidents of the Farmers Union of Texas, Alabama and Geor- gia: the American Cotton Association; Mobile. the numerous other organiza- tions, dealers. merchants and farmers. In fact where the question is under stood and uninfluenced by exchange interests. the demand for the legisla- tion is positive and emphatic. Business. men. dealers bankers man ufacturers. farmers. users and con- sumers of cotton. this bill is in your interest and is to maintain your inter- est See that your representatives in Congress understand the point of view of your interest. and have this bill en- acted into law. It is directed to pro- ton. but unless you are active every species of camouflage and every form of subterfuse that the exchanges can get out will be made to defeat it's pas