Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-11-10
ROBBlNG The FARMERS
Southern Cotton Farmers FlGGCed
Out Of Millions Annually.
INSIDE WORKINGS OF CROOKED GAME
Price of Great Southern Staple Fixed
Not by Supply and Demand OF Raw
Material; But by Manipulation OF
Gamblers Dealing In Millions Of Fu-

lures.
w. NJ. Butler in Dearborn Independent.
Few understand the technical oper-
ations of cotton exchanges, and the
inside machinery conducive to the
manipulation of prices. To this lack
of knowledge may be partly attributed
the deficient legislation that has from
time to time been enacted against cot
ton exchanges.
Exchanges in general, and the New
York Stock and Cotton Exchanges in
particular, are like giant spiders spin
ming an interminable web over the
commercial economy of the nation,
catching the unsuspecting adventurer
in business. The spinning has been
carried on so long, and has so many
ramifications of political strength, that
the threads of the web have become
like cables of steel, which can be cut
and destroyed only by the steel-saw of
public opinion sharpened to the actual
truth Of the case.
The mystery of cotton exchanges
their history, function, use and abuse,
and how these giant gambling palaces
keep within the law and thrive, consti-
tute story well worth reading.
At the feast of the New York Cotton
Exchange in 1920, in celebration Of the
fftieth anniversary Of its organization,
q pioneer member told how cotton ex-
changes came into existence. He said
that back in the fitties and sixties, cot
ton merchants traded in q more primi-
tive way, more from hand to mouth,
and had not developed the great mod
ern system OF buying and selling for
future delivery, of contracting for
heavy deliveries for ahead, which sys-
TEN, as we know, gives q tremendous
expansion of business, and, further
more, instills into it high sense of
honor and trust, and develops business
acumen. Their trading was on a mar
protective facilities for largescale
trading such as highly organized in
surance companies to assume the risks
on their stocks.
AS the demands of trade grew, how
ever, one New York merchant took the
! initiative by offering to deliver cotton
TO Il foreign buyer, at n fixed price on
a future date several months ahead.
That transaction was the forerunner
of the establishment of the New York
Cotton Exchange. A few years later,
in 1870, the exchange was establish
ed. Thus, the cotton world was given
n liquid trading center for dealing in
cotton for future delivery.
There are two official cotton ex-
changes, the New York Cotton En-
change, which is the leader, and the
New Orleans Cotton Exchange. These
are known as cotton-future exchanges,
since they are markets for trading in
futures" that is, cotton for future
delivery.
There are four great cotton-future
exchanges in the world the two in
| America, one in Liverpool and one at
| @hiNNtiIiul I'l, pl. NOliOll -luluIc tN-
changes have also been established at
! Havre, France, sac paulo, Brazil,
Yokohoma, Japan and at New Bed
ford Massachusetts, the latter for
trading in cotton of long staple variety,
such as the fancy varieties grown in
the far west, and off the coast of the
Carolinas. These exchanges are OF
minor significance as speculative mar
kcts when compared TO the four first
named.
Cotton Futures and Market.
a seat on the New York or New
Orleans Cotton Exchange sells rs high
rs $4,000. The New Orleans Cotton
Exchange occupies a magnificent new
structure, a show place of that city.
The New York Cotton Exchange is
constructing million dollar
building for its future home. Thus.
the official exchanges are preparing
for an expansion of speculative trad
ing and are apparently confident Of the
future.
|. There is distinction between a
cotton-future exchange and a regular
cotton market where the world buys
supplies Of cotton. Cotton markets
are located principally in the southern
states, near the heart of cotton grow
ing sections. in cities such as Calves
ton and Houston, Savannah, Mont
gomery, Memphis, and so on, and are
called spot markets" Great quantities
Of cotton are shipped to these
markets, where it is sold to street
buyers and merchants, or stored in
warehouses to he sold to factories and
mills. The lifeblood of the cotton
growing world flows through these big
spot markets. where transactions for
actual cotton take place.
On the future exchange, however,
cotton is never seen. A visitor to one
Of the exchanges has the impression
at first that he is entering bcdlam. or
perhaps wild animal show 4 dense
crowd of 80 or 60 mon are hovcrcd
over Sunlen pit. waving arms and
yelling in hOarSc voices IOud pnOufrI,