The Daily Bulletin (Brownwood, Tex.), Vol. 15, No. 96, Ed. 1 Sunday, February 6, 1916 Page: 2 of 12
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V
TkQM TWO
WTXl
U. S. FUTURES
ACT DISCUSSED
3CASX COTTON EXCHANGES PRO
TEST AGAINST SECTION
ELEYEN OF BILL
THE BROWNWOOD DAILY BULLETIN BKOWNWOOD TEXAS SUNDAY MORNING FEBRUARY 6 1916.
HISTORY OF COTTON EXCHANGE
Brewanee 3ffaH Expiates Xetliods
or JiarfcetiH and Necessity
For Hedging.
Congress is about to reenact the "D.
S. Futures Act" which has been in
operation since the 18th of February
1915 and rwas recently declared to be
unconstitutional by one of the New-
York Federal Courts.
A great many resolutions have been
passed by the Cotton Exchanges of
the Southern States: and many let
ters have been sent to Congressmen
by merchants bankers and others
who are interested in the cotton
trade of our country protesting
against the reenactment of "Section
.11" of thi3 act which is claimed to
be a serious drawback to the legiti
mate business of cotton more espec
- ially that which relates to the expor
tation of cotton to a foreign market;
and it Is likewise regarded as a great
.menace to the welfare and Interest
of the cotton producers.
In order to arrive at the merit of
this controversy The Bulletin asked
Mr. Wm. L. Black of this city who
was one of the charter members of
the New York Cotton Exchange to
express his views about the matter;
and to explain as far as he was
able what the real objection to "Sec-
tion 11" is and In what respect it is
a menace to the Interest of a cotton
producer which he has done in the
following statement:
The U. S. Futures Act
The purpose and object of the "U.j
S. Futures Act" is to counteract a.
certain character of manipulation on
the nart of some professional specula
tors in futures on the New York Cot
ton Exchange who make a practice
of "Straddling" the Now York and
Liverpool cotton markets the nature
of which being to sell futures upon
the Liverpool Exchange and then
manipulate the price of futures on
the New York Exchange down; 'and
when: that market Is in its most de-
moralized condition they cover the
sales made in Liverpool by the pur-
chase of a corresponding number on
the New York Exchange.
Or it may be accomplished in a
different way by purchasing first on
the Liverpool market and then mani-
pulate the New York market for fu-
tures up.
It is ouite obvious that such trans
actions as these would naturally have
n demorallzlnc effect unon the busl-
ness of a dealer in the South who
might be holding cotton in a. ware-
house or one who was engaged in
exporting coton to a foreign country
and had open contracts in the New
York Exchange as "hedges" against
iheir holdings and shipments.
And the practice often resulted in
serious loss to farmers who might be
marketing coton during one of the
downward periods of manipulation
.who would ho compelled to accept a
much lower price than the supply
and demand justified.
Cotton Standards.
That there might be a better under-
standing of this matter it would per-
haps be well for me to state that be-
fore the organization of the New York
Cotton Exchange (1870-71) there
were no "standards to represent the
different erades in cotton. Each mar
ket was a "law unto itself in this
respect and made whatever standards
the dealers considered best and the
consequence was that no two cotton
markets ever used the same system for
grading cotton. Under such conditions
as this the contracting for ruture de-
UvArv cotton was impossible and to
overcome the difficulty the New York
Exchance aereed unon certain stand
ards to represent cotton in all the
markets of the United States which
were called "The American Stand-
ards." It was beldeved by many that the
plan was not feasible owing to the
great difference and variety of staple
in cotton but this trouble was re-
moved by the entire elimination of
"staple from the standards. In other
words an American Standard for
middling cotton might be of half inch
staple or below or it might have an
inch staple or above and the custom
of dealers was to offer about one
quarter of a cent less than the current-
Value il Brvt vuituu i'uiuimi
Tvhlnh was recarded a fair margin to
justify tho purchase of a mixed lot
of staple.
. Uniform XarkcUng.
It -was but a short time until) all
the markets were doing business un-
der the "American standards" and
great impetus was given to the trade;
x as well as to the productipn of cot-
ton owing to the facility with which
it could bo Bold and marketed thru
the system of futures.
For a number of years there was
no - complaint or objection to the
system from either merchant manu
facturer or farmer but after the
world was thoroughly supplied with
cotton and a surplus began to ac
cumulate in the markets of the Unit
ed States and foreign countries the
value of cotton went down and down
year after year owing to a great bur-
den of over-production which finally
culminated after the period of 1890-
95 which history records as having
witnessed the lowest priced that
American cotton has been sold for
since the Civil War.
It was during this period of over
production that the manipulation of
futures on the New York Cotton Ex-
change was started which was kept
up until the U. S. Futures Act went
Into operation last February which
did away entirely with "American
Standard" for cotton.
Section 5 of this Act provides that
if any other grade of cotton is de
llvered on a future contract than
those established by the Secretary of
Agriculture known as "U. S. Stand
ards" the seller in such contract
shall be taxed 2c per pound.
And It is further provided that the
staple of all cotton delivered upon Fu
ture contracts must have 7-S inch
staple or above and be Of a mcr
chantable character which naturally
prevents any artificial decline in fu
tures through a delivery of inferior
cotton or a very short staple which
was formerly the usual delivery on
such contracts.
Sectloa Eleven.
'Section U" provides that this tax
of 2c per pound must be paid by
any dealer who may buy or sell fu
tures upon any foreign cotton ex
change unless the -provisions in Sec
tion 5 of the U S. Futures Act are
complied with which practically pro
hibits an exporter of American cot
ton from hedging his shipments upon
any of these exchanges which is
nearly always necessary to do in or
der to make such business safe.
I am quite sure it was not the in
tertion of the trainers of the U. S
Futures Act to Interfere in nny way
with the legitimate branches of ou
cotton industry which the working ef
feet cf this -section of the bill will
certamly have upon the farming ele-
mvst in restricting the sale of cotton
and the exporters of cotton in protect
ng their interests by hedging ih?ir
business in accordance with their
ov.n judgment.
Hedging Cotton.
In order that we may more perfect-
ly understand tho necessity for and
purpose in hedging cotton I would
state that it requires fully forty to
sixty days to transfer a lot of cotton
from the interior of the U. S. to Liv-
erpool England; and if a Future is
not sold on the Liverpool Exchange
at the time the purchase of a ship-
ment Is made It might result in very
serious loss to the exporter through a
decline in price while the cotton is in
transit.
It has become almost an establish-
ed custom to hedge against each
shipment and upon the arrival of the
cotton to expose the samples for sale
to the trade as "spot cotton;" and if
it is of a desirable character and
staple it mill nearly always command
a premium of one half to a cent above
the prico which Futures command.
If there should be no immediate de-
mand for spot cotton tho hedge con-
tract is kept open but. after a sale
has been made a purchase of a cor-
responding Future is at once made to
close the hedge contract which com
pletes the transaction usually at a
very satisfactory profit to the Anier- j
lean exporter. j
I feel quite confident that when
our members of Congress have prop-j
erly investigated into the evil effect'
that Section 11 of the U. S. Futures
Act will have upon a large body of
merchants who have been attracted
to the South from all parts of our.
country as well as from England
Germany France Japan and other
cotton manufacturing centers of the!
world they will chcerfuMy and glad-j
ly eliminate this objectionable feature
In the neow bill which will in no way-
weaken its effect in preventing ma-
nipulation in our Cotton Exchanges.
And if this action Is not taken by
Congress I am equally sure that the
effect of Section 11 will so restrict
the sale of cotton as to cause serious
injury and loss to the cotton farmers
In every one of our cotton states
which must necessarily result in
great commercial injurv to the-South!
LAST TVT CALL
Christmas Banki
Our
Christmas
Banking
Club
Is the best way for men
and women boys and girls
and little folks to save
and HAVE money.
Pick out the Club you
want to join and come in-
to our Bank
We will do the rest.
IT tKmuNG
NOW Attm HAVF V V
e Club
Sxl
ss r j hil
NEXT CHRiST-MAS
COME IM WE WILL TELL
YOU HOW TO DO IT
Every man should join
and also see that his wife
and children are also
members.
It is the easiest and
most attractive plan for
saving money ever devis-
ed. Come in and let us tell
you about it.
.
What club do YOU
want to join?
WHAT THE DIFFERENT CLUBS WILL PAY YOU
lc Club
1st Wk. lc
2nd Wk 2c
3rd Wk. 3c
4th Wk. 4c
5th Wk. 5c
Increase
Every Week
by lo
Total In
50
Weeks
$12.75
2c Club
1st Wk. 2c
2nd Wk. 4c
3rd Wk. 6c
4th Wk. 8c
5th Wk. 10c
Increase
Every Week
by 2c
Total In
50
Weeks
$25.50
5c Club
1st Wk. 5c
2nd Wk. 10c
3rd Wk. 15c
4th Wk. 20c
6th Wk. 25c
Increase
Every Week
by 5c
Total In
50
Week3
$63.75
(Oc CInb
1st Wk. 10c
2nd Wk. 20c
3rd Wk. 30c
4th Wk. 40c
5th Wk. 50c
Increase
Every Week
by 10c
Total In
50
Weeks
$127.50
25c Club 50c Club SI Club
1st Wk. 25c 1st Wk. 50c 1st Wk. $1.00
2nd Wk. 25c 2nd Wk. 50c 2nd Wk. $1.00
Deposit Deposit Deposit
25c Every 50c Every $1.00 fvery
Week. Week. Week.
Total in Total in Total in
50 50 50
Weeks Weeks Weeks
$12.50 $25.00 $50.00
MAKE A START TODAY
It is easy to join the Club. Just decide which Club you
want to join; lc 2c 5c 10c 25c50c $1.00 or more and come
into our Bank with the first payment. We will make you a
member of the Christmas Banking Club and give you a Bank
Book.
We do the rest.
. costs nothing to join. It is the easy way to save and
HAVE Money.
OUR CLUB IS JOB EVERYONE
The Christmas Banking Club was planned so that all could
join by having Clubs for everyone; those of small mans; thoe
of moderate means and also the wealthy and we will welcome
your account no matter what Club yon join.
Every parent wants to teach their children to save money.
It is one of the best habits any child can have and it can be
done best by putting them into our Christmas Banking Club
where they save and bank a specified sum each week.
Come in and Join Today.
CLUB CLOSES MONDAY. FEBRUARY 21. 1916
Citizens National Bank
MARKETING AND
FARM CREDITS
FOR EXCHANGE
Two cottages 4. rooms each well
Ideated in Arlington Heights . Fort
Worth Texas one block from car
lino and paved street Price $2500.00.
Owner wishes to trade same for homo
in Brown wood..
Small farm of 110 acres clear of
dobt price $1500.00 to exchange for
;resldence in Brownwood -
W A. BELL & CO..
iPlione C3.
Land and Insurance
(
Constipation.
When costive" or troubled with con
stipation take Chamberlain's Tablets.
They are easy to takoand moBt agree-
able In effect. Obtainable everywhere.
r-AdV.
The Government Is Helping.
The government of this country has
in the last decade done a wonderful
lot to help the agricultural interests.
The Department of Agriculture thru
its manifold activities its experiment
stations its corps of trained investi-
gators its corn clubs. Its demonstra-
tion agents and a host of other agen-
cies has contributed to aid assl3t and
improve tho agricultural Interests of
the whole country.
Tho government experts in market-
ing long since have recognized the
necessity of Improving marketing
conditions and In response to repeat
ed efforts of tho agricultural depart
ment as weM as a widespread agita-
tion thru tho various agricultural so
cieties tho Wilson administration
shortly after its inception provided a
Bureau of; aMrkets as a part of tho
Department of Agriculture. The uty
of this department was to studynhe
marketing of agricultural 'products
and to devise better methods to bring
about a coordination of all forccB to
tho end that the grower and'nroduccr
would .both get tho maximum amount
of good from the products of the
country.
Several experts of this Bureau have
been and are still conducting an ex-
tensive study of cooperative effort and
it has been due in a great measure to
their efforts that cooperative market-
ing organizations have been started
in many sections. They are offering
their services to any community that
is seriously contemplating ' starting
any cooperative organization and thoyi
are constantly supplying individuals
and communities with. Information
and bulletins concerning Hits work.
In aditlon to all this thoy are do-
ing a great work ip assisting to Im-
prove the quality of tho various prod-
ucts. They have been largely In
strumental In stamping jout pests
among fruit orchards in the produce
field the orange groves and any oth-
er enemies of the field and orchard.'
It has been noticeable that when
communities become thoroughly or-'
ganized under the cooperative mar-
keting plan there is an immediate ef-;
fort made on the part of tbe' growers
to Improve their product by seed se-
Jection proper methods of tilling the
soil. etp. The goverdnment because
of the larfet amount of experiment
work that It does Is prepared to be
of great assistance to the growers in
propagating better fruit or better pro-
duce j
But the more serious work of creat-'
Ing a national marketing organization
that will adequately take care of the
marketing problem and provide a sys-
tematic efficient and equitable meth-
of distributing the agricultural prod-
ucts of tho country ha3 not been un-
dertaken. Some countries of Europe
more particularly Germany have
made rapid strides in this direction
and with the constantly growing sen-
timent In favor of cooperative effort
it is only a matter of time until the
whole of the Cooperative organiza-
tions of tho country will bo operating
under such a plan.
In a future article we will discuss
tho German plan of a national mar-1
keting organization.
This Xay Interest You.
If. you suffor with . pains In your
back or side stiff and sore muscles or
joints or rheumatic aches or have
symptoms of kidney trouble such as
puffy swellings under tho eyes or sleep
disturbing bladder ailments you.
should know that Foley Kidney PJHs
have benefitted thousands In like "con
dition. Camp-Bell Drug Co. Adv.
At the Dixlo Toaerrew.
During the course of the making
of the picture. "The Regeneration"
which is the plcturlzed version of
"The Regeneration" Owen Kildare's
story of .Mamie Rose and which is
being presented by William Fox It
was necessary to take a scene of the
burning of an excursion boat. "Skin-
ny the Rat" whi was one of the hero
worshippers of Owen KiWare In or-
der to get even with some of his en-
emies did so by burning up an ex-
cursion .boat All this Js perfectly
portrayed in "The Regeneration."
Director Walsh at great expense se-
cured an old-fashioned bargo and hun-
dreds of Bowery characters men and
women and took tho entire party
nearly 800 strong up to Glen Cove
on the East River -where it consumed
an entire day to film this one scene
at an unusually large cost It is pre-
dicted that this scene will be one Of
the most sensations of this big fea
ture" picture.
a dynamited yauh in this very laugh-
able picture.
Special music accompanies each of
these Triangle pictures and the man-
agement of the Lyric ha3 arranged for
a six piece orchestra for Monday
Tuesday tuid Wednesday nights or
each week. The Triangle productions
will be shown Monday and Wednes-
day of each week. The theatres of
Dallas Fort Worth Houston and oth-
er large cities of this state which are
showing Triangle productions are
charging from twenty to twenty-five
cents admission. Owing to the fact
that it Is the policy of Mr Stevens
never to change the pries of admis-
sion at the Lyric he wishes to an-
nounce that although Brownwood Is
the smallest town in the state show-
ing Triangle pictures there will be
no advance in prices for anv of thf
Triangle productions which will be
shown at the Lyric. Four entire
shows will be given at 3 and 4:30
Monday afternoon and 7:15 and 9:00
Monday night.
A GOOD TIME TO BUILD
The foreign demand for lumber will
make prices higher. Build or remod-
el now on money with easy monthly
payments.. V
It B E HURLBUT.
At lyric
A play Of considerable educational
value as: welii as of thrilling interest
Is "Tho Birth of Tsxas." It is a
historical drama tolling how in the
early days the courteous- but much
out-numbered doferars pi the Alamo
wore slaughtered and fcoA other
Americans avengod their death by de-
feating tho 'Mexicans ana winning the
independence of Texas.
In connection with. this . splendid
war picture "Savon by Wireless" a
two reel comedy ylUj also be shown.
There arc wild flights and' faltfs in
the air; swift auto and motor bicycle
ra'ctf on-the land and a rescue- from
Action is Satural
P. S. Meehan. Hancock. Mich..
writes: "I have. given Foley Catlmrrta
Tablets a thorough trial and can-pos-
itivoly state they are the best laxa-.
tive. I ever used. Thpir nmfnn in
naturaf no pain or griDimr. and thev.
clean the system in fino shape. Stoat
persons say the buoyant free feeling
they? bring is a blessing. Camp-Bell
Drug Co. Adv.
PASTURE F0I1 HOUSES AJTD COWS
Fine winter pasture plenty of grass
and water for horses and dry cows on
farm Just back of residence. Apply
to the farmer in charge of this plce
MXJ. WILL H. MAYES
FOJt KEJiT.
Extra good residence on Main Ave.
It ' B. E. HURLBUT.
DJt'B. L. KARRIS OSTIOPAT
m lrwawti Xatfl luk JM.
V
'It
tr 1
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White, James C. The Daily Bulletin (Brownwood, Tex.), Vol. 15, No. 96, Ed. 1 Sunday, February 6, 1916, newspaper, February 6, 1916; (https://texashistory.unt.edu/ark:/67531/metapth344700/m1/2/?q=Lamar+University: accessed June 10, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Howard Payne University Library.