1892. CONGRESSIONAL . RECORD-SENATE. 6551
Chief of the Bureau of Navigation in the Navy Department. Also, affidavits relating to House bill 9570-to the Committee (Report No.1989.) on Invalid Pensions. By Mr. PAGE of .Maryland, from the same committee: By Mr. COOMBS: Petition of the Allred C. Chapin Club oi A bill (S. 2266) for the relief of Louis A. Yorke. (R.eport No. Brooklyn, N.Y., requesting an inquiry in relation to the detention 1990.) of Dr. Gallagher-to the Committee on Foreign Affairs. A bill (S.1999) for the relief of John G. Rose. (Report No. By Mr. CURTIS: Petition of Henry B. Damon and 21 others 1991.) o~ Adams, Jeff~rson County, N . Y., a.gainst the passage of any By Mr. WILSON of Missouri, from the Committe-e on Pensions: b1ll or resolutiOn to close the World's Fair on Sunday-to the A bill (H. R. 2909) to increase the pension of Joseph Craig. Select Committee on the Columbian Exposition. (Report No. 1992.) ~y Mr. GOODNIGHT: Evidence to accompany bill for the A bill (H. R. 7375) granting a pension to Mary Hollis. (Re relief of John P . .Kinslowe, of Brownsville, Ky.-to the Commit port No.1994t tee on Invalid Pensions. A bill (H. ·R. 8230) for the relief of Louis G. Sanderson, of Also, petition of Ben. a Coursey, of Sharon Grove, Ky., to Craighead County, Ark. (R-eport No.1995.) accompany bill for relief-to the Committee on Military Affairs. A bill{H. R. 8907) to increase the pension of JohnMalloy. (Re- By Mr. McCREARY: Petition of Richard Boyle, late sergeant port No. 1996.) • of CompanyE, Tenth Kentucky Volunteer Infantry, a 3king that A bill (H. R. 9590) granting a pension to Cornelius Day. (Re Congress pass a bill granting him a .pension of at least $12 per • port No. 1997.) month-to the Committee on In valid Pensions. A bill (H. R. 4916) granting a pension to Thomas Tucker, Bat By Mr. MARTIN: Papers to aecompany House bill9093, grant tery A, Fourth United States Artillery. (Report No. 1998.) ing a pension to Elvine Brown, was referred to the Committee on Invalid Pensions and re-referred by that committea to the CHANGE OF REFERENCE. Committee on Pensions-to the Committee on Pensions. By Mr. MOORE: Papers in the claim of W. L. Springfield, Under clause 2 of Rule XXII, the-Committee on Pensions was late postmaster at Bellville, Tex., to accompany House bill-to • discharged from the consideration of the bill (H. R. 9051) grant the Committee on the Post-Office and Post-Roads. ing a pension to Hester A. Robinson, and the same was referred Also., petition of Frederick Bernard and others of Texas1 for to the-Committeeon Invalid Pensions. relief-to the-Committee on Claims. By Mr. PATTON: Papers to a{}company House bill 7051, grant BILLS, MEMORIALS. AND RESOLUTIONS. ing a pension to Isaac W. West-to the Committee on Invalid Under clause 3 of Rule XXII, a bill of the following title was Pensions. introduced. and referred as follows: Also, papers to accompany House bill9601, granting a pension By Mr. STEPHENSON: A bill (H. R. 9627) to amend section to Mary A. McGlinnin-to the Committee on Invalid Pensions. 133 of an act entitled "An act to reduce the revenue -and equal By Mr. SHELL: Petition of citizens of Laurens, S. C., re ize duties on imports, and for other purposes, approved October monstrating-against the passage of the Brosius lard bill, H. B. 1, 1890-to the Committee on Ways and Means. 395, and praying for the passage of the Paddock pure-food bill to the Committee on Agriculture. PRIVATE BILLS, ETC. By Mr. SHIVELY: Three petitions of citizens of Indiana, as follows: One of F. J. Davis and 32 others, of La Porte County, Under clause 1 of Rule XXII, private bills of the following protesting in the name of organized labor, the second of William titles were presented and referred as indicated below: J. Girdis and 32 others, of La Porte County, in the name of-or By Mr. BRYAN: A bill(H.R. 9614)topensionJohnM.Linch ganized labor, and the third of William F. Frank and 2.S others to the Committee on Invalid Pensions. By Mr. BRUNNER: A bill (H. R-9615) granting a pension to of La Porte County, all against closing the Columbian Exposi~ H. .J. Smith-to the Committee on Invalid Pensions. tion on Sunday-to the Select Committee on the Columbian Ex By Mr. CAPEHART: A bill (H. R. 9616) for the relief .of E. position. By Mr. CHARLES W. STONE: Petition of Eldred Local As L. Neale, for the estate of W. L. _Neale-to the Committee on sembly, No. 3903, Knights of Labor, against any appropriation to War Claims. the Columbian Exposition while the attitude of its manaCTement Also., a bill (H. R. 9617) for the relief of Marlin Parks, late toward organized labor remains unchanged-to-the Select-com firstlieutenant Eleventh West Virginia Volunteer Infantry-to mittee on the Columbian Exposition. the Committee on Military Affairs. By Mr. CABLE: A bill (H. R. 9618) to grant a pension to Mary By Mr. WALKER (by request): Petition of George W. Cavi Garner, widow of James Garner-totheCommitteeon Pensions. ness and 31 others, of Worcester, Mass., against the passage of By Mr. GOODNIGHT: A bill.(H. R. 9619) for the relief of Ben any bill or resolution to clo.3e the World's Columbian Exposition Mili on Sunday-to the Select Committee-on the Columbian Exposi- H. Coursey, of Sharon Grove, Ky.-to the Committee on ti~ - tary Affairs. Also, a bill (H. R. 9620) granting-a pension to John P. Kins Also, petition of A. F. Crooker and 4others, of Oakdale, Wor lowe, of Brownsville, Ky.-to the Committee on Invalid Pensions. ~ster County., Mass., against the passage of any bill or resolu tiOn to close the World's Fair on Sunday-to the Select Com By Mr. MOORE: A bill {H. R. 9621) for the relief of W. L. mittee on the Columbian Exposition. Springfield-to the Committee on the Post-Offic~ and Post Mr. WHEELER of Alab3:ma: Petition of JohnS. Tate, ad Roads. !3Jr Also, a b-ill (H. R. 9622) for the relief of Frederick Barnard mmistrator of the estate of S1dney F. Tate, fur relief-to the and others-to the Committee on Claims. Committee o.n War Claims. By Mr. SANFORD: A bill (H. R. 9623) for the relief of Betsy Lovell-to the Committee on Invalid Pensions. By. Mr. TARSNEY: A bill (H. R. 9624) for the relief of Lewis SENATE. W~ Smallwood-to the Committee on Claims. By Mr. w-lLLIAMS of Illinois: A bill (H. R. 9625) granting a FRIDAY, July 22, 1892. pep.sion to John C. Drennan-to the Committee on Invalid Pen Prayer by the Chaplain, Rev. J. G. BUTLER, D. D. sions. TheJournalofyesterday's proceedings was read and approved. Also, a bill (H. R. 9626) granting a pension to Hudson M. Fisher-to the Committee on Invalid Pension& RECORDS OF AMERICAN REVOLUTION AND WAR OF 1812. The VICE-PRESIDENT laid before the Senate the amend PETITIONS, ETC. ment of the House of Representatives to the bill (S . 621) to pro Under clause 1 of Rule XXII, the following petitions and vide for the collection, custody, and arrangement of the military papers were laid on the Clerk's desk and referred as foilows: records of the American Revolution and the war of 1812, which By Mr. BUR.ROWS: Resolutions of Mountain Assembly of Bay was, on page 1, line 11, to•strike out "several executive" and View, Mich., requesting the House of Representatives to concur insert "Treasury and Interior;" so as to read: in the Senate amendment closing the World's Fair on Sunday That the military records of the American Revolution and of the war of 1812, now preserved in the Treasury and Interior Departments, be trans to the Select Committee on the Columbian Exposition. fened, etc. By Mr. COBB of Missouri: Petition of Nancy A. Rous, for de pendent mother's pension-to the Committee on Invalid Pen Mr. PROCTOR. I move that the Senate con~ur in the amend· ment of the House of Representatives. sions. By Mr. COBURN: Petition of C. H. Van Womer and others, The motion was agreed to. against loaning money of the people in aid of the construction of ARTICLES OF WAR. the Nicaragua Canal-to the Committee on Interstate and For The VICE-PRESIDENT laid before the Senate the amend· eign Commerce. ment of the House oi Repres·entatives to the bill (S. 2470) to 6552 CONGRESSIONAL ~ECOR . D-SENATE. JULY 22, amend the Articles of War, and for other purposes, which was, ing of the World's Columbian Exposition on Sunday. The sub on page 2, beginning with line 2, tO strike out article 86, in the ject having been disposed of, I ask that the memorial lie on tlie following words: • table. Although it may be a little late for its presentation, it is ART. 80. That a general court-martial shall have the power to punish in time for a second Worlds' Fair. summarily tor contempt of its authQrity such acts as would be punishable The VICE-PRESIDENT. The memorial will lie on the table. summarily by the highest civil court 6f criminal jurisdiction of the State, Mr. DAVIS presented a petition of 244 citizens of Minnesota, Territory, or district in which the coUrt-martial may sit 1t commi.~ted in contempt of its authority: Provided, That the punishment for contempt of praying for the passage of legislation prohibiting the sale, man court by a civilian shall not exceed confinement tor three months, or fine of ufacture, and importation of cigarettes in the United States; 1100 and connnement until paid. which was ordered to lie on the table. Mr. PROCTOR. I move that the Senate concur in the amend He also presented a petition of sundry citizens of Princeton, ment proposed by the House of Representatives. Minn., praying for the closing of the World's Columbian Expo The motion was agreed to. sition on Sunday, and that the sale of intoxicating liquors be prohibited "thereat; which was ordered to lie on the table. EXECUTIVE COMMUNICATIONS. He also presented the memorial of David Akins and other The VICE-PRESIDENT laid before the Senate a communica citizenJiof Skyberg, Minn., remonstrating against the closing of tion from the Secretary of the Interior, transmitting the draft the World's Columbian Exposition on Sunday; which was or- · of an amendment as a substitute for an amendment previously dered to lie on the table. submitted by him to section 2 of the act of October 19, 1888, au He also presented petitions of the Chamber of Commerce and thorizin·g the Secretary of the Interior to accept the surrender common council of the city of' Duluth, Minn., praying for the of and cancel land patents to Indians in certain cases; which, passage of legislation providing for the construction of a bridge with the accompanying paper, was referred to the Committee between Rices Point and Connors Point at the end of Lake Su on Indian Affairs, and ordered to be printed. perior; which were referred to the Committee on Commerce. He also laid before the Senate a communication from the Sec retary of the Treasury, transmitting a supplemental judgment REPORTS OF COMMITTEES. rendered by the Court of Claims in favor of Charles P. Birkett Mr. COCKRELL, from the Committee on Military Affairs, to in the sum of $2,520.04, which requires an appropriation for its whom was referred the bill (H. R. 2932) for the relief of Charles payment; which, with the accompanyingpaper, was referred to T. Garrard, reported it without amendment, and submitted a the Committee on Appropriations, and ordered to be printed. report thereon. · He also, from the same committee, to whom was referred the SHIPMENTS OF RUM TO AFRICA. bill (S. 93) removing the charge of des3rtion against Charles T. The VICE-PRE.SIDENT laid before the Senate a communica Garrard, reported adversely thereon, and the bill was postponed tion from the Chief of the Bureau of Statistics, Treasury De indefinitely. partment, stating, in further reply to the resolution of July 12, He also, from the same committee, to whom was referred the 1892, that the exports of rum of domestic manufacture from the bill (S. 1131) for the relief of AdolphLoschmidt, reported it with United States· to Africa during the month of June, 1892, was84,- an amendment, and submitted a report thereon. 704 gallons, valued au'$98,259; which was referred to the Com Mr. PEFFER, from the Committee on Claims, to whom was mittee on Foreign Relations, and ordered to be printed. referred the bill (H. R. 2803) for the relief of Calvin J. Cowles and George B. Hanna, submitted an adverse report thereon; PETITIONS AND MEMORIALS. which was agreed to, and the bill was postposed indefinitely. The VICE-PRESIDENT presented a resolution of the Build Mr. ALLEN. I am instructed by the Committee on Claims, ing Laborers' International Protective Union of Yonkers, N. to whom was referred the bill (S. 612) for the relief of George Y., in regard to the imprisonment in England of Dr. Thomas Hill, jr., to submit an adverse report thereon. At the sugges Gallagher, an American citizen, praying that steps be taken for tion of the Senator from New Hampshire [Mr. GALLINGER] I his release; which was referred to the Committee on Foreign ask that the bill be·placed on the Calendar. Relations. The VICE-PRESIDENT. The bill will be pla~ed on the Cal Mr. QUAY presented petitions of the First Evangelical Luth endar with the adverse report of the committee. eran Church ofSharps"Qurg, of the FirstBaptistChurch of Port Mr. ALLEN, from the Committee on Claims, to whom was re land, of the St. Peter's Episcopal Church of Phcenixville, of the ferred the bill (S. 2817) for the relief of Prof. Peter Collier, sub Methodist Episcopal Church of Phcenixville, of the Baptist mitted an adve1·se report thereon, which was agreed to; and the Church of Phcenixville, of the Presbyterian Church of Phcenix bill was postponed indefinitely. · ville, of the Central Lutheran Church of Phcenixvllle, of the He also, from the same committee, to whom was referred the St. Jolin's Lutheran Church of Phcenixville, of the German Re bill (S.158) for the relief of Mrs. Eliza E. Hebert, reported it formed Church of Phcenixville, of the St. John's Reformed with amendments, and submitted a report thereon. Church of Phcenixville, and of the United Brethrenof Phcenix Mr. CAREY, from the Committee on Public Buildings and ville, all in the State of Pennsylvania, praying for the clo3ingof Grounds, to whom was referred the bill (S. 3463) to fix the limit the World's Columbian Exposition on Sunday and that the sale of cost of the United States post-office building at Buffalo, N. of intoxicating liquors be prohibited thereat; which were orde red Y., reported it without amendment, and submitted a report to liA on the table. thereon. He also presented a petition of the Beaver County Sabbath Mr. DAVIt>, from the Committee on Pensions, to whom was. School Association of Beaver County, Pa., praying that no ex referred the bill (H. R. 8316) granting a pension to Anna M _Hol position or exhibition, for which appropriations are made by stein, a hospital nurs3 during the war of the rebellion, reported C~ngress, shall b3 opened on Sunday; which was ordered to lie it without amendment, and submitted .a report thereon. on the table. • Mr. TURPIE, from the Committee on Pensions, to whom wa1 He also presented resolutions of the Mahoning Farmers' Al referred the bill (H. R. 7244) granting a pension to Florence liance and Industrial Union, No. 120, of Smicksburg, Pa., pray Esther Williams, the blind daughter of Henry D. Williams, late ing for the passage of the Washburn-Hatch antioption bills; a private in Company F, Sixty-fourth Regiment illinois Volun which were ordered to lie on the table. teers, reported it without amendment, and submitted a report He also presented a memorial of Encampment No. 27, Union thereon. Veteran Legion of Phila1elphia, Pa., remonstrating against the Mr. CULLOM. I present a report from the Commr.. tee on removal of charges of desertion except upon evidence that the Interstate Commerce, and also the testimony taken in connec case is a just one; which was referred to the Committee on Mili tion with the bill which I reported yesterday, being the bill (H. tary Affairs . R. 9350) to promote the safety of employes and travelers upon . He also pre~en ted a petition of the Eighteenth Street Methodist railroads by compelling common carriers engaged in interstate Episcopal Church representing 1,000 citizens of Philadelphia, commerce to equip their cara with automatic couplers and con Pa., and a petition of 600 members of . the Methodist Episcopal tinuous brakes and their locomotives with driving-wheel brakes,· Church of West Pittston, Pa., praying that no appropriation be and for other purpose3. I ask that the report and the testimony made by Congress for the World's Columbian Exposition unless may be printed. it be closad on Sunday; which were ordered to lie on the table. The VICE-PRESIDENT. That order will be made in the ab Mr. McMILLAN presented the petition of J. B. Brown and sence of objection. 242 other firms and business men of Washington,· D. C., praying Mr. JONES of Arkansas from the Committee on Indian Af for the passage of legislation to enable the Baltimore and Ohio fairs, to whom was referred the bill (S. 2601} to amend an act en Railroad Company to acquire lands to be used for increasing the titled "An a~t to grant the right of way to the Pittsburg, Colum company:s facilities for handling freight; which was referred to bus and Fort Smith Railway-Company through the Indian Ter the Committee on the District of Columbia. ritory, and for other purposes, 'reported it with an amendment. Mr. TURPJE. I present the memorial of David Engler and Mr. COCKRELL, from the Committee on Military Affairs, to other citizens of Walton, Ind., remonstrating against the clos- whom was referred the bill (S. 1146) to remove the charge of
., 1892. CONGRESSIONAL REC.OR.D-SENATE. 6553 desertion from the record of Patrick Larkin, submitted an ad Terminal Company through the lands of the naval reservation verse report t'Qereon, which was agreed to, and -the bill was near Pensacola. postponed indefinitely. _. ENROLLED B:rr...LS SIGNED. DISTRICT MEDICAL SOCIETY. The message further announced that the Speaker of the Hous~ had signed the following enrolled bills and joint resolutions; and Mr. GALLINGER. On the 12th day of April last a resolu they were thereupon signed by the Vice-President: tion was SBnt to the Committee on the District of Columbia) ask A bill (H. R. 2370) for the relief of Nathaniel Lang; ing that committee to inquire and report "whether the medical A bill (H. R. 5446) to provide for the care of dependent chil society in said District admits to its membership colored physi dren in the District of Columbia and to create a board of chil cians or physicians who :have been or may be teachers in the dren's guardians; medical school of Howard University, being in all respects other A bill (H. R. 5997) to amend section 2 of an act approvad May wise qualified, or maH:es any distinction in its membership by 14, 1880, being ·" An act for the relief of settlers on public lands;" reason of color or official relation to said university. A bill (H. R. 6091) to amend'' An act to authorize the construe· The committee have investigated the matter committed to tion of a bridge across the Tennessee River at or near Knoxville, them, having taken testimony on both sides. I am instructed to Tenn.," approved August 9, 1888; make a raport and ask that it be printed. A joint resolution (H. Res. 102) requesting the loan of certain The VICE-PRESIDENT. It will be so ordered. articles for the World's Columbian Exposition; MEDALS TO OFFICERS AND CREW OF THE BALTIMORE. A joint resolution (H. Res. 108) extending the time in which Mr. SHERMAN. I am directed by"the Committee on Foreign certain street railroads compelled by act of Congress approved Relations, to whom was referred the joint resolution (H. Res. 80), August 6, 1890, to change their motive powar from horse-power authorizing the acceptance of medals presented to the officers to mechanical power for one yeM'; and . and crew of the United States steamship Baltimore by the King A joint resolution (H. Res. 15§) to authorize and direct the Sec of Sweden, to report it favorably without amendment, and as it retary of State to affix the_great seal of the United States to a is an act of courtesy by a friendly pow~r to officers of the Navy certain document therein shted. of the United States, I ask that tile joint resolution be read for ROCK CREEK SEWERAGE SYSTEM. immediate consideration. Mr. McMILLAN submitted the following resolution; which The joint resolution was read, and, by unanimous consent, the was considered by unanimous consent, and agreed to: Senate, as in Committee of the Whole, proceeded to its consid Resolved, That the Engineer Commissioner of the District of Columbia be, eration. and he is hereb~ instructed to prepare plans, specifications, and estimates The joint resolution was reported to the Senate without amend for converting .t(.()Ck Creek, below the north line of Massachusetts avenue, ment, ordered to a third reading' read the third time, and passed. into a closed sewer and filling in between the banks of the creek; also to prepare an estimate of the value to the Government of the land reclaimed by NICARAGUAN MARITIME CANAL. such work in excess of the probable judgment of condemnation, said report to be made at th:e ~ginning of the next session of Congress. Mr. SHERMAN. I am directed by the Committee on Foreign Relations to report a resolution, and I ask for the action of the PUBLIC FOREST RESERV A'!'IONS. Senate upon it. · Mr. PADDOCK submitted the following resolution; which was The resolution was read, as follows: . referred to the Committee on Printing: Resolved, That the Committee on Foreign Relations is directed to continue ReJJolved That 5,000 copies of the billS. 3225, entitled "A bill to provide for the investigation directed by resolution of the Senate of January 7, 1892, in the establishment, protectio~ and administration of public forest reserva respect to the Maritime Canal Company of Nicaragua, during the recess of tions, and for other purposes, ' together with the written report of the Com the present Congress, with the same powers conferred by said resolution, mitteeon Agriculture and Forestry accompanying the same, be printed and and to report by bill or otherwise on or before the second Monday of the placed in the document room of the Senate for the use of Senators, 1,000 next session of the Senate. copies of which number shall be for distribution by the Committee on Agri culture and Forestry. Mr. COCKRELL. Has the resolution been to the Committee on Contingent Expenses? Does it not properly go to that com RETAIL PRICES AND WAGES. mittee? Mr. CARLISLE. I subrr:it a resolution, and ask that it be Mr. SHERMAN. Early in the present session- read and considered. Mr. PADDOCK. Let the resolution be read again. The resolution was read, a.s follows: Mr. SHERMAN. I think it had better be read again. It is Resolved by the Senate, That 16,000 copies of the table showing "Retail simply to continue the inquiry of the Committee on Foreign prices of commodities in England in .June, 1889, and September, 1891," pre Relations as to the Nicaragua Canal during the recess, under a pared under the direction of a subcommittee of the Committee on Finance, be printed for the use of·the Senate as a supplement to Report No. 986 m~e resolution which was adopted early in the present session, the by said Committee on Finance under the Senate resolution of March 3, 1891. committee concluding not to act upon the subject during the present session. It involves no expense, but it simply gives The VICE-PRESIDENT. Is there objection to the present authority for the committee to meet during the recess and to consideration of the resolution? The Chair hears none, and the make a report at the next session. question is on agreeing to the same. Mr. 1;> ADDOCK. It makes no charge on the contingent fund? Mr. SHERMAN. I ask the indulgence of the Senate to have Mr. SHERMAN. It makes no charge on the contingent fund. the resolution read again. I did not hear it, but I have no doubt The VICE-PRESIDENT. Is there objection to the pres::mt it is all right. consideration of the resolution? Mr. CARLISLE. Iwillstate to the Senator what 1t provides Mr. TURPIE. I think it -would be better to consider the reso- for, if that will answer as well. The subcommittee made in lution at a lator day in the session. - quiry as to the retail prices in England of a large number of ar· The VICE-PRESIDENT. Does the Senator from Indiana ob- ticles, something over 200 I believe, on the lst of June, 1889, ject to its present consideration? and on the 1st of September, 1891. The r eturns were made to Mr. TURPIE. Yes, sir. the committee, and are printsd in the large volume which ac- The VICE-PRESIDENT. Objection is made. companies the report. • Mr. SHERMAN. Does the Senator from Indiana object? The committee also ascertained the rates of wages in England The VICE-PRESIDENT. He does. in a large number of occupations during that time. The St9.tis Mr. SHERMAN. Then the resolution goes on the Calendar. tician in his report to the sut committee, which is printed as an appendix to the committee's report, alludes to both of these tables, The VICE-PRESIDENT. The resolution will be pla~ed on b :1t omits to publish the table showing the retail prices, publish the Calendar. ing, however, the table which shows the rates of wages. There- . :rvffiSSAGE FROM THE HOUSE. port as to England is not complete without the publication as a A message from the House of Representatives, by Mr. T. 0. supplement-to it of the table showing the retail prices as well as TOWLES, its Chief Clerk, announced that the House had dis the table showing the rates of wages. agreed to the amendments of the Senate to the bill (H. R. 9172) I looked over thi3 report in the Statistician's office when it to incorporate the Washington and Great Falls Railway Com was in manuscript, or typewritten rather, and thought at that pany, agreed to the conferenc3 asked by the Senate on the dis time the table showing the retail prices accompanied it, because agreeing votes of the two Houses thereon, and had appointed the sheets were loose and each table was on a separate sh-= et of Mr. HEARD, Mr. COBB of Alabama, and Mr. POST managers at paper, and when I came to the tables in my examination, of the conference on the part of the House. course they were laid. to one side and not carefully examined. The message also announced that the House had passed the But on coming to examine· the report in print I find that that following bills; in which it requested the concurrenoe of the table is omitted, and I simply ask the Senate to order the same Senate: number of that table printed as of the report itself, 16,000 copies. A bill (H. R. 6073) to authorize the Postmaster-General to pro· Mr. SHERMAN. I now understand it. I am not a member vide mail service, and for other purposes; and .of the subcommittee which reported these papers. I have no A oill (H. R. 9023) to grant the right of way to the Pensacola doubt_what the Senator from Kentucky says-is correct, and that 6554 CONGRESSIONAL RECORD-SENATE. JuiY. 22,
the table ought to be published; but as the Senator from Iowa tal. That is not the true statement of the situation. The work [Mr. ALLISON] and the Senator from Rhode Island [Mr. AL ing people of to-day in this country and all other countries have DRICH] are not in their seats, I ask the Senatorfrom Kentucky to no sort of objection to the accumulation of property by individ let the resolution be passed over until they come in. I have no uals throug}l their own labor and the exertion of their own per dbubt it will be satisfactory as soon as they come in. sonal efforts. They have no sort of jealousy against persons who Mr. MANDERSON. I think the resolution should be referred at·e in the enjoyment of the comforts of this life~ What they to the Committee on Printing. object to is whatthey regard as a usurpation upon the part of em Mr, CARLISLE. Perhaps it is a matter of no importance, ployers, a usurpation of the rights o.f the workmen; and this that btLt I call the attention oi the chairman of the Committee on we now call" labor trouble 11 is simply a resistance to that op Printing to the fact that the report as printed purports to be pression. It is a contest between two classes <>f citizens, there made in response to Senate resolution of March 3, 1892, whereas fore, the employer and th~ employe-one made up of a very few in fact it is in response to Senate resolution passed Mar.ch 3, 1891. of the citizens, comparatively, and the·other composed of .a vast Mr. MANDERSON. I think, beyond question, that the table multitude of the toiling people. which is referred to should be printed as a part of the report. Under the present state of the law the employer has the right, It seems to be a part of the document. The only embarrassment and he exercises the right-perhaps I ought to use the word there is about the passage of the resolution is the statute, which privilege-he has the privilege, and he exercises the privilege of requires that in order to prim matter by either House it must not only determining the rate and amount -of wages to be paid to be within the limit of cost of $500. I ask the Senator from Ken the employe, but he has and enjoys the privilege of dictating to tucky whether he has made the necessary inquiry to find if this the employe what rate and amount of wages he shall receive and could be added to the number of 16,000 copies within the limit accept. 'I'his seems to be an erroneous statement of the rela of'$500? tion, simply because we have boJen accustomed to looking at it Mr. CARLISLE. The Senate has ordered 16,000 copies of the from a different standpoint. It is generally understood and report to be printed. I am not apprised as to the cost of print agreed that the employer has a ri
. [Boston Advertiser (Republican).] power of the State in keeping their old men out and in bringing 1n calling out the entire militia of Pennsylvania, eight thousand strong, new men in; an army surrounds the mill and the proprietors are to enforce law and order at Homestead, Governor Pattison has done the right thing at the right time. It is the right thing, because obedience to law protected, while the workmen are sent to jail. is a fundamental necessity. Having called attention to that fact, representing and ~speak [St. Paul Pioneer Press (Republican).] ing in the name of at least two of the largest organizations of Itis possible to claim for the men the right to feel resentment and to try working men and women in the world, I ask that the Judiciary to force the company to terms by every legltima.te means within thexrpower. Committee give this particularpoint most careful consideration, But when it comes to talking about their "right" to keep away nonunion men by violence and outrage, to maintain such a state of siege about the because there are but three peaceful ways out of this trouble; orks that they can not be operated, and to do to death any guards not of and to suggest this is not trouble and that still greater troubles t eir own number who may be set to work to defend property from attack, are not in store for us, is to spaak in defiance of our own personal W~mounts to rank anarchy, of which even the most dt>spicable and unprin cipled politician ought to be thoroughly ashamed. opinions. [NewYork Sun (Democratic).] We are face to face with one of the gravest phases of this great Invariably within our observation, the rioting and destruction have been problem. As I said, there are but three peaceful ways-out of it: done by the alien, the lawless, and the criminal, while American labol' was First, for the Government to keep its hands off both. parties to ~taying at home and attending to its own business. And if Mr. Carnegie the contract. As it is now, there is no contractexceptupon the qoubles up any intruders with his electricity, or douses them with his hose, no sensible man will condemn him for the act, or vilify the independence and part of one of thecont~ctors,and that is nocontractat all. The resolution that enables him to protect his property and his rights. first way out of the difficulty is for the Government' keep its [St. Louis Globe-Democrat (Republican), July 9.] hands off these people, both employer and employe, let them It has not yet become a crime in the United States for a man to be a. cap settle the matter between themselves, and they will d0 it, and italist, and to invest his money in an enterprise that requires the assistance do it without resort to arms. I know that that is not a- palatable of a. large number of hired hands. Neither has the point- yet been reached way of settling the matter. Then I have two others to suggest, where public opinion is ready to indorse the revolutionary idea. that prop erty is held subject to the "correlative rights" of men_who are enabled to and there are but three, I believe. make a. living by the chances which it affords them to sell their labor at a Another one is that the Government shall establish and regu profitable price. late the rates of wages fo1· employes, and see that the ~eceive Mr. PEFFER. We have never had this matter presented to them justly. That will doubtless be regarded as " t nstitu the public mind so strongly as in the recent occurren-ces at Home tional, revolutLonary, and void." stead, in Pennsylvania. There the power of the State is arrayed There is still another, that the Government do with those under direct command and control of the governor of the great great institutions the same as it does with the private lands of Commonwealth of Pennsylvania, who, as he tells the people, has the people when it needs them for public uses, take possession in the treasury over $8,000,000 in cash and somewhere in the of them, condemn them in the public interest, pay for them .. and neighborhood of five million loyal people to support him, and conduct them as public in3titutions. That is the third way, and that he will maintain with thewholepoweroftheStatethe right doubtless Senators who ara list:ming to me will agree among_ of the managers and owners of the Homestead mills to conduct themselves that this more ravolutionary than eith3r one of the them in their own manner and jn their own way; and we know, other two. ' Mr. President, that the ultimatum which was given to the work I submit, if we are to b3 a free people, if the workman is worthy men by the managers of the mill several weeks ago was of their of his hire, and if it be true that all men are created equal and ownmakingandit was of their own stating. "We submit this to endowed with the inalienable rights to life, liberty, and the pur our men; they can accept it or they can reject it, just as they suit of happiness, there is no way other than these to. arrange please." Ip order to show the spirit in which that was done, I this dispute between the employer and the employ~, .except ask that the following paragraph purporting to be an interview through the bloody gates of war, and neither you nor I, Mr. with the manager of the Homestead works, or with one of,them, President, want anything of that kind. a Mr. Lovejoy, may be read from the desk. Mr. MITCHELL. What does the Senator himselt~y - as to The VICE-PRESIDENT. The paper will be read. the power of Congre:: s to do what he suggests by h~:iast two The Secretary read as follows: propositions? 1 These informations were entered in my capacity as a. private citizen, and Mr. PEFFER. First, I submit one proposition. Tak.lr} your not as secretary of the Carnegie Steel Company. There are good cases hands off and let us settle this matter alone, and we will do it against 1,000 of these men, and from. now on twelve to fifteen informations peacefully. You are now interfering, as we claim. I say to will be made every day. The idea is to make them just as fast as the au thorities can handle them. We have evidence against 1,000 men, and we pro Senators boldly that the Government is interfering with the rights pose to push these cases. The laws of Pennsylvania are very broad on this of the people. The right of the employe to have a voice in the subject, and persons who were on the premises at the time of the shooting making of his own contract is as sacred, Senators, as the :right of are liable no~ only as accessories, but as principals. Our preparations for these prosecutions bep:an on June 29, when the negotiatfons between the the employer to dictate, and if possible, to a greater degree. company and the association ceased. Seeing the t-urn that matters were Mr. GALLINGER. Mr. Presldent- taking, and receiving intimations and threats of the things the strikers pro Tlle VICE-PRESIDENT. DoestheSenatorfrom Kansas-yield posed doing, we began our precautionary measures. We did not take these precautions because we expected trouble, but be to the Senator from New Hampshire? cause we wanted to be prepared if any occurred. The names of the leaders Mr. PEFFER. Yes, sir. who were driving the _strike into the groove it has taken were procured and Me. GALLINGER. The Senator's first inquiry was in refer a.rrangements.were made to secure evidence in certain emergenciP.s. There is the strongest foundation for the statement that we had detectives with ence to the present state of the law. I should like to ask the cameras in the mill at the time of the shooting. Our purpose in making Senator what law he refers to, whether it is the law of the Dis these arrests at this time is not to break the strike by taking away the lead trict of Columbia, or of the State of Pennsylvania, or of the State ers, nor is it to compel the men to go back to work under threat of arrest. This thing is not a. blutr. We mean to go to the end. The evidence in our of New Hampshire, or of the State of Kansas;· and if it is outside hands will be placed in the hands of the district attorney for his use. We of the District of Columbia or the Territories, has Congress any have conferred with him on the matter. After an information is made we right to inquire into a law enacted by a State Legislature? could not withdraw it or let it fall. That would be compounding a felony. It would be contempt of court for the witnesses not to appear. Mr. PEFFER. I am coming to that in a moment. As I said The best cases will be brought first. We shall push them to trial just as in the beginning, I should not occupy much time if I were not rapidly as they are brought. Should we come across the case of a man who interrunted. was not engaged in the shooting and who bad no hand in the mischief what ever we might make no information, provided the man showed his repen I refer to the laws of the land, and as the lawa are now con tance for participating as much as he did, and by coming to us for his old strued the employer may say to the employe, "I will give you position. But the law is very broad, and if a man was only present and did so much and no more," and the employe is bound to take it or, not even lift his finger, he would be considered implicated as much as any one, for the reason that his presence iJD.plied his consent and moral influ if need be, to starve. That is the state of the law to-day, as I un ence in favor of what was going on. derstand it, not only in Pennsylvania, but in New Hampshire, in •We expect to bring nonunion men in this week. The nonunion men will Massachusetts, in North Carolina, South Carolina, and every only be sufilcient in numbers to fill the places of the men who are engaged 1n this thing, and whom we will not take back. The men against whom we where within the Union. That is the reason I have quoted these hold evidence are scattered through the milL There are some in every de extracts. That is the law. I insist that so far as it curtails the partment. Skilled and unskilled labor are represented. right of the employeto make his own contract the law is outside It was by design that the name of Hugh O'Donnell was placed in one in· formation and second in another. We regard him as the leader. He is, or of and in contravention of and repugnant to the fundamental was, president of the advisory committee. There are plenty of steel workers doctrine of the Constitution of the United States, built upon the in other mills who would be glad to get work 1n Homestead mills by reason Declaration of Independence, that all men-not only a few men, of the good positions to be had there. We do not want to embarrass other firms by drawing their men away from them, but, o! course, if they are will· but all men-are created equal. ing to come, we shall hire them if they are needed. We will not bring men Mr. SANDERS. Mr. President, I should like to ask theSe~ from England. We never have imported and never will because it is not ator a question, if he will yield. necessary. There are plenty of men right here who want work. The VICE-PRESIDENT. Does the Senator frum Kansas yield Mr. PEFFER. It is to this point, Mr. President, that I desire to the Senator from Montana? to call the attention of the members of theJudiciaryCommittee Mr. PEFFER. Yes, sir; but I do notwant to lose track of the and of the Senate and the country, the authority which is granted question of the Senator from Oregon [Mr. J\1ITCHELL]. I will to the empioyers and the absolutely defenseless condition in which yield to th& Senator from Montana. the workmen are placed. The employers are protected by the Mr. SANDERS. When the Senator speaks of the right of an 6556 CONGRESSIONAL RECORD-. SENATE. JULY 22, .
employe to make his contract, does he include in that the right The VICE-PRESIDENT. The motion of the Senator from to make the contract independent of the proposition whether he Colorado to refer takes precedence. can find an individual to contract with him; whether the Sena Mr. WOLCOTT. I insist on my original motion. tor insists upon the right of the employe to make the contract The VICE-PRESIDENT. The question is qn the motion of on both.. sides or not? That is the question which I wish to have the Senator from Colorado to refer the resolution to the Com answered. . mittee on Education and Labor. Mr PEFFER. No, Mr. President, I do not. . I mean simply The motion was agreed to. to say that the employe has the same rights, no :nora and no TEMPORARY MAIL SERVICE. less, that the employer has, and that the two, ~ommg togeth~r The VICE-PRESIDENT laid before the Senate the bill (H. upon equal terms, can .agree o: not ag~·ee, as It may best su~t them· but as the situatiOn now IS and as the law now Is, there IS R. 6073) to authorize the Postmaster-General to provide mail but o~e party to the contract protected, and we have nev.er had service, and for other purposes; which was read twice by its so plain and so forcible an example as we have to-day, with ten title. thousand troops to protect one party to a contract in the State Mr. SAWYER. I ask unanimous consent of the Senate for a of Pennsylvania. .. moment to proceed to the consideration of that bill. I am author Now 1 come to the question of my amiable friend rrom Ore ized by the Committee on Post-Offices and Post-Roads to make gQn [Mr: MITCHELL] as to what authority Congress has or J?lay this request. have in this matter. I belie':'e that the Congre~s of the "V~nted The VICE-PRESIDENT. The bill will be read for informa States has the right constitutiOnally to protect Its own Citizens tion. anywhere in the country. I believe furthermore .that it h:as a The Chief Clerk read the bill as follows: Be it enacted, etc., That after providing by general advertisement for the right to determine for itself when and where a private busmess transportation or the mails in any State or Territory as authorized by law, has gone to the extent of its usefulness in that capacity and when the Postmaster-General may secure any mail service that may become nec it is timeJor the Government to interfere. essary before the next general advertieement for said State or Territory by posting notices, for a period of not less than ten days in the post-omces at There is a time coming, as I believe, when for a.ll purposes, ex the termini of any route to be let, and upon a bulletin board in the Post ceptingJ.ocal State government, the loc~ autonom_v: of the Stat~s, Omce Department, inviting proposals, in such form and with such guaranty State lines as we have been in the habit of regardmg them, will as may be prescribed by the Postmaster-General, for the performance of the proposed service. The contract for such service shall be made to run to the vanish. ' . · t th I end of the contract term under the general advertisement, shall be ma.de Mr P. ·esident, I have talked longer upon thiS porn an ex- with the lowest bidder whose proposal is in due form, and who, under the pected to do, because Senators called myatte!ltion tootherp.o~ts. law, is eligible as a bidder for such postal service. Temporary service ren I wish conclude by-impressing upon the mmds of the Judicia-:y dered necessary by reason of the failure of any bidder or contractor to to perform the service awarded him under this act may be employed by the Committee the particular :point I make, because, as Se~ator:s will .Postmaster-General without advertisement, at a rate which he may deem learn the older this question grows the more clearly It Will ap· reasonable, at the expense of any such failing bidder or contractor. SEc. 2. That all acts or parts of acts inconsistent with the provisions of pear.' There is much in what I say. There are thousands, many this act are hereby repealed. thousands,.of small assemblies of people in different p~rts of the country discussing these very things and upon the _lmes I am Mr. GORMAN. Is the Senate considering that bill at this talking, that this is a government of the people, or It ought to time? Mr. SAWYER. I make that request. be·a go~ernment fo~ the .people and by the people. . . Thel1Jin connectiOn With that, I expect to move m a mmute The VICE-PRESIDENT. . The Senator from Wisconsin has or two that the resolution be adopted by the Senate and notre made · the request for unanimous consent that the bill be con ferred to the committee, in order that during the recass of Con sidered at the present time. gress thamembers of the committee as individual men, lawyers, Mr. GORMAN. I did not hear the reading of the bill. What may be.Sudying this question for themselves, so that when the does it provide for? . next session begins they may be ready to compare notes and to Mr. SAWYER. It is a bill allowing the Postmaster General, comP.ar.a.their views. In addition to that, I shall suggest that where there are failing bidders or contractors, to temporarily it will be--very profitable to that committee if, when the Senate provide for the service· after posting notices in the Post-Office gets ready to take up the other resolution which I had the honor Department and in the various post-offices. There is a good deal to introduce a few days ago, asking for the appoin.tment of a spa of difficulty on account of failing bidders to supply the sarvice cial committee in order to collect facts upon this matter, that for the two months, February a!!d Maroh, before the new con resolution also may be adopted. tracts take effect. ·I have the report of the committee here, and I will take this occasion to express to the Senate what my own perhaps that had better ba read. individual views as to the scope of that committea are. It is Mr. GORMAN. I think the report had b3tter be read. simply to investigate the whole field, not merely Pinkertonism. The VICE-PRESIDENT. The report will be read. If The statement made in the Calendar o~ the substance of .the Me. CALL. this is going to occupy time, I must object. resolution is not broad enough. The ob)ect of the resolutwn, Mr. SAWYER. I do not think it will take any time. Mr. GORMA~. Is the report long? as stated in its several paragraph:s, is ~o inves~igate the wh?le Mr. SAWYER. No; the report is not a long one. subject involved and con:r;tected with Pmkertomsm, the q':est~on of labor in all of its relatiOns, to see what form of organiZatiOn Mr. CALL. I did not suppose there would be any discussion workingmen and workingwomen have in order to·protect their about this matter. rights, what kind and what sort of organization employers have, Mr. SAWYER. It is so near the end of the session that if the bill is not acted upon now there will be no opportunity to syndicates and all that sort o~ thi~g, so that we ~a:y have t~e pass it. I think it will only take a minute. whole subject before us; and It be.mg so ~xtended I~ ~ts field, Its scope being so great, it wo?ld be Impossible, eve~ If I.t were de Mr. GORMAN. Has the report been made by the Post-Office· sirable in the present exCited state of the pubhc mmd, to un Comm.ittee? dertake to do the work hurriedly or a considerabh part of jt Mr. SAWYER. Certainly. The committee are a unit upon it. immediately. . . The VICE-PRESIDENT. Is there objection to the present Necessarily the time must be postponed until the later fall consideration of the bill? months. In the mean time the outlines can be laid and the pre There being no objection, the Senate, as in Committee of the liminary work can be done; arrangements can be J:?ade so that Whole, proceeded to consider the bill. at least during the month of November the qomnnttee may be Mr. GORMAN. On the statement of the Senator from Wis able to gather together all necessary facts, all pertinent facts, consin that the bill has been ctmsidered and unanimousl.v re and with them may be able to make a report to Congress early port:!d by the Committee on Post-Offices and Post-Roads, I shall during the next session. not ask for the reading of tho report. I regret exceedingly, Mr. President, that I have O:!cupied so Mr. CULLOM. I think w~ had better let the bill pass. I be much time. I should not have done it had there not been so lieve it is all right. many questions put to me. The bill was reported to the Sen:tte without amendment, or The VICE-PRESIDENT. The question is on agreeing to the dered to a third r eading, read the third time, and passed. resolution. ARBITRATION LABOR COMMISSION. Mr. WOLCOTT. I move that the resolution be referred to Mr. CALL. I ask the Senate to take up the resolution intro the Committee on Education and Labor. duced by the Senator from Indiana [Mr. VOORHEES]. The VICE-PRESIDENT. The question is on the motion of The VICE-PRESIDENT. The Chair lays before the Senate the Senator from Colorado, that the resolution be referred to the the resolution referred to by the Senator from Florida the title Committee on Education and Labor. of which wjll be reported. Mr. PEFFER. I desire to interpose another motion; and The CHIEF CLERK. A resolution, by Mr. VOORHEES, relative ± while it may not be in order, still in view of the fact that I gave to the Eettlement bv arbitration of all disagreements and con notice that I would prefer to move the adoption of the resolution trove1·sies between employed laborers and the owners or capital by the Senate, I ask that that motion may be ~ put. who employ them. 1892. CONGRESSIONAL RECORD-SENATE. 6557
The VICE-PRESIDENT. The resolution is before the Sen tion of property, as well as to the continuance of peaceful rela ate. The Senator from Florida is recognized. tions amongst our people, is it not proper that some method Mr. CALL. Mr. President, I will consider inconnection with sh.ould be provided by which peaoo and contentment shall be the resolution introduced by the Senator from Indiana [Mr. r estored to the people? VOORHEES], which has been read, the resolution which I intro Who is it that under our form of institutions has the power to duced, and which now lies upon the table, in relation to the same levy an army, to provide a navy, to organize a vessel with the subject. munitions of war; and where is the authority to be found for In the last period of the decade which closed in 1890 an author either a State or a citizen of the United States to make a hos of an adventurous character undertook in what then seemed to tile array of armed men, organized as" troops," for the purpose be the wildest vagaries of fancy to portray the growing absolut of asserting his rights, whether it be a pr,pper conception or a ism of power and depicted in startling colors (in a book, which wrongful one of his personal rights and interests? excited attention at the time, under the name of "Cresar's Col Mr. President, we have some light upon that subject, and it is umn") the separation of the people in this country into classes somewhat singular that, instead of assuming that these work with wi-iely d1fferent and hostile sentiments and antagonisms to men, these citizens of the United States, in resisting "troops," a each other. hostile army, a fleet of ships of war, are to be suppressed by .a It seemed to the greater public opinion at that time that th ~ se military force under the authority of the State, without even a. reoresentations were only visions of a distempered mind, that judicial inquiry as to th3 guilt of the persons who levied this they were the wildest imaginings of a disordered fancy; but we standing army and marched in hostile array to attack them. stand to-day, Mr. President, in the presence of the reality of There is authority for the opinion that a man has a right tore some of those representations-a reality of the most startling sist a standing army under the command of anindividualmarch description. We are to-day ra:Juired to consider a condition of ing through the country and forcibly exercising pdwer and au things in which a vast array of the citizens of this country has thority. been made in organizations which are in direct and absolute and The first trespass under the Constitution and the laws of this forcible opposition to the interests of others. country is that of the man who levies a military force; we shall We are required to deal with this separation of classes. Upon not be upon the road to peace and contentment a.nd to the pro the one side is a great power of wealth, a great power of incor tection of property until, with the strong arm of the law, we porated institutions, and upon the other, the great mass of the shall tirst assert the majesty and supremacy of our institutions people. These institutions are a part of our civilization, inno over those who first rewrt to military force for the purpose of cent, useful, and beneficient in themselves, but when carried to the protection of personal right or the right of proparty. an extreme, assuming all the powers and functions of govern In the year 1807, in the circuit court of the United States for ment and proceeding with the same instrumentalities. the district of Virginia, the grand inquest of the United States What shall be done in view of these facts? Mr. Jefferson in of America, with Chief Justice Marshall presiding, found the fol his scheme ofgovernment, recognizingthe tendency of all power, lowing indictment: whether corporate or oth~rwise, towards absolutism, toward a The grand inquest of the Unite:l States of America, for the Virginia dis· · relief of itself from all the restraints of law or superior power, trict, upon their oath do present that Aaron Burr, late of the city of New York and State of New York, attorney at law, being an inhabitant of and towards the assertion of absolute authority in itself, in his great residing within th9 United States, and under the protection of the laws of and capacious thought realized that in the past history of the the United States, and owing allegiance and fidelity to the same United world ambitious men had seized upon the organized powers of States, not having the fear of God before his eyes, nor weighing the duty of his said allegiance, but being moved and seduced by the instigation of the government as the means of effecting their individual purposes devil, wickedly defying and intending the peace and tranquillity of the said or promoting their personal ambitions. He did not foresee that United States to disturb and to stir, move, and excit-e insurrection, rebellion, there was a force growing up under our social and economic and war against the said United States on the lOth day of December, in the year or Christ, 1806, at a certain place called and known by the name of Blan :forms outside of the powers of the Government, greater than it nerhasset's Island, in the county of ·wood and district of Virginia aforesaid, could exert, a power greater in revenue, greater in its command and within the jurisdiction of this court, with force and arms, unlawfully, of organized men. falsely,maliciously, and traitorously,did compass, imagine and intend to raise and levywar, insurrection and rebellion against the said United States; and When he denied in his scheme of government anything but in order to fulfill and bring to effect the said traitorous compassings , imagina the absolutely necessary powera for the praservation of law a!ld tions, and intentions of him the said Aaron Burr, he the said Aaron Burr order, when he carefully divided the jurisdictions of the differ afterwards, to wit: On the said lOth day of December, in the year 1806, afore said, at the said island, called Blannerhasset's Island as aforesaid, in the ent powers of sovereign authorities and put an iron-bound lim county of Wood, aforesaid, in the district of Virginia, aforesaid, an1 within itation upon the exercise of organic power by the Government, the jurisdiction of this court, with a great multitude of persons whose names he did not foresee that the time would come when private cor at present are unknown to the grand inquest aforesaid, to a great number, to wit: To the number of thirty persons and upwards, armed and arrayed in a. porations and aggregated wealth would control a million of stal warlike manner, that is to say, with guns, swords and dirks, and other war wart, capable, and skillful men, or at least would have them de like weapons, as well offensive as defensive, being then and there unlawfully, pendent upon them for their daily bread, and four millions of maliciously, and traitorously assembled and gathered together, did falsely and traitorously assemble and join themselves together against the sai
them with munitions of war without the sanction or authority We may be disposed to deal with them with the strong hand of the State or of the United States, have no mention made of of despotic power, and say to. these people: "It matters not what them and no indictment or prosecution of them? It is not be you think; it is true this is a Government deriving its just cause there is no warrant or precedent in the construction of our powers from the consent of the governed, but the Government law of treason by the highest tribunal known to our laws. is independent of your public opinion, and we will suppress with I have just read what at least presents a decision of Chief the strong hand of military power your resistance to organized r Justice Marshall, which is worthy of the most careful consider military power when broug ht against you; when this army of ation. The Constitution of the United States uses this language: the Pinkerton's detectives shall be employed by private instru Treason against the United States shall consist only in levying war against mentalities to redress what they conceive to b 3 their grievances them, or in adhering to theh· enemies, giving them aid and comfort. you shall submit; we will maintain a standing army which will What is levying war? We have already had the definition of it enforce your submission." But if we pursue that policy we shall by Judge Marshall upon the basis of the English authorities. only aggravate this discontent, we shall only increase this stub It is the gathering together of men, even without arms, for the born spirit of resistance. purpose of remedying their own grievances forcibly. It must Ours is not a Government where the people are bound by tra be under our Constitution an organization of men, if not with dition to submit to the wrongful exercise of power, or to submit arms in their hands, with arms at hand, or in process of obtain to anything but their own convictions of right. We have du ing them for the purpose of subverting the authority of the Gov cated them into the belief that government is a thing that de ernment, not permanently, not altogether, but for that particular rives its just powers from the consent of the people themselves. purpose, remedying their grievance, whatever it may be. We have educated them into a belief that our institutions are The Constitution goes further. It gives us some idea of what formed upon the voluntary and the intellig-ent enforcement of is meant by the levying of war. It says that" Congress shall laws by the public opinion of the masses of the people. have power to raise and support armies, to provide and maintain o when we find a vast portion of these people arrayed in hos a navy," but "no State shall without the consent of Congress tile antagonism to particular acts and particular policie3, it be * * * keep troops or ships of war in time of peace." It thus hooves us, instead of enforcing by violence policies contrary to vests in the United States the sovereign power and the exclusive their sentiments, to provide some method by which wemaybring power of keeping troops. No State shall keep troops without them into harmony with the public policies and the laws into the consent of Congress. · harmony with thos3 from whom they dissent, and to agree upon Can that be construed to mean that an individual may assert some basis of compromise for legislative action. this right? Can an individual maintain, organize, or keep a Mr. Jefferson formulated his theories of government, and gave troop, that is, a company armed and prepared for hostile action, rules of interpretation of the powers conferred by the Constitu without the consent of Congress, when a State may not do it? tion. These, however, were not the caus3s of that great attach Can he do itwithoutdisturbingand usurpingtheexclusivepower ment to his name and memory which exists throughout the of the United States? And is not the mere act of raising "a wodd, but it was his sympathy with popular right, with free troop" by an individual for the traitorous purpose of asserting government, his profound conviction that all civil power should his own power and what he conceives to be his own rights be so created and so exerci ed that the interest and happiness whether it be his rightsornot-disturbingthe exclusive author and comfort and abundance of the great mass of people should ity vested in the United StateR, and denied even to a State? be secured and provided for; itwasthissympathywithhumanity So careful, Mr. President, is our scheme of government to pr.r that gave, and still gives, to his name its pre:.tige, and draws to vent the occurrence of such scenes as have taken place at Home it the affections of the oppressed people of the world. stead, with the result of the death of our people by violence, by But Mr. JeffersonJ when he established the theory of inter war, by organized military operations aga.inst them, that it denies pretation that power should be denied to the Government, State totheGovernmentofthe United States the power to enter with an or Federal, except in absolutely neces5ary cases, that power armed force into the territory of a State without the consent of should reside in the people, to be given by them under such re the Legislature of that State or the written request of its executive strictions as would make its exercise safe, as would deny the when its Legislature was not in session, and relies exclusively tendency to develop into absolute authority, as would enable upon these very working people, assembled at Homestead to them to withdraw it when necessary-when h e established the execute the law as the militia upon the command of the governor rule that its interpretation should be limited and r estricted by of the State, and requires that all the civil and criminal process an iron band which should inclose it, he was the first to find that of the courts of the United States should be dependent upon the spirit of fraedom and perpetuity of free institutions demanded the fidelity of the people of the different States and their force at times that these rules of interpretation should be transgressed. as a militia and not as an army, as "troops,"or as" ships of war." H e met in the very first years of his administration the neces Can there be· any doubt that this Constitution was framed for the sity of acquiring the vast territory of Louisiana and the regions very purpo e of forbidding the possibility of the organization and · connect3d with it, and, acknowledging that the Constitution and use of armed, disciplined, and trained men to protect them in the rules of interpretation which he maintained absolutely forbade employment of individuals, in their rights, and their supposed or him irom having any authority to do that which he knew was real grievances? fo r the interest of the Republic, he assumed the authority, de So, Mr. President, we have to-day a great and powerful in pending, as he said, upon th ... future action of Congress and the strumentality of power in incorporate bodies, which may be people to justify it, of acquiring that vast territory which, more beneficent under proper limitations for the promotion of indus than any other, has bean the gem of statesmanship in our his trial economies, but which claims to have the right of main tory, and has contributed more to the praser vation and the per taining a standing army by calling it the particular name of petuity of free institutions than any other cause. Pinkerton's detectives to divest it of all the characteristics of So, now, Mr. President, we are cGnfronted to-day with the ne military power and force and to use it to subvert the authority ce!:sity of action which, whatever may b3 the limitations of our of the United States in that respect in which the Constitution Federal Constitution, may be taken without interference with declares it shall be exclusive, namely, the right to maintain and any of its proper rules of interpretation. W e find the Constitu support a standing army, a ship of war, or troops. tion of the United States prohibits the Federal Government from It seems to me entirely clear that the duty of the authorities assvrting, with military power, the jurisdiction of this Govern of this country is to have this law of treason carefully investi ment within the limit3 of a State, except by the con ent of the gated and applied to this case of Gen. Frick and the Pinkerton L egblature of the State. But we do not find anywhere that the soldiers under the decision of Chief Justice Marshall, viz, the jurisdiction and power of the United State3 in respect to treason indictment and trial of these men who have imperiled the safety may not be enforced through the civil and judicial tr ibunals of of property in this country, and, what is far more important, the the United States within the States, 1·elying upon the power of peace, order, and good feeling of it3 different classes; the men the States and the militia of the States to enforce the mandates who have enraged a vast multitude of our people who are hon of the courts according to the scheme of the Constitution. estly under the belief that their organizations are ln.wful and I wish to ask, Mr. President, assuming Me. Chief Justice right and necessary for their protection. Marshall to be right and the English authorities to b3 right in Mr. President, this trouble can not be suppressed by violence. the declaration they have made that if a man levy war by rais "The people of this country recogni~e the fact that under our ing troops of armed men to redress his grievances without the forms of social and political economy the wealth of the country authority of the king or the government, if that be a disturbance is aggregated to an improper extent in ownership of a very of the lawful authority of the government, I ask how can the small number of our people, and that its political power is con opinion be maintained that it is not a disturbance and a resist trolled largely by this small element of ourpopulation; that the ance of the lawful autho. ity of the United States under its Con great mass of the people are dependent upon their will and stitution which says that no State shall keep troops or ships of pleasure for the employment which is necessary to sustain life war and that the United Statvs alone may provide standing for themselves and their families. It is a fact which can not be armies and a navy? disguised that this is the prevailing sentiment and belief, and How is it that it is not trea on to-day for a corporation or in that widespread discontent exists for that reason. dividuals to resist the authority of the G:>vernment and to dis- 1892. CONGRESSIONAL RECORD-SENATE. 6559
pla.ce it by the organization of a troop or a standing army or Constitution, having received that enlarged and liberal construc maintaining a ship of war for the purpose of protecting the per tion, may well be applied, so far as reason will permit lt to be sonal rights or rights of property of a person or for the purpo~e extended, to the inclusion of this class of difficulties. of redressing grievances? Mr. Cleveland's message, which we printed in the resolution If there be anything wanting in this definition of treason it is of the Senator from Indiana, properly refers to the workina tQ be found hi the purpose. It may be said that the purpose in people as a people whose rights are to be r.espected, who are not this case was simply to redress one's grievances; that it was to to be the subjects of force, who are not to be considered as wedded protect rights of property. This is a matter of fact for a jury to a particular class or to a life of labor, but to whom the oppor to ascertain, says Mr. Chief Justice Marshall, upon the facts ot tunities of bettering their condition must be extended upon the the case. most enlarged basis. It is the province of the jury to ascertain whether the purpose That opinion, Mr. President, was no more than was previously was for one thing or another. But admit that it was the pur rendered by the great Hepublican President of the United States, pose to redress one's grievances, to protect one's property. That A~t:aham Lincoln. W~en we consider that we are applying a lS within the terms of the law. It is within the terms of the de- m1htary force, a despot1c power, to suppress the grievances and 9isions of the English courts to raise an army or an armed force complaints of these people and their associations, and when we . in the King's peace to protect one's rights is treason-is "levy regard them as the sole persons committing error and wrong ing war against the Government." The law permits a man in and violations of law, and leave their employers to use the power the possession of his property to use force, even to the extent of of the courts in their indictment for murders brought on by the l,rilling, to protect that possession. But it does not permit him employment of hostile mercenaries; when we leave them in their to go outside and organize a permanent force, a standing army, poverty, sustained alone by their association, to bear the whole " a troop " or " a ship of war," to equip it, to garrison it, to arm brunt of the law for offenses to which they have been goaded it and prepare for instant and effective use. That is the public and provoked by the violation of the law itself by persons in su prerogative and function. That is the people's right. perior authority, in my judgment we are committing a wrong to In this case, whilst a man may have the right of properly pro the institution of property and to the people throughout the tecting his property an~ personal rights, it is manifestly the whole United States. I call attention to .M:r. Lincoln's message duty and is necessary for Congress to require the case to be in 1861, a3 quoted in the book which I have before me. presented to the people of the United States by the judicial The PRESIDING OFFICER (Mr. DAVIS in the chair). The tribunals, considering the question whether or not the death of Senator from Florida will suspend. The hour of 2 o clock hav the workingmen at Homestead, in the battle between the Pink ing arrived, it is the duty of the Chair to lay before the Senate erton soldiers and the people, was not caused by acts of treason the unfinished business, which will be announced. against the United States. The SECRETARY. A bill (H. R. 7845) defining "options" and The proper course to pursue, then, and in all such caszs, was "futures," imposing special taxes on dealers therein, and re to have abstained from the use of "troops" and a " standing quiring such persons engaged in selling certain products to ob army," to have appealed to the law, and if the law could not be tain license, and for other purposes. enforced in its proper mandates with warrants properly issued Mr. WHITE. I ask unanimous conssnt that the Senator from upon proper course after an offense committed, to appeal through Florida may proceed. the various forms known to our law to the State executive, and The PRESIDING OFFICER. The Senator from Louisiana through him to the people of the United States through their asks unanimous consent that the unfinished business be tempo Executive. rarily laid aside, in order that the Senator from Florida may Mr. PreEident, unless this can be done we are upon the eve conclude his remarks. The Chair hears no objection, and the of a great civil strife in which the people will be organized Senator from Florida will proceed. upon one side to resist the employment of standing armies and Mr. CALL. I shall occupy but a few moments longer. ships of war at the will and pleasure of individuals, and on the Mr. Lincoln says in this m essage, in 1861: other side, those who maintain the power of organized govern It is not needed nor fitting here that a general argument should be made ment and rely upon force to execute it. in favor of popular institutions: but there is one point, with its connections, not so hackneyed as most others, r.o which I ask a brief attention. It is the In my judgment it is absolutely necessary that this Congrass efi'ort to place capital on an equal footing with, if not above labor, in the shall prescribe this rule and this law, that a man shall be indicted structure of Government. It is assumed that labor is available only 1n con for raising troops, for using troops at his own sweet will and nection with capital-that nobody labors unless somebody else, owning capital, somehow b{" the use of it induces him to labor. pleasure without the S&Jlction of the courts and the authorities 'l.'his assumed, it IS next conside1-ed whether it is best that capital shall of the country; and this, in my judgment, is the ready and the b,ire laborers, and thus induce them to work by their own consent, or buy proper remedy. them and drive them to it without their consent. Having proceeded so far, it is naturally concluded that all laborers are either hired laborers, or what The men who have used military force, who have raised or we call slaves. And fnrther. it is assumed that whoever is once a hired employed standing armies, whatever name they may be called laborer is fixed in that condition for life. Now, there is no such relation by, have levied war against the United States. Says Mr. Chief between capital and labor as assumed; nor is there any such thing as a. free man being fixed for li!e in the condition of a hired laborer. Both these Justice Marshall: assumptaons are false, and all inferences !rom them are groundless. A standing army is an array of men, either armed or ready to be armed. Labor is prior to and independent of capital. Capital is only the !mit of labor, and could never have existed it labor had not first existed. Labor is It is the discipline and the training orthem. It is the holding of them in readi the superior of capital, and deserved much the higher consideration. Capi ness tor the execution or the personal will and pleasure or the man who tal has its rights, which are as worthy of protection as any other rights. Nor organizes and holds them at his command. is it denied that there is, and probably always will be, a relation between That is the definition which he gives of a military array, to labor and capital producing mutual benefits." levy war against the United States. Now, Mr. President, these are the principles which have been In this case of Aaron Burr, while the proof failed, the Chief taught to this people, by so great and eminent a source as this; Justice sustained the indictment, although the raising of these and it is a far more important question than any other question troopsJVaS in small numbers here and there, and the purpose of domestic policy. Important as may be the questions of the anti for which they were to be used was an indefinite and uncertain option bill now pending before the Senate, nothing in my judg one, to be derived from the facts of the case. It was finally al ment can excuse this body from giving its patient and careful leged tote a disturbance of the authority of the United States attention to the great dangers which now menace the countr.v in the city of New Orleans, whether temporary or permanent from the assertion of the right of organized capital to employ was held not tote of' any importance. armed forces to compel th-3 submission of labor to their demand. The President of the United States, Mr. Cleveland, whose mes sage is contained in the resolution submitted by the Senator from PRESIDENTIAL APPROVALS. Indiana [Mr. VOORHEES], made an important suggestion and A message- from the President of the United States, by Mr. 0. pointed to the necessity of some permanent tribunal for the set L.PRUDEN,one of his secretaries, announced that the President tlement of differences between capital and labor, as it is called had on the 21st instant approved and signed the following acts: using the term "capital," a term which, to my mind, conveys An act (S. 311) granting a pension to John Chamberlain; . very little meaning-between employers and the employed. An act (S. 639) granting an increase of r;ension to Michael ~ow far the jurisdiction and authority of the Federal Govern O'Brien; ment may extend in this direction does not seem so entirely An act (S. 1356) granting a pension to Abigail L. Finney; clear, but it is of importance that it should be extended so far in An act (S. 3061) to pension Edith S. Read; this direction as it possibly can be, because it is a tribunal not An act (S. 1279) for · the correction of the military record of of force, a tribunal of justice, a tribunal of peace, acting through Wilhelm Spiegelberg; civil and not military force. An act (S. 3447) to extend the privileges of the :first and seventh Whether or not under the clause of the Constitution relating sections of the act of June 10, 1880, to the ports of Bangor and ¥> interstate commerce it may be extended to those wrongs and Vanceboro, Me.; to persons engaged in interstate commerce is a matter upon An act (S.l129)forthe recognition of Henry·o. Kent as colonel which 1 will not venture an opinion. But that clause of the of the Seventeenth New Hampshire Volunteers; l:!Jld 6560 CONGRESSIONAL RECORD-SENATE. JULY 22,
An act (S. 2022) granting the right of way to The Mexican . 1 called a.ttentio?, however, I t~ink, y~sterday to the fact that Gulf, Pacific and Puget Sound Railroad Company over and there was m my Judgment a philosophically fundamental mis through the public lands of the United States m the States of take in attemptmg to forbid speculative tendencies on boards of Florida, Alabama, Mississippi, and Tennessee, and granting the trade where that tendency could be executed with reasonable right of way to said railroad company over and through the honesty and with reasonable precautions, and encourage and fos United Sjates naval and military reservations near Pensacola, in ter speculation where those restraints and restrictions and pre the State of Florida. cautions did not exist. The message also announced that the President had this day Last night my attention was called to a discussion of this ques approved and signed the act (S. 3454) fixing the time for holding tion in a work on political economy, which seems to be so op the circuit and district courts in the district of West Virginia. posite, so entirelv to embrace the subject-matter of this discu~ sion, that I will send to the desk and have read the paragraph DEDIOATION OF LAFAYETTE STATUE. to which I wish to call attention. Mr. Clerk, please begin at Mr. QUAY. Will the Senator from Louisiana yield the floor the top of page 100 and read to the mark at the end of page 101. to me to enable me to have passed a bill which I reported from Mr. STEWART. What is the work? the Committee on the Library, and which must be passed at the Mr. WHITE. Denslow on the Principles of Economic Philos- pressnt session to be effective? ophy. . The PRESIDING OFFICER. Does the Senator fromLoaisi Mr. STEWART. That is first rate. He is the ablest man ana yield to the Senator from Pennsylvania. who has written on that subject. Mr. WHITE. Yes, sir. The Chief Clerk read as follows: Mr. QUAY. I ask unanimous consent of the Sanate to proceed It is a. singular fact that markets have been the subject of popular preju1 to the consideration of the bill (S. 2799) to provide for the dedi dice and moral objection, almost in proportion to the perfection with which cation of the statue erected to the memory of the Marquis Marie they economize time, transportation, and effort, and equalize prices. The proper meaning of a market is not merely the place set apart in which buy Jean Paul Roch Yves Gilbert Motier de Lafayette, a major-gen ers and sellers may meet with their goods, but all that territory, with its eral in the Army of the United States. I reported the bill from groups of buyers and sellers, consumers and producers, of which the resi the Committee on the Library with the underatanding that it dents are so brought into union and contact with each other by the mutual intelligence which arises through reciprocal commerce that one price is aiY should be held here until a similar bill was passed by the other rived at by all with facility and promptitude. • House, but up t::> this time the bill has not been received from A market rises into its highest efficiency and value when it concentrate!~ the other House, and if the measure is to be effective at all it into one focus so large a portion of the buyers and sellers of a. certain commod ity as to become, in conjunction with one or two other markets of the same must be passed at the present session. So I ask for the present kind, an authoritative standard of prices of the articles in which it deals, for consideration of the bill. , all buyers and sellers through the world. By aid of the quick intelligence By unanimous consent, the Senate, as in Committee of the which the telegraph supplies and of the swift trahsportation which steam It affords the whole world is thus converted into one market having one price· Whole, proceeded to consider the bill. proposes to appropriate subject only to cost of transportation of the product between the point for $3,000 for the dedication of the statue of Lafayette in the city of which the price is quoted and all other points. Such markets are the Bourse Washington September 19, 1892. of Paris for stocks and securities, the London Stock Exchange as well as the The bill was reported to the Senate without amendment or London Produce Exchange, the Liverpool and New York Cotton Exchanges 1 the New York Stock Exchange, Produce Exchange, and Real Estate Ex~ dered to be engrossed for a third reading, read the third t1me, change and formerly the Gold Room and the Boards of Trade (grain ari.d and passed. provision exchange) of Chicago, in conjunction with those of the other West ern cities and that of LiverpooL The preamble was agreed to. Concerning these exchanges Prof. Jevons says: "The theoretical concep DEALING IN OPTIONS AND FUTURES. tion of a perfect market is more or less completely carried out in practice. It is the work of brokers in any extensive market to organize exchanges so that every purchase shall be made with the most thorough acquaintance. The PRESIDING OFFICER (Mr. GALLINGER in the chair). with the conditions of the trade. Each broker stlives to gain the best knowl The unfinished business will be proceeded with. edge of the conditions of the supply and demand and the earliest intimation ot The Senate, as in Committee of the Whole, resumed the con any change. He is in communication with as many other traders as possi ble, in order to have the widest range of information and the greatest chance sideration of the bill (H. R. 7845) defining "options" and '' fu of making suitable exchanges. It is only thus that a definite market price tures," imposing special taxes on dealers therein, and requiring can be ascertained at every moment, and varied according to the frequentt such dealers and persons engaged in selling certain products to news capable of affecting buyers and sellers. By the mediation of a. body of brokers a complete consensus is established and the stock of every seller or obtain license, and for other purposes. the demand of every buyer brought into the market. It is of the very essence Mr. HARRIS. I send to the desk an amendment that I in of trade to have wide and constant information. A market, then, is theoret tend to offer to the pending bill at the proper time. I ask that ically perfect only when all traders have perfect knowledge of the conditions of supply and demand and the consequent rati~ of exchange; and in such a. it may be read, and lie on the table. market as we shall now see, there can only be one ratio of exchange of one The PRESIDING OFFICER. The amendment will ba raad. uniform commodity at any moment. The SECRETARY. After the word "that," in line 1, section4, page 3, insert: Mr. WHITE. Mr. President, the object of the bill, the very In order to suppress and prevent all contracts and agreements known as classification defined in the bill, is to exclude the products which "options" and "futures" as defined in the first and second sections, with are dealt in on this kind of a market, and leave outside of the the exceptions speclfled in the proviso to the second section. operations of the bill the products which are dealt in in another The PRESIDING OFFICER. The amendment will b3 printed, or unrecognized market. I send up to the desk and ask to have and lie on the table. The Senator from Louisiana [Mr. WHITE] read the description of the other market to which the thinga not is entitled to the floor. brought into the bill are relegated. I have marked the passage Mr. WHITE. Mr. President, when I surrendered the floor on page 109 of the same work. yesterday I was discussing what I conceive to be the confusion The Chief Clerk read as follows: and the discrimination in the terms of the bill as to the provis In the sale of·carriages, pianos, jewelry, clothing, and other things which do not admit of such an authoritative contest over the price, there 1s great ions creating or defining · the acts which the bill prohibits, or inequality in the prices at which two persons in the same city on the same virtually prohibits, so as to show that the objects embraced in day may buy two things of the same kind and of equal value. Hel).ce there those definitions were defined by no rule, followed no coherent is great cheating in such trading. One may pay $200 tor a watch wnich an other buys for $100. There is no standard. In all these grades of goods long or consistent line of thought, conflicted one with the other, and credits must be given, as the dealers must hold the goods until they reacli ere utterly and entirely irreconcilable. If we view the bill as consumers. classifying the products as agricultural products, then a vast n urn But in articles dealt in by produce exchanges the price is advanced to the producer, and his crop can always be sold if he desires even before it is har ber of agricultural products were omitted. If we view the bill as vested. Hence the authoritative manufacture of prices confers somewhat a classification of food products, it omits many things which are the same benefit on a community as is conferred by an authoritative system foo products. of law, religion, manners, and ethics. It enables every man to know each mo.: ment how he stands relatively t() the results of his past exertions, what they In answer to that argument the Senator from Minnesota [Mr. have cost, and how much he can get for them. WASHBURN] yesterdaysaid that the lineof thoughtalongwhich the bill proceeded was to reach the things which were tradedin Mr. WHITE. Such, Mr. President, is the description of the on boards of trade. The argument which was had yesterday I market destroyed by the provisions of this bill. The agricul think led up directly to the conclusion that if that were the line tural products which have the safe and the sound and the en of thought which dominated the bill, then the ne0essary effect lightened and the progressive market as defined in this book, of the bill was to increase instead of decreasing gambling and and, asresultingfrom the nature of things, have the hands of palsy speculation, because, as this system of gambling and speculation put upon them by this proposed statute, and dealers are rele has its origin in the inevitable tendency of the human character gated to the character of market as defined so clearly by this to take risks, particularly under the conditions of modern life, author, where cheating and lying necessarily from the nature of the exclusion of a few articles which were gambled in to-day, things obtain. leaving the vast sum of human products out of the inhibitions of I think that is a complete exposure therefore of the discrimina the bill, would simply -deflect the channel of gambling from the tion which is found in the bill as to the nature of the products em bed intowhich itnowflowsinto a wider and deeper and stronger braced within it. But there is an answer yet more conclusive as and a more pernicious stream of gambling. to this discrimination. If the purpose and object of the bill is to 1892. CONGRESSIONAL RECORD-SENATE. 6561
strike with palsy transactions on boards of exchange, on boards of Mr. PILLSBURY. Yes, sir. Senator PLATr. To make every man who eats your fiour pay more for it trade, why is it that the terms of the bill leave out all that vast in consequence of le~latinn ? body of property running up into the hundreds or thousands of Mr. PILLSBURY. Yes, sir; so long as this country is an exporter of wheat millions, the bonds and stocks and values of every kind in this and raises one-third more wheat than it consumes. If we can keep the price of breadstutrs on a higher level, as it is well known that the little farmers country which form the great sum of the speculation of the have not had living prices for their wheat, I think it would be a good thing country? If the vice of gambling and the tendency of gambling for the country taken as a whole, and I think that Connecticut would be is what is reached by the bill on boards of trade or exchange, mor~ prosperous if the people of that State had to pay a dollar or two more for their fiour; I think that the general buying capacity of the Northwest why is it that the bill leaves the New York Stock Exchange and and wheat-growing States would be that much increased. That is my doc all the other great stock exchanges in this country open, where trine of political economy. values exceeding in value the things included in this bill are dealt in, by the very methods and by the very procedures which Mr. WHITE. Now, Mr. President, let us admit that the the the bill condemns? By what rule will we here, legislating for a ory of the proponents of the bill is true, these consequences will whole country, say that we will make our legislation partial; that follow. Are they just? Is there a Senator who admits that we we will select one class and leave out other and greater classes should legislate in favor of one class and ag·ainst the other? by applying the rule which the distinguished Senator has an Mr. WASHBURN. Will the Senator allow me just a mo nounced? ment? Mr. President, this discrimination as to the thjngs which are Mr. WHITE. Certainlv. made the subject-matter of the legislation in the bill, is, in my Mr. WASHBURN. Does not the Senator think it is fair both judgment, far the least discrimination which the bill contains. to the producer and tothe consumertoallowthe lawoftradeand The discrimination which hitherto I have demonstrated is as to supplyil My idea is that there should be no artificial change the object to which it is applied. There is a broade.c deeper dis whereby prices are made either one way or the other from the crimination in the bill as to classes in this country. I find in the legitimate law of supply and demand. testimony a statement by the president of the Milwaukee Cham Mr. WHITE. I, of course, anticipated and was approaching ber of Commerce as to the class distinction which is carried in the obJection which the Senator makes. But it seems to me this bill, which strikes me with so much force that I send it to there.1s a confusion of thought in the Senator's mind; I say it the desk to be read. with great respect. Is not the right to make a contract for fu Mr. GEORGE. What is the name of the witness? ture delivery as much a right as the right to make any other The Chief Clerk read as follows: contract? Has not the Supreme Court of the United States rec - Mr. Ba{}on, of the Milwaukee Chamber of Commerce: ognized that a future contract was a valid contract? Is not the sum of human liberty the right of a citizen to deal as he pleases Now, I wish to call attention to the fact that this legil;l~tion. if it is to and with such freedom as belongs to everyone? have the etrect which it is expected to have, and which is undoubtedly the object of the promoters of this measure, 1s legislation in f~vor of a class-in Of course, just legislation ought to balance every mans right favor of the producing class; and if it produces the etrect desired, it is legis equally and leave every man his freedom. But when it is pro lation against the inwrest of the consuming class. It stands to reason that whatever enhancement of value may inure to the farmer falls necessarily posed to restrain a man of his natural liberty to make a con upon the consumer. . tract, which right inheres in him, with the object and purpose Tbe census of 1880 (the figures for 1890 are not yet prepared) shows that of bettering one class to the detriment of the other, I submit it the number of persons engaged in all gainful occupations of the country is vicious and wrong in legislation. were 17,392,000 in round numbers; of those engaged in agriculture there were 7,670,000, constituting 44 per cent of the whole. Those engaged, as it is The only answer I find in the testimony is that there is such termed, in gainful occupations comprising the mercantile and manufactur a solidarity between all classes of a community that if you bene in~ and mining interests of the country; those engaged in agriculture com pnsing all who are engaged in any branch of agriculture, not only in the fit one the reflex resultant of this benefiting of one will so help the raising of grain and live stock, but florists, t1·eemen, and every branch of one who is injured as to cure the wound which you will have agricultural service; showing that« per cent of the population is directly inflicted by the statute. That is the argument. I shall not at · interested in the production of agricultural products of all kinds. For the benefit or that 44 per cent the other 56 per cent of the population, if the ob tempt to answer it now. Suffice to say that this is the argument je'Cts of the bill be accomflished, will be taxed; or, to speak tnore properly, put all through this testimony by those who urge this bill. I they are to be deprived o the benefit resulting from the operations of the shall have occasion, I think, in a few moments to show that natural and established laws of trade in their favor in order that 44 per cent of the population IIJ.ay receive a benefit. Now, the injustice of that is ap while they put this argument for the purpose of defending this parent on its face. part of the bill, when they reach another part of the bill which But I wish to go a little further on that J,>Oint. Of those engaged in agri is subject to attack, they deny the solidarity which they affirm cultural pursuits, the number so engaged m the ten cotton States is 2,837,· 000, which, deducted from t,he whole number engaged in agriculture, leaves here for the purpose· of defending this provision. 4,833,000 presumably engaged in the production of cereal and meat products, Now, let us see if there is not another discrimination in the which represents a percentage of 28 of the aggregate. Instead of those who bill, a discrimination as to persons. The second section of the are raising cereal products, who are supposed to be benefited by this bill, being 44 per cent of the whole, it would be only 28 per cent of the whole. bill, after defining futures and options, says what? It excepts Those who are engaged in raising cotton are, of course, consumers of cereal certain persons from every provision of the bill, and who are products and of meats which are. raised in the North, and they become suf those persons? The Government of the United States and every ferers in consequence of the enhanced values that are expected to result from the operation of this bill. I believe these expectations to be false, and that town and municipality. Now, what is the theory of this billr they will not be realized. But it is the purpose of the promoters of the bill The theory of the bill is that these dealings are wrong, that they to produce this result for the benefit of those engaged in raising cereal and ought to be forbidden. It looks to me as very bad public policy meat products of the country, and if it does produce that eftect in benefits28 per cent of the people at the expense of 72 per cent of the people. Now, I to denounce a thing by a prohibitory tax and then immediately submit whether this is fair legislation, to say nothing of the wisdom of it. declare that the Government may do it. That looks to me inde fensible. What answer does the distinguished Senator make to Mr. WHITE. Now, I send up to be read the opinion of Mr. this objection? He says, and I quote from his speech: Pillsbury a.s to the effect of this legislation if the purpose of its The United States or any State, Territory, county, or municipality do not authors is successful. I desire to say before the Chief Clerk reads come within the provisions of this section, for the United States, or an:v the excerpt that in the course of my remarks to-day I shall ha-ve State, Territory, or municipality, does not make its purchases or supplies of occasion to refer to Mr. Pillsbury as an authority on the subject boards of trade, but they are usually made by receiving bids or proposals matter under discussion. At the very outset I wish to distinctly from parties who ha>e the articles desired to be purchased. announce the fact that in referring to Mr. Pillsbury I intend by The Government is excepted from the operation of the bill no way, directly or indirectly, in the remotest possible manner because the Government deals with people who have the ob to refer to the distinguished Senator from Minnesota because jects which they propose to offer. Is not that entirely inaccu of the fact that he has a business connection with Mr. Pillsbury. rate? Does not every body know that nearly all the supplies which There is no Senator on this floor for whom I have a higher re are furnished this Government are tendered to the Government spect and a more profound admiration than the Senator from by. people who have not got them and who have to acquire them? Minnesota; and if I make these references in the discharge of The very coal which is to beat this building at the next session my duty I wish to enter at once a disclaimer of any possible im of Congress has been contracted for, I am told, by one who is a putation that in any way in the world I wish to indicate that I coal-dealer, and he has a contract for future delivery with a think the distinguished Senator is impelled in his course on this m-iner who is to mine it. bill by anything but the highest sense of public duty to his coun The-,;efore, this exception is all wrong. It is a plain discrimi try. nation. The reason given for it is wrong. The reason given for The Chief Clerk read as follows: it strikes me as a very confused reason. If the terms of the bill Senator• PLATT. Then comes the other question which I was going to ask: do not reach the Government, then why is the Government ex Suppose this bill can be passed; do you think it would have any eftecton the cepted? The very making of the excaption in the bill under average price of wheat tor the year? Mr. PILLsBURY. I think decidedly it would. every elementary rule of construction is a negative pregnant Senator PLATT. Would make it higher? with the affirmative that if the exception were not made the Mr. PILLSBURY. Yes, sir. Government would be included; and yet the Government is ex Senator PLATT. And then the people who eat thewheatwould have to give more tor it? cepted on the ground that the bill does not cover the Govern Mr. PILLSBURY. They would. ment, when if that be accurate there wa3 no necessity for the Senator-PLATT. Do you think that is a good thiug? governmental excep!ion whatever. XXIII-411 6562 CONGRESSIONAL RECORD-SENATE. JULY 22,
Let me show by a curious coincidence how remarkable this ex It neither seeks nor does it in any wa.y interfere with the :freedom of com· ception is. One of the subject-matters included in the bill, and, merce, but leaves legitimate trade wlthout restriction or hindrance. as I hop to demonstrate later, will be ruined by it, is cotton. These words were delivered in a discussion of this bill with
Where did dealing in futures in cotton arise? Such trades in the twelfth section in it1 with the twelfth section in it which im cotton futures arose in O.ealing with the Government. This is posed a license of $2 upon all trade in actual cotton, even the shown by an examination of a work which is the most authorita trading taken out of the operation of the definitions in the bill. tive work on cotton, Mr. Donnell s work, the accepted authority It is said of this bill to-day, which, even after the motion to strike with everybody in the cotton trade. Mr. Donnell was a broker of out' the twelfth section has carried leaves the thirteenth section great merit and high character, who, having accumulat-ed a com in it; that section provides that wherever an internal-revenue petency, has retired from business and devoted himself to the lit collector has reason to believe or to presume that any man is do erature of this subject. In discussing the question of the origin ing the things forbidden by the act, although he be makino- the of the future delivery of cotton he says: future sales which are allowed, shall have a right to call fo~ and Oo ntr·acts for f uture d.elivenj.-This business commenced during our civil inspecthis books and business. war. The freedom from unreasonable search arose with Magna Speaking of cotton: Charta; have we come now to this state of things in the Ameri Some of our manufacturers entered into large contracts with the Govern can Senate that a contract which all the courts have declared to ment, and covered themselves by purchasing the raw material for delivery be lawful, which the bill admits to be lawful, is submitted to the a.t some future time. The price, within certain wide limits, was then of much right o~ search upon the mere suspicion of an internal-revenue less importance than the certainty of getting the cotton when needed.-(E. officer; yet the declaration is made that there is no intention in J. JJonnell's History of Ootton, page 614.) this bill to interfere with the freedom of trade. The earnest Now, the Government is excepted :frt>m the operation of this ness of purpose and the zeal of the distinguished Senator, the bill on the ground that the bill does not apply to the Govern evil which he sees and wishes to cure for .a. great public purpose, men&; therefore showing that the exception ought not to be here. have so dominated his mind and clouded his vision that there It is excepted on the further ground that people who sell to the lies a fog between his mind and th e great and elementary prin Government have the property when such is not the fact. Here ciples of American Government, he sees freedom where I see the development comes that the very origin of dealing in futures slavery and oppression. in cotton came fromcontractslVith the Government made during Mr. President, let me pass away from these thinio-s. I wi.sh the civil war. n seems to me this answer is complete-- to discuss the essential features oi the bill now. have dis Mr. WASHBURN. Was it made on a board of exchange? cussed it hitherto on the theory that it was unconstitutional. 1 Mr. WHITE. I have already answered the Senator's ar gu have taken up its contrarieties, and its confusions, and its con ment about the boat·d of exchange. I have already demonstrated, tradictions, anti its stipulations against human liberty and ele I think, that trade can be a great deal more safely made on a mentary rights. I propose now to turn my baek upon all that. board of exchange, where all the dealers, all the sellers, and all I propose to urge the defeat of this bill, supposing that this was the buyers, are congregated, where thereis an ascertained and a body with no restriction on it whatever, that this Senate was established price, than it can be made where such a thing does the most. untrammeled and absolute legislative body in the not exist. world, that the Constitution was a myth, and all the restraints Let us take the distinction as to persons. The farmer hM of English-speaking government a mere chimera which we h ad been left out from the prohibition of the bill. I think hereafter forgotten and which we were never to recall: I say looking at when I come to another part of the bill I can show that this is this bill from this point, it is pernicious and vicious, that it will an illusory jack-o'-lantern exeeption left in this bill to lure the strike a blow at the commerce of this country the length and farmer on to his destruction. But suppose I should not demon breadth and width and depth of which no human mind can com strate that, by what theory are we to say, here is a class of con pass until its results of disaster have worked out. Let me see tracts which we strike with moral and legal inhibition, and then if that is true. immediately take out of the reach of the inhibition a certain fa There is an elementary principle of legislation that in mat vored class of persons? ters of commerce the wisest, safest, best, the most enlightened Mr. President, the germ of more harm to the farming class process is to accept the judgment of the men who by long com lies within that exception than words can tell. They, above all mercial training and long commercial experience have a. knowl other people in the race for honest goverm;nent, require no dis edge of the commercial subject-matter in hand. That is an crimination. They, above all other people, must guard them elementary rule. There is not a court, I think, in this land sit selves against the arbitrary exercise of governmental power for ting to-day with a jury empaneled between man and man-I do the purpose of favoring classes. In this proposed statu~e the il not know how it is in the other States, I know it is so in mine lusory concession which is made to them is sure to become the and I know it is laid down in elementary books on evidence fruitful source of untold injuries to come to them hereafter. that if a complex commercial question were presented to that But it may be said the farmer makes the crop; the farmer in jury a commercial expert would not be allowed to testify. All the tends to get a crop. This bill only allows him to sell the crop great reforms in our system, the protection of innocent holders, which he has in process of fruition or which he intends to make, th~ rights accorded to third parties, all our system of insurance, and it uses that expression. Does that differentiate the proposi all our system of maritime law, are not originally the creatures tion? Isthefarmer'sintention to make his crop anymore serious of statute. They were all brought forth from a mighty evolu than may be the intention of the man who contracts to deliver a tion, which treated the aggregate sense of the commercial world thousand bushels of wheat on a particular day? Is the realiza on a commercial question as the aggregate common sense of ./ tion of his intention any more possible? Is the certainty that mankind. · the intention which is in his mind is going to take life and being Now, what is the fact about this bill? There is a persistent, by the production of that crop any more certain than would be consistent, a. universal declaration of all the commercial bodies the ability of a man of fortune, with the money in bank, to buy in this country against this bill, and specifically pointing out the the product that he is going to buy in the fulfillment of a con evils which will result from it. tract? Is it not absolutely certain, on the other hand, that the Mr. President, I send to the desk and desire to have r ead the risk of not being able to fulfill, whatever may be the honesty of protest of the Chamber of Commerce of the State of New York. the intention, is greater in the farmer's case than it is in the The VICE-PRESIDENT. The protest wHl be read. other? The Secretary read as follows: There is the exception written into this bill of retail dealers, THE CHAMBER OF COMYERCE OF THE STATE OF NEW YORK. and I suppose other exceptions. I think that makes this an ex • Meeting of Thursday, March 3, 1892. ceptional bill, so entirely exceptional that I think it ought to be The committee on internal trade and improvements, to whose attention beaten. .was brought a request from the New YorkCottonE.:xchangeto join in a. pro But let me call attention to another thing. All through this test against three btils which have been recently presented to Congress, viz: testimony, and I want to emphasize this fact-all through this House btil No. 2699, by Mr. HATCH of Missouri; Senate btil No. 685, by Mr. WASHBURN, and Senate bill No. 1268, by Mr. PEFFER, reported as follows testimony, there is the admission that it is absolutely essential through Chairman Louis Windmuller: for the successful commercial sale of the things which are' stated It appears to have been the mistaken notions of the framers that they could in the bill that trade for future delivery in them should not be benefit producers as well as consumers if they throw obstacles in the way of dealers, to sell what they do not own and buy what they do not need. They hampered. Even the persons who most favor this legislation in evidently believe that such sales and purchases tend unnaturally to dlpress their testimony say we would be against this legislation if it or advance values. TheyJseem ~ to forget that these so-called specUlators hampered legitimate trade. The distinguished Senator from must deliver what they have sold and pay for what they bought. The price of cotton is low, not because it was sold short, but because the production is Minnesota in his speech on the bill said: large and consumption is small. - I desire right here to distinctly state that it is not the purpose of this btil When a manufacturer 1s anxious to secure raw material for future orde1·s, neither does it-in any manner whatever to interfere With the bargain, pur which are otiered to him at a time when cotton on the spot commands a chase, or sale of any product or property where the party making such sale higher price than he can pay. the middleman, who anticipates a. reduction is the owner thereof or where he has a contract for the ownership or right of values, comes forward and agrees to furnish it at a figure which enables of possession of the same. the mtil owner to close contracts for the fabrics demanded by his customers. 1892. CONGRESSIONAL REOORD--SENATE. 6563
Breadstuffs are high, not because they were bought for arise-, but because ~ent, Chase National Bank; J. K. Cilley, president, Ninth Na they a.re needed by nations whose crops have been a failure. .An exporter tional Bank; D. C. Hays, president, Manhattan Company; receives an order to forward at certain llmits, when navigation opens, to a George Bliss...!. of Morton, Bliss & Co., bankers; Ladenburg, "Port on tb,e Baltic Sea., a cargo of corn. It is unobtainable and not wanted Thal.mann&uo., bankers; Knauth,Nachod&Kuhne, bankers; lor immediate delivery. The dealer in futures steps in and agrees to furnish Lazard Freres, bankers; Baring, Magoun & Co., bankers; t.O the exporter what he wants at the time when he needs it. Brown Bros. & Co., bankers; J. & W. Sellgman & Co., bankers; It is indisputable that such dealers have become useful factors in the gen Heidelbach, Ickelheimer & Co., bankers: Kuhn, Loeb & Co., eral development of commerce ever since it has assumed large proportions. bankers; Blake, Brothers & Co., bankers. They take risks by which future wants are provided in our home market as CHICAGO BANKS AND BANKERS. wen as in foreign countries. When. they overstep the llmits of prudence, they are the sllfrerers, rather than producers and consumers. A combina CHICAGO, ILL., February 4,1892. tion ot such men is not powerful enough to control prices of the great staples To the Congress of tlte United States: of this country beyond their natural level, so as to cause serious injury. The undersigned hereby respecttully and urgently protest against the en But even if the public should occasionally sllfrer because the markets have actment of Senate ~ill No. 1757, "defl.ning options and futures," and known ~en forestalled, your committee does not believe that the course provided as the Washburn bill.. by these bills furnishes a proper remedy for the evil. PasteXJ?erienceshows We believe that the passage of any such bill would be not only seriously that legislation will only do harm when it tries to interfere With the natural detrimental to the agriculturist, but would be of incalcnlablo injury to laws of trade. the manifold industries of the entire country, inasmuch as these industries Your committee therefore recommend that this Chamber join the Cotton depend for their profl.table prosecution upon that system or buyina and Exchange and the other commercial bodies throughout the country in a pro selling for future delivery.which the Washburn bill would destroy. "" test aga.inst the passage of these bills, as they would injure the best interests We believe the dealings m futures in ~ain and hog product, as regulated of the community. by the Board o! Trade of the city ot Chicago and similar exchanges based On motion the following resolutions were unanimously adopted: on the actual delivery of the commodity traded in, are the highest develop Whereas there has been introduced in the Senate of the United-States by ment, after years of experience and labor, or the best system of handling the Senator W .ASKBUBN ot Minnesota, bills known asS. 685 and S. 1757, and in ~~~~~ous crops of this country to the most prof!. table advantage of the pro- the House of Representatives by Representative HATCH of Missouri, a bill liuown as H. R. 2699, levying a tax on purchases and sales for future delivery This system affords an open market on which the world's competition can of cotton and all hog products of 5 cents per pound, and on wheat, corn, oats, meet in establishing values without the limitations and restrictions which b~rley and other grain of 20 cents per bushel; and an exclusively consumptive demand would impose. Whereas should any one of these be enacted into law the result would be Its d.aily declaration of values is an analysis of the wo1·ld's product and the suppression of trading in this country in what is known as contracts for requirement, and reduces to the minimum the risk of those engaged in future delivery of the articles mentioned, to the great detriment of all per handling the crops, thereby securing to the producer the highest bids at all sons engaged in their growing, handling, or coru;uming: times. Resolved, That the Chamber of Commerce of the State of New York hereby By this system our merchants yearly advance millioDB of money for the enters its solemn protest aga.inst the enactment into !laW of any of the be cribbing and warehousing of grain throughout the country, which, without tote-mentioned bills now before Congress, or of :any other bill or bills of the protection of the present market, would not be done. similar purport. To destroy this system, as cont-emplated by the Washburn bill, would re Resolved, '£hat this Chamber hereby expresses its condemnation of any duce the circulation of money when most needed to move the crops would attempt on the part of Congress to enact laws for the supposed benefit of greatly restrict credits owing to uncertainty of values, practically drlve the one portion of the community as aga.inst another. , small grain merchants from the fl.eld, and concentrate the business of hand Resolved, That whatever the asserted evils may be incident to this method ling the products herein referred to in the hands of wealthy corporations of doing business, it affords a measure of security and protection to legiti ana syndicates of warehousemen and millers. ·mate traders as well as to the producers of the articles named that is not to Corn Exchange Bank, by Ernest A. Hamill, vice-president; llli be disregarded. nois State Savings Bank, by J. J. Mitchell, president; Bank of Resolved, That it is the opinion of this Chamber that no good can result to Montreal, Chicago, lll., by Willia.m Monro, Manager; Union the agricultural interest of the country by any legislation that curtails and National Bank, by August Blum, cashier; The Northwestern restricts tree and untrammeled tra.ding. National Bank of Chicago, byE. Buckin.gha.m, president; The Resolved, That the great law of supply and demand regulates values of .Metropolitan National Bank, by E. J. Keith, president; The everything, and that no particular system of trading can ever more than Atlas National Bank, by C. B. Farwell, vi.ce-president; Mer temporarily, if at all, obstruct its full operation; that this inexorable law chants' National Bank, by C. J. Blair, president; The Mer always has and always will operate whether a man sells what he does not chants' Loan and Trust Company, by J. W. Doane, president; possess in the hope o! securing it at a. later period at a less price or not, and The Commercial Nat~onal Bank of Ohica~o, by H. F. Eames, that any effort having 1n view the abolition of "short selling," if enacted president; The AmeriCan Trust and Savmgs Bank, by G. B. into law, would not only fail to secure the imaginary benefits sought, -but Shaw, president; Fort Dearborn National Bank, by John A. would be productive of incalculable injury to legitimate business interests .King, president; American Exchange National Bank, by John while this fact is in process of being determined. B. Kirk, president; The Union Trust Company of Chica~o, by Resolved, That a copy of this protest be forwarded to each Senator and S. W. Rawson, president; The National Bank of IllinoL'3, by Representative in Cong·ress. Geo. Schneider, president; Hibernian Banking Association, by GEO. WILSON, Secretar-y. J. V. Clark. president; First National Bank of Chicago, by R. J. Street, cashier; Continental National Bank, by John C. Black, Mr. WIDTE. Mr. President, I sent up and had read first the president; The Columbia National Bank, by z. Dwiggins, memorial of this great body, because by its constitution and or cashier; The Globe National Bank, by D . .A. Moulton, cashier; Royal Trust Company, by J. B. Wilbur, cashier; National ganization it is not a trade body. It is not the Chamber of Com Bank of the Republic, Chicago, TIL, by John A. Lynch, presi merce of New York City. It is the Chamber of Commerce of dent; The Hide and Leather Nat.ional Bank,.Chicago, lll., by the State of New York, perhaps one of the greatest bodies of Charles F. Grey, president; The Northern Trust Company, by Byron L. Smith, president; National Bank of America, by commercial advisers in the commercial world to-day, composed Morton B. Hull, vice-president; Bank of Commerce, by H. of men, many of whom are removed from practical business, men Felsenthal, president; Commerc:ia.l Loan and Trust Company, of large fortune, dealing in vast sums, men of great ability and by James B. Hobbs, president; Chemical National Bank, Chi· cago, Ill., by G. E. Hopkins, cashier; Franklin Ma.cVeagh: Mar thoroughly versed in the movements of commerce, whose opin shall Field; Sprague, Warner & Co.; Lord, Owen & Co.; Mark ion and judgment expressed on any commercial question any ley, Alling & Co.; Pitkin & Brooks; Ried, Murdock & Co.; W. where where commerce is carried on would have great weight M. Hoyt & Co.; Kelley, .Maus & Co.; M. D. Wells & Co.; Selz, Schwab & Co.; Phelps, Dodge & Palmer; Butler Bros.; Car and great responsibility. son, Pirie. Scott & Co.; James H. Walker & Co.; Hy. W. I now send up to the desk, Mr. President, and ask to have King & Co.; C. M. Henderson & Co.; Sweet, Dempster & Co.; raad the memorials of the banks and bankers of New York, the Wells & NellegarCotnpany; Hibbard, Spencer~artlett & Co.; McCormick Harvesting Machine Company; .t • 6564 CONGRESSIONAL RECORD-SENATE. JULY 22, morials themselves; and I request that the list be printed as a part prostituted gamblers? That is the inevitable outcome rrom the of my remarks, and that the memorials also be printed as a~ ap arguments which have been adduced on this floor; arguments pendix. ~n ~y jud~ment, in t~e dom.ai!l of re.ason, as :flimsy and as want: The VICE-PRESIDENT. Thatorderwill be made if there be mg m log1eal foundatiOn as It IS possible for argumentation to be. no objection. The Ch~ir hears no objection. It is so ordered. No, Mr. ~resident, when we come to commercial questions and Mr. WIDTE. I ask that the list be read. find t~e universal ?onsensusof C?mmercial mankind.agreeing to The VICE-PRESIDENT. The list will be read. one. thmg, all tendmg to one thmg, all supporting an evolution The Se~retary read as follows: which has come, which is here, and which must remain I say . LIST OF EXCHANGES, BOARDS OF TRADE, MERCHANTS, MILLERS, ETC., PRO· against all this the opinion of any one man here or there or' orne · TESTING AGAINST ANTIOPTION BILL. where else should weigh as nothing. If we were dealinD'with a New Orleans Cotton Exchange. theory, if there were here~ que~tion of natural philosop"hy or of Savannah Cottot;t Exchan~e. cheiDlStry, perhaps one mmd With one ray of light could shed Houston Cotton Exchange and Board o! Trade. oyer the whole universe a splendor which all the world had not Mobile Cotton Exchange. Greenville Cotton Excha.nge. discovered. But when we come to the practical thinD'S of life Memphis Cotton Exchange. things that were not born but were evolved from com~erce be~ Milwaukee Chamber ot Commerce. ?ause ~ommerce is not ~ birt~ b.ut an evolution, the only safe ~·ule Chicago Board or Trade. New York Produce Exchange. IS to listen to commercial opmwns. Commerce is a creation of New Orleans Board ot Trade, Limited. the aggregate practical common sense of mankind, and nothin~ New Orleans Clearing House Association. ever obtains universally in commerce that has not bee-r.. founded Bankers, millers, and merchants, or Toledo, Ohio. Baltimore Corn and Flour Exchange. upon the rock of things practical. Chicago merchants and manufacturers. It. is a mistake .t? say, as has been intimated here, that these Minneapolis Clearing House Association. bodies whose petitiOns I have presented are bodies, not of pro Minneapolis Business Union. ~ucers. Why, the only body I am familiar with, Mr. President, Minneapolis Chamber of Commerce. IS the Cotton Exchange of New Orleans. That exchanga bas a Mr. WHITE. Now, Mr. President, in the face of this almost great many producers, agents, or factors of planters as members. universa.! commercial opinion are we going to pass this bill? It has the buyer and the seller, the planter, and the factor w borep Will it be said, as was intimated on this :floor, thatperhapssome resents a vast volume of planters. If you were to-day to put an of the bankers may have objection to the bill because it would exhaust pump on the cotton fields of the Southern country, and affect their deposits of margins on futures? Can that be said of draw out _of those fields the money which has gone from' these this great body of bankers throughout this country? commerCial bodies and whose only hope of return is in the fru Why, Mr. President, but a while ago when I put the question ition and wise marketing of those crops, you would cause no as to the discrimination against one of the large interests of the greater dest~uction to s'Yeep o~er those fertile and laughing country by this bill, the only answer made was that there was fields than Will, I am afraid, result from the passage of this bill. such a solidarity of interest that the benefits of one would be re Now, Mr. President, having laid down these general princi sultingly compensatory for the injury to the others. Solidarity ples, I propose to look at the origin of this system of future deliv of interest which is affirmed, as respects the discriminating ery and see whence it came. clause of this bill, is now denied in the face of this great testi Where did it take its birth? ·If we look back forty years and mony of commercial men from one end of this country to the picture the condition of things at that time, and then look at the other ,men who have been dealing in these methods of business and condition of things to-day, sum up the whole mass of human ac who know their utility to the commerce of the land. quisition existing now and compare it with the human acqui i Why, sir, there is hardlyacottonplant bloomingi.n the South tions of those days, we shall have a resume of the growth of this ern States to-day, there is not a leaf of a cotton plant smiling in future system. the wind which does not trace its way back in some way by some There is not a spark of electricity encircling the world to-day connection however remote to the capital which is represented like a :flash of lightning which does not carry in its womb the in these petitions. That capital will suffer as much as will the germ of an undeveloped future contract. There is not a railroad producer by the passage of this bill. tra~ dashing.over the land t_t;at has not written upon its loco The railroads, all the great interests of the country, act and motive headlight the necessity of future contracts. There is react one upon the other, and you can not strike down the pro .not a steamship plowing the vast deep, with all the rapidity ducing element of this country without striking down these great of ocean transit which now obtains, that does not at evel'Y puff of interests. When you find all these enlightened interests, all her mighty engine repeat and repeat again to the commerce of these men and bodies who are inseparably connected with the the whole civilized world "the necessity of future contracts. interests of the country uniting on a purely commercial question . I fou~d, Mr. President, this morning, ~n a pa:per recently pub in unbroken opinion a to the commercial harm which is to come lished m New York on the death of an IllustriOus man, an esti from a given commercial restriction it seems to me it is trivial mate of the consequences which had come from the electric cable to the last degree to say that their interest isnot the interest of joining Europe and America. The writer of that articl9, with the producer and that the producer can be stricken down without much lucidity, called attention to the fact that it was the inter their feeling it. mingling and intercommunication betweer... man and mau. which These banks and bankers are the instrumentalities bv which had generated this closeness of union in commercial transactions the producer makes and moves his crops. The greafbank at out of which had developed this system which dominates the New York loans its money to the bank elsewhere, who in turn commercial . world to-day and which lies at the foundatien oE loans it to a factor, who loans it to a planter. The fa-ctors in every human business. There is not a civilized human being New Orleans loan money throughout the Mississippi Valley to who does not bear living evidence not only of the necessity bu·t their constituents to enable them to make their crops. The the universality of this practice. ability of one of these classes to pay the other depends largely The.very material from which the coat I wear was woven was upon the making of crops. The increased ability to pay de probably bought on future delivery. The spinner who spun it, pends upon what the crop will bring in the markets of the in order to save himself from loss, had sold it for. future deliv~ ry world. in order to be guaranteed a price which would be remunerative. And yet we are t::>ld now, as to all of these great interests, There is not a thing to-day which enters into the use or cons urn p complex and involved, united as by the inevitable laws of nature tion of mankind which, under this modern and universal system itself, that these merchants do not belong to the producing class of future delivery, is not covered by contra-ct in one way cr the and have no right to a judgment on this great matter of com other to save loss which would otherwise result. merce. That argument denies the only premise upon which The inevitable tendency of modern business is to draw }: eople the discrimination in the bill as to classes can possibly be justi together, to make intercommunication of man with.man great9r. fied. The inevitable result is equality. The future bu iness is the But, Mr. President, we are. not left to opinions in our own necessary. result of the struggle between men for equality. Be· country. All over the world-in England, in Germany, in Aus fore the future business came into being the large capitalists, tria, in France, in Holland, in India, in Egypt, everywhere the mighty millionaires, of whom the Senator from Minnesota this system of forward-delivery sales, which is an evolution to speaks, had to fm·nish the money with which to carry on com meet the wants of modern trade, obtains and is practiced. merce. This future system, as I have said, is the r esult of the Yet, at this late day is this great body, representing the great struggle for equality. Before it came large fortunes were re est commercial people in the world, the most active, the most en quired to carry and hold the pl'Oduct and submit to the great lightened, the most fertile in resources, the most advanced, we are expense and risk which resulted from the holding them until to be called upon to listen to the contention that all the bankers taken by con3umers, whereas now the ingenuity and quickness of the world, not only in this country but everywhere, the great of the minds of men, responding-to the wants of modern trade, business men of the world, all the exchanges of the world, with have engendered this system of future delivery, which has put out reference to nationality, are a mere body of degraded and every man upon a footing of equality with every other man, en:- • 1892. CONGRESSIONAL RECORD-SENATE. 6565 abling one without large capital to be the equal relatively of the Thirdly. Such " futures" originate with buyers, since if no one wished to buy ahead no one could sell futures. Each buyer pays a margin on his con man with great capital. - tract suffl.cient to secure the seller against loss in event of a fall in price and I can recall that in my boyhood, in the city of New Orleans, no delivery. Tbe futures run in links from the consumer back to the pro the great commercial houses, the great English houses with ducer. In such cases they ca. use a current of advance payments to set in from the dealers in the futures or purchasers. large sums of money, the agents of the Brown Brothers and the This is in elrect a movement of money in ad vance from the consumers or agents of other great bankers, the Baring Brothers, did busi their representatives on the board of trade, to and among the produc'ers. ne3s there. When exchange was to be drawn to pay for cotton, Farmers are thus enabled to get advances on their grain and planters on their cotton, whereby the harvesting is virtually done by the capital ad the Baring Brothers or Brown Brothers bought it. If cotton vanced by the consumer. This converts articles like cotton and wheat, for exchange was taken to a bank, there was danger of it being re which prices are established by " futures," into "cash " articles, or ar ticles fused for fear the price of cotton might go down. The banker on which lon~ advances are had, whereas cotton goods. furniture, and manu factured articles are sold so invaria.Qly on long credits that ~ven " ca. h " would say, "If I take this bill except upon the credit of the means thirty days after delivery. drawer, a decline in the price of cotton in the future will make a loss." So it resulted that the business was transacted largely Mr. President, I also send to the desk, with a request that upon the personal credit of these great houses, or on the cradit it be read, an excerpt from Contractual Limihtions, which is a of the cotton~ buyer, who required to be a man of fortune. modern book, published in 1892, by an ex-chief justice of the But now a man with an office and without much capital is as supreme court of Indiana. It contains a statement of the prob good as the Brown Brothers. He gets his cable order from the lems involved in these moaern methods of business which I think spinners be represents on the other side to buy cotton. He buys so clear that I desire to insert it in my remarks. spot cotton and sells it for future delivery. He sells the very The Secretary read as follows: exchange which he is to draw for future delivery. He must Trading in cotton futures was established in New York in 1870 and in New know the rate of exchange before he can make his price, and Orleans a few years later. As I am more familiar With the cotton trade than with the other trades in which transactions in futures are made, I will con asks the bank to agree to take his exchange at a date in the future. fine my remarks more especially to cotton futures. Contracts in cotto:J. fu Every transaction conr:.ected with it is a future transaction·. His tures are made for the delivery in lots of 100 bales during the month con possibility of dealing without capi talis caused by the fact that an tracted for, such delivery to be at the seller's option upon five days' notice to the buyer. An order on the warehouse for the cotton is tendered for every insurance resulting from future delivery is put upon.every ar notice of delivery by the seller to the party to whom he has sold. If the ticle that is dealt with in the course of the transactions as they buyer has also sold the cotton for d~livery during the month for which he has received notice, it is customary for him to transfer the notice of deli very go along. and warehouse order to the party to whom he has sold, and such transfers See what a r avolution it bas worked in the Southern States. are made until3 p. m. of the day of issuing the notice or until its r eceipt Formerly great masses of cotton would come to the city of New before that hour by a party who has bought but has not sold, or who desires to receive the cotton, and this party receives the cotton from the one who Orleans and be stored. The buyer was gone. Decline was rapid. issued the notice and warehouse order and pays for it. It required the actual presence of a man of means to buy this As thosewho have bought and sold have no interest beyond the difference property in order to hold it. Because the buyer must submit in the price at which they bought and the price at which they sold, it would if be a useless expense to have the cost of delivery and receipt incurred. for himself to the risk of loss cotton declined. each change of ownership, when the passing of the warehouse order accom What is the situation now? Why, the receipts, as tliey come plishes every purpose and saves unnecessary charges. All immediate par in, are distributed over the year under this system of future ties between the party who issues the notice and warehouse order, and the contracts. Cottonisboughtfor future delivery and is thus taken party who receives the cotton settle with each other the difference between the price of their respective contracts and the price at which the cotton is re from th~ spot market. The sni.all consumer is enabled to buy ceived and paid for. In the course of business it happens that many con because he is not obliged to pay cash but can take advantage of tracts are settled before the month of their maturity and without actual a. tra~saction for future delivery. That is the situation. It has delivery of cotton. For instance, a merchant may sell for a planter a. con tract for October delivery, and the next day he may buy for a Southern cot curtailed the profits of th~ millionaires. It has reduced the ton buyer a contract. tor delivery the same month, and if these transactions charge to the producer. are made with the same party on the exchange, a direct settlement would Mr. President, I telegraphed the secretary of the Cotton Ex be made as between the two members of the exchange. A merchant might sell to a party, who might sell to another, and this other change of the city of New Orleans to ascertain what were the might have previously sold to the first party, all the transactions being for charges of the middleman now as compared with such charges the same month's delivery. This would make a settlement or contracts be formerly. I have a telegram in reply, in which the secretary tween the three and is called a "ring settlement." These "ring settlements " are purely matters of chance. Tney may be elrected very soon after the says: transaction, or they may not occur for months, and they may not occur at NEW ORLEANS, LA., July 22, 1892. all. They do not in the slightest degree enter into the matter of the original While no regular statement can be made, owing to irregularity of-charges, transaction, which is based upon the probability and intention of actual de you can safely state that under old system, including cost of advancing com livery of the cotton contracted for. In much of the legitimate business at mission on sales of cotton, commissions on purchases of supplies, insurance present the transactions In tut~res are of great benefit to producers, manu rebates, etc., cost on a bale of cotton averaged fully $5 per bale. To-day mil facturers, merchants, bankers, and the general public. lions of bales are sold direct from interior avoiding many extra charges un About three-fourths of the cotton crop is usually marketed during the first der the free-on-board delivery system at 25 and 50 cents a bale under the free four months of the season. If such a large proportion of the crop was forced on-board and future-delivery· systems which have built many flourishing upon the market for immediate sale, the effect would certainly be to unduly interior centers. Many of the old items of charge have been abolished; and greatly depress prices. By the sale of futures against consignments of these will be largely restored if present trade methods are interfered with. actual cotton relief; is often given to an overstocked market and better prices HENRY G. HESTER, Secretary. are secured for the planter than would otherwise be possible. If prices are satisfactory, the planter can direct his merchant to sell futures against his Hon. E. D. i'Jrtft:f8tates Senate. , crop before it is actua.lly ready to be marketed and thus secure the benefit of a remunerative price which might not be obtained if the sale could not be Now, Mr. President, I desire to have read a statement of the made until his crop had actually reached a market. results of this business found in the .same book which I have read from this morning, commencing on page 103 and going Mr. WHITE. Mr. President, having referred to the general down to the marked paragraph on page 10--:1:. That states with lawa of trade from which the future system wa'3 evolved, I now such lucidity the evolution of these economic problems_that I in propose to summarily restate some of the benefits which it con cline to agree with the distinguished Senator ft~om Nevada fers on the cotton-planter. (Mr. STEWART] when he said this morning that he considered It gives him a wider, sefer, relatively higher, and less fluctu the author.one of the most lucid of political economical writers. ating market. The Secretary rea:d as fol).ows: It cheapens the rate at which the producar obtains the money Three independent economies exist in the pra.ctice of buying and selling to make his crop by enabling the factor and all who deal with the for future delivery, say one, two, or three months ahead, which could not producer to sell by futures the proauct with which the producer be elrected by buying grain on hand and taking present delivery. First. Buyers for consumption, millers, exporters, and foreign purchasers Is to pay them, thus diminishing their risk and enabling them can, through these, convert a future unknown price into a known price, so to reduce their char?"es to. the producer. far as is necessary to enable them to base future contracts for production thereon. Suppose a manufacturer or cotton goods or iron, feeding his own It has diminished the charge of the middlemen by drawing the men, as indirectly he does, and-obliged to estimate the rate at which he can producer and consumer together, by enabling the buyer to sell afford to take orders according to the rate at which he can buy bread and for future delivery and buy the producer's crop to fill his future provisions, it is plain that he could "figure" the rate at which he could take orders more closely it he could make certain his own future rate of expendi sale already made. ture on his supplies or food and provisions. This he could do by buying in It has multiplied buyers and brought them to the door of the August, deliverable in October. consumer. Secondly. Precisely as buying in a wide market equalizes prices over a wide area ot country and enables millions of persons to produce the same It has multiplied investors qy enabling them to buy actual cot product in close competition with each other, so buying for a considerable ton and sell futures against it at a small advance to cover inter period of time, or " going long" spreads and equalizes over a long period of est and charges, thus making the investment safe. The investor, time the changes in price which are made inevitable by n atural causes, such as war, drought, flood, great or small harvests, and the like. Equalization having sold for future delivery against his purchase of actual cot of prices over time is as essential to steady production as equalization of ton, is absolutely safe, is submittgd to no risk of fluctuation in prices over wide areas and numerous groups of producers and consumers. the market, and therefore can afford to pay a better price to the If a raise of 20 cents per bushel in wheat is made necessary by an impending war between two grain-growing countries, and if one buyer knows it three producer. months ahead, and buys his supply at an advance of 2 cents per bushel, he It has enabled the spinner to pay a better price to the con not bnly saves his own supply, but be brin~s the ma.t'ket two points nearer sumer. He buys his cotton for consumpticn hy me:ms of a future where it ought to be, and thus serves millions of producers and consumers who are interested in the raise being both early and gra:iual, not late and contract, thus obviating the risk of a decline in the mar kat. He spasmodic. sells the goods which he is to make from the cotton by a future 6566 CONGRESSIONAL RECORD-SENATE. JuLY 22, contract, thus insuring a profit and thus enabling the spinner to surplus, rapidly. The universal ru1e, almost, used to be that you could buy the wheat cheaper at that time than at any other time, and you could make do his business on a narrower because a safer margin of profit. a. fairer profit on the actual holding of the wheat than you could at sueh It has brought the cotton fields of the South nearer to the great t1mes when these movements of the farmers were less. • centers of Americ-G.n and European consumption by diminishing Let me repeat it. - the risk, thus reducing the difference in price which formerly You could the wheat cheaper at tb.a.t time than at anYi other time. existed between cotton in the field of the producer and that ~uy cotton at the door of the consumer. Mr. Pres1dent, the system of futures was introduced in order It has relieved banking capital, thus leaving more money to to prevent purchasers from taking advantage of the time when assist the planter in making his crop. ~he farmer was shipping rapidly, buying low, and then selling All thesa things, Mr. President, are the necess!ll'y resultants ~ t afterwar~s for a large profi. t. After the system of futures came of the firat~roposition, which is that the system of selling cot m, when thlS v.ast surplus was accumulating, this was prevented. ton for future delivery gives the producer a· wider, safer, rela Not only the riCh-man, but the poor man, could buy for future tively higher, and less fluctuating market. If this proposition delivery without any risk whatever. Every contract so made be true all the others necessarily follow. necessarily relieves the pressure on the market and gives the Now let me show the existence of these benefits by an examina producer a better price. Mr. Pillsbury, in what I hav-e just tion of the state of tho cotton trade before and after the future quoted, admits this. · period, so that by a comparison between the two periods the mind But he goes further- Question: Mr. LoNG. Well, now then; as it stands now the miller can not may be able to det.ermine, not by abstract r easonincr, but by the carry the wheat and :flour, because there is a large risk attached to it in con touchstone of absolute and undeniable fact, whethe; the b:mefits sequence of wind selling. Then, it this wind selling has the strength that which I have stated have or have not resulted. ~~:;~l~~a.;a(t is manifest that it has a prejudicial influence against the In the d!>main of theory minds may differ. The moment we advance an abstraction, 0:1e mind takes one view. and the other Mark you, the question is inconsequential. The answer to the takes another, and the union of the two:minds becomes impossi previous question had been that it was prejudicial to the miller ble because of the divergent premises or the contradictory de of wheat and the question says" prejudicial to the raiser.' Now ductions which the minds make. mark the answer: But when we enter the domain of absolute and unchallenge Mr. PILLS"BlmY. Yes, sir; against the raiser of wheat able fact, then the only question which remains is first to ascer Here comes the gist of the answer- tain the truth and then follow it. By that touchstone I hope to and the miller before- demonstrate that this system has been a merciful blessing to the That is, before the system of :'futures"- cotton-planter of the Southern country and to the cotton trade, could generally use his good judgment and make money by the rise of wheat. and that its destruction will entail upon that people in loss of I would state a tact, which perb.a.ps would be a s~rise to most of your com price and incidental sacrifices a sum equal to, it may be $100,000 - mittee,. that I have no doubt the milling interests m this country, ta.ken as a 000. l ' whole, m the last ten years have paid the farmermoremoneyforwheat than they have gotten out of him.. That is the fact through the Northwest. I shall say nothing of the grain trade. There a.ie Senators w~?-o are mot~e familiar than I am with the movements and oper Mr. President, this bill proceeds upon the theory that the atiOns of gram. I may say, however, that the theory and opin farmer has.not got his full mer the interest on their money and that went out to the mar b efore I do that I desire to send up and have read a list of tele kets of the world and paid the expenses, etc., and profits back to the mill gram . I have compiled the telegrams all into one. The phra man. · seology of this one telegram is not literally the phraseology of That is the question. the many which I have received, but they were all substantially in to Answer: Mr. PILLSBURY. The universal rule used to be that the miller the same, and I have put the signatures under one order generally accumulated wheat say, when the farmers were putting in their avoid duplication. · 1892. CONGRESSIONAL RECORD-SENATE. 6567 'l~he PRESIDING OFFICER (Mr. TURPIE in the chair). The The table referred to is as follows: paper referred to will }Je read. The Secretary read as follows: [From Cotton Facts, by A. B. Shepperson.) COTTON FAGrORS OF NEW ORLEANS. st~nent of tMnual crops, export\f:~ 1Jtt~ted States consumption of cotton. NEW ORLEANS, LA.., July 18,1:392. To Hon. E. D. WHIT1il, l:nited States Senfi1e, Washington, D. C.: Exports. jHome consumption. We ask your efforts to defeat Hatch n.ntioption bill. Its passage will lower prices, injure planting interest,s, and badly a.trect cotton business generally. Total Takings STEW ART BROS. & 00. PHELPS & CO. Season. crop. To Great To Conti- Total Takings of South- GEO. W. SENTELL & CO. THOS. L. AIREY. Britain. nent. exports. of North· ern mills HYMAN, HILLER & CO. LEVY BROS. ern mills. · and SIMON E. MARX. ROBERT DAY & CO. (Limited). burned. J . FREIJHAN & CO., H. ABRAHAM & SON. Bayou Sa1·a La. J. WEIS & CO. LEHMAN, STERN & 00. BALDWIN & PUTNAM. 1841-'42 ... 1, 684,000 936,000 529, coa 1,465,00J 268,000 (a) JOHN M. PARKER & 00. BICKHAM & MOORE. 1842-'43 ··- 2,379,000 1,470, 000 • 540,000 2,010,000 325,000 (a) R. M. WAMSLEY & CO. W. B. THOMPSON. 1843-'44 -·- 2, 030,000 1,202,000 427,000 1, 629, 000 347,000 (a) PUGH & CO. CHAS. CHAFFE. 1844-'45 ... 2,391,000 1,439,000 6!5,000 2, 084,000 389,00') (a) 1845-'46. -· 2 100, 000 1, Hl"Z, COJ 565, ()()() 1,667, 000 423,000 (a) Mr. WHITE. Mr. P resident, most of the names found in that 184&-'i7 ·-· 1, 779, 000 831,00-J 410, 00() 1,241,000 423,000 (fl) telegram are the names not of cotton-buyers, but of cotton-sel 1847-'4 2,423,000 1, 321. ()()) 53!, 000 1, 853,000 532, 00\J 75.00J 1848-'49 === 2,8W,OOO 1 538. 000 690,000 2,2·!.8, 000 5HS.00) Ilt, UOO lers. They are the names of the great body of the cotton factors 1849-'50 - .. 2, 201, OJ() I, 107,000 483,000 1, 590,00:> 488.00) lO i, (}JJ of New Orleans who carry the almost entire crop of the Missis 1800-'51 -·· 2,415,000 1,418,000 511,0;)() 1, 98). t,'OJ 401,00() 60,000 sippi Valley. 1851-'fi2 - -· 3, 126,000 1,659,003 775,000 2,4-H,O:>J 58',000 lll,OOJ· 1852-'53 ... 3,416, 000 1,737, 000 791 , 000 2,5:~.000 650,000 153. OJJ Mr. GEORGE. There is an important name missing from 1853-'54 . .. 3,075,000 1,604, 000 715,000 2,319,00) 592, 000 145,000 that list. 1854-'55 ... 2, 983.000 1,550,000 694,0CO 2, 244., 000 571,lXlO 13.~ , (){)!) Mr. WHITE. Wh033 name? 1855-'56 -·· 3,665,000 1, 921,000 "1,03!,00) 2,955, 0J0 633,0)() 133,0.. {) Mr. GEORGE. Richardson & May. 1856-'57 ... 3,094, 000 1, 429,GOO ~),()()() 2, 253, 000 605.000 154. ceo 1857-'58 ... 3,'l:'Ji, OOO 1, 810,000 78V, OOO 2,590,000 45:.!,00) 14:'. C.0 I Mr. WHITE. I send up a telegram from Mr. May, of Rich 1858-'59 ... 4,019,000 2,019,000 1,002, OOJ 3, ru1,ooo 700,00) 16,, 0JJ ardson & May. 185)-'60 ... 4,861,000 2, 669,000 1, 105,00) 3, 774,00J 793, ow 18G, 03J Mr. GEORGE. I noticed the absence of the name. 1860-'61 ... 3,849,000 2,175,000 952,000 3, 1:!7,000 650, 000 193,00:1 1861-"600 -. ------· ------The PRESIDING OFFICER. The paper referred to will be 1865-'66 ... 2,278,000 1,2ti2, 000 293,000 1,5:>5.000 541.000 127,0JJ read. 186&-'67 --- 2,233, 000 1, 216,000 341, 000 1;557,000 573, 000 150. 0:>0 1857-"68 . .. 2, 599,000 1, 228,000 428,00:> 1,656,000 fOJ, ()()() HiS,O"JO The Secretary read as follows: 1868-'69 . -- 2, 43-i, 000 98'J,OOO 458, 000 1,447,000 82!,00:> 173.000 [Telegram.] 1861)...'70 --- 3,114,000 1, 475,00) 701, OOJ 2,179,000 717, 0::0 80, 000 NEW ORLEANS, LA., July 18, 1892. llrn>-'71 . -- 4, 347, coo 2,368. ono SOJ, 000 3,168,000 1,07"4, 000 9l ,OOv E . .n. WHITE, 7Jnited States Senate: 1871-'72 --- 2, 974,000 1,474,000 483,000 1, 957,000 977,000 1~'0 , OOJ I believe the passage of the antioption Hatch bill will do incalculable dam 1872-'73 ... 3,8:'4, ()()() 1,920,000 750,000 2,676,000 1,033,001) 133,00!) age to the cotton trade and cotton planting in the United States, and I in 1873-'74 --- 4, 130,000 1,85~,000 959,000 2,811, O:JO 1, tre, ooo 128,COO voke your earnest efforts to defeat it. 1874-'75 --- 3,831,000 1,833,000 841, 000 2,&i4,0JO 1, 071, 000 1:::0, ()()() A. H. MAY. 18'(;r.'76 --- 4, 632,000 2,005,000 1,227, 000 3, 232,000 1, 2:20, ()()() 13-l, OO::l 1876-'77 --- 4,474,000 1, 994,000 1,034, ()()() 3,023, OOJ 1,302, 030 127, 1.100 Mr. WHITE. Mr. President, some Senators here know per 1877-'78 -·- 4,774,000 2,00,000 1,30:!,000 3,356, 000 1, 345, OOJ 151,000 sonally Mr. John T. Hardie, of the city of New Orleans, and his 1878-'79 ... 5, 074,000 2, 053,000 1,413, 000 3,466,000 1,315,000 I 198,000 1879-'80 ... 5, 761,000 2,554,000 1, 3i0, {X);) 3, 864,000 1,57!,000 223, 00t) great business experience. I had a telegram to the same effect 1880-'81 ... 6,606,000 2,832,000 1, 73:' OJO 4,565,00) 1, 713,000 230,000 from him. 1881-'82 --· 5,456,000 2,295,000 1, 2>t; ,OOJ 3,551,000 1,677,000 287,000 I repeat, that these telegrams are not from cotton buyers, but 1882-'83 . -. 6, 950, ()()() 2,886,000 1, 8&1.000 4, '7'.24, 000 1, 759,000 313,000 1883-'84 ... 5, 713,000 2,485,000 1, 43'2, 000 3, 917,000 1,537,000 345,000 they are from cotton sellers; and there does not live a body of 1884-'85 ... 5, 705,000 ,2, 425,000 cl, 495,000 3, 920,000 1,437, 000 318, 00) more enlightened and honorable merchants than those whose 1885-'86 --- 6, 575,000 2, 565,000 d1, 711,000 4, 335,000 1, 781,000 385,C0) names are found upon that list. Many of them have been in the 1886-'87 ... 6,499,000 2, 70!,000 e1, 741,000 4,445,000 1, 687, OO'J 422,0::JO cotton industry from its infancy, and in a.1l its trials and tribula 1887-'88 --- 7, 047,000 2,814,000 /1,813,000 4,6~,000 1,S03,000 459,000 1888-'89 ··- 6, 939, OJO 2,810,009 ~· 9"26,000 4, 736,000 1,790,000 485,000 tions. They have followed it through it all, and they are doing 1881)...'90 ... 7, 297,000 2,854, 000 , 052,000 4, 905, ()()() 1, 780,000 530, COJ it to-day, as theybave always done, honestly and wisely. 1890-'91 ... 8,674,000 3,345,000 i2, 445,000 5, 791,000 2,027, 000 620,000 I desire to say another thing. Among that body of high minded and enlightened gentlemen and progressive merchants, a No estimate. e [nclud.ing 40,774 to Mexico. who have been in this business for all these years, there are bCivil war-no record of cotton flncluding 33,203 to Mexico. movement. ~Including 41,259 to Mexico. found none of these great aggregations of wealth to which the clncluding2S,()9...8 to Mexico. Including 28,414 to Mexico. distinguished Senator from Minnesota. refeL·red. There is hon d Including 34., 1.25 to ~exico. ilncluding 31,443 to ¥exico. est competency among them, and many are large cotton-planters. I have received beside these a telegram, which I desire read, Mr. WHITE. Now, what is the claim which those who defend from the deal9rs in rice and sugar and produce in the city (If futurasalesadvance? The claim is this: That as ina few months New Orleans. the whole cotton crop was precipitat-~d upon the market, this The PRESIDING OFFICER. The paper referred to will ba created a glut in the market, and put the producer largely at the read. mercy of the buyer. The crop either had to b3 sold or to be The Secretary read as follows: stored. If the buyer was not there to take that crop then there NEW Olu.EANs, LA., July 19, 1892. was this vast mass of receipts, and, of course, there was a serious Ron. E. D. WHITE, Washington: We, the unders~d dealers in rice, sugar, and produce, consider the anti decline in the market. option bill as detrimental to business and feel that its passage would work Our total spinning capacity in this country represents a little injury to our interests. under a third of our crop-somewhere between a third and a BLOOM & SON, B. W. SEAGO, LEFELRERE & MARIONNEAU, J. A. HARRAL, fourth. I will not b3 accurate in this. statement. The balance MILTENBERGER & FLOWER, ELMER & ZEEBROOK, of the crop was for exportation and the agents of the graat Eng 0. DOYLE & CO., G. SCHWARTZ. lish buyers ana consumers were there; and if they did not buy, JOHN W. COYLE, the price went down. Mr. WHITE. I will not encumber the RECORD by more tele Under the slstem of "futures" has this evil incraased or has grams. I take it for granted that il a man wanted an opinion as it dimillished. It should have increas3d largely, because before to the operation of this bill upon cotton, he could not go to a the future period the crops came in more slowly than they do now. more enlightened source for the information than to these gen Why? In the first place, the greater part of the cotton crops in tlemen-information coming, as I said just now, from sellers of the South in the olden times was made by slave labor, and if tbe cotton; information coming from men who are solely interested price was not satisfactory the large planters were able to hold that it should bring as high a price as possible; information com their crops for an advance. In the second place, a great part of ing from men who have watched these movements through all the cotton was grown on the alluvial lands along the streams, and these years with a solicitude born of the keenest interest because the only exit to the markets of the world was the rising of the they are always involved in it. When that is the case, when the water in tho3e streams. All these things and others of less im universal opinion of the commercial world sustains them, am I to portance tended at ths.t time to retard some1vhat the incoming be told that we are to take the opinion on the subject of men of the crop of cotton. Daspite that fact, in the first months of the who have had no experience whatever? season, beforefuturadealingcameinvogue,when thecotton came But let me now come to tiguras. I send to the reporter and in there was always, unless there was some abnormal condition, desire to have incorporated in my remarks-I will not have it which can easily be explained. a serious depression in the mar read-a table showing the annual crop the exports, and United ket, which put the producer ab:;olutely at the mercy of the con States consumption of cotton since 18!1, which is brought down sumer. Who was to take it but the c:msumer'.) He ayailed of his to 1891. advantages and fixed the pric3. 6568 CONGRESSIONAL RECORD-SENATE. JULY 22, As this evil grew, the system of futures was devised, and de Mr. GEORGE. At all the ports? vised for what purpQse? Devised for the purpose of bridging Mr. WHITE. At all the ports. Now, I want to call attention over this glut, of preventing this cotton which came from being to these figures. I shall not read the whole list, but the table pushed upon the market, thus allowing it to be bought by a man will speak for itself in the RECORD as part of my remarks. who could not pay for it at once, but who could do so two or In 1889-'90 there was received before the 31st day of Decem three or four months off, thus necessarily spreading the large ber, 4,270,000 bales. In 1870-'71 the amount was 1,642,000 b:lies, receipts over a longer period instead of throwing them all upon and it is but little over 2,000,000 bales, as a rule, running down the market and causing them to be sold for the prices the con the list, until we get to 1878-'79. Then it was 2,651,000 bales. sumer was then willing to give. Mr. GEORGE. V~t me ask the Senator right; there if he has Mr.-GEORGE. Will the Senator allow me to ask him a ques got the total for each year, so as to show the proportion? tion for information? Mr. WHITE. I have already offered as part of my remarks Mr. WHITE. Certainly. such a statement. Mr. GEORGE. I understand the position of the Senator from Mr. GEORGE. The Senator does not understand me. The Louisiana with reference to the cotto:::t traie to b3, that now, subject will be more understandable if the table is inserted. owing to the increased facilities for marketing the cotton crop, Mr. WHITE. If the Senator will allow me, lam dealing with railroads and all that sort of thing, contrary to the fact as it ex staUstic8,and if he does not 1etmeproceed with an orderly state isted many years ago. when a very large amount of cotton was men~ , he will confuse me. precipitated into the New Orleans market, much more than was Mr. GEORGE. I do not wish to interfere with the S enator. needed then by the consumers-am I right that far? Mr. WH1TE. In making a statistical statement, without in Mr. WHITE. I say the receipts are larger now than they were tending to be discourteous, I should prefer not to be interrupted. then. I did not enter into that question. I spoke of the price Mr. GEORGE. I beg pardonof the Senator. I will not inter of cotton. rupt him again. :!\fr. GEORGE. Then I understand the Senator to say-and I Mr. WHITE. Wehad notreachedahigher figure than2,600, want to understand him and I want him to understand me, be COJ in 1876-'77; in 1891-'92 the total receipts up to the 31st day cause I know there are many difficulties about this thing-! of December were 4,783,000 bales-nearly 5,000,000 bales. understand the Senator to say that but for the "future" system Now, just make the comparison. In 1~70-'71 there were 1,642,- of dealings this cotton would be thrown upon the market then 000 bales; in 1~1-'92, 4,783,000-nearly 5,000,000 bales. and there in its glutted state, and there would be a great fall in The table referred¥> is as follows: price. Is that right? Tabfe showing the increase in th~ quantity of cotton markded during the first Mr. WHITE. I was 'not saying that when the Senator was four months of the seaG'On since 1870. · kind enough to interrupt me. I had advanced. that as a theory in my argument before, and I was proceeding to demonstrate as Date of ar Cottonre· Receipts at rival at the a fact that it was so. I am not engaged now in the statement of ceived at the the ports ports of one theoretical problems. I was endeavoring to put my theories to Season of- ports Sept. 1 for entire half ofthe the touchstone of fact by showing that such was and is the case. to Dec. 31. season. season's Mr. GEORGE. Very well. Then I understand the Senator receipts. to change his position a little "from the way I understood him, for now he - ~tates the proposition a little differently, that the Bales. Bales. 1870-'71 ------1, 642,000 3, 958,000 January 17 records of the commercial exchanges and the cotton exchanges 1871-"i'.l ------1, 392,000 2, 732, 000 December 29 demonstrate the fact that when this cotton gets into New Or.. 1872-'73 ------1, 68t,OOO 3, 595, 000 January 8 leans or other markets in the fall in this glutted state, the result 1873-'74 ------1,858,000 3, 764,000 January 1 1874-'75 ------2,106,000 3, 509,000 December 16 is that that there is a fall in the price? 1875-76------.... 2,340,000 4,195, 000 December23 Mr. WHITE. Always. 1876-'77 ------2, 601 , 000 4., 035, 000 December 8 Mr. GEORGE. Let me go on. Now, I understand the Sena 1877-78------2,398,000 4, 334,000 December22 1878-'79 ... - -·------' 2, 651,000 4,451, 000 December16 tor to say that the" future" sales or the'' future" system will 1879-'80 ...... ------3, 134,000 5, fYZ7, 000 December 10 counteract that, but it does not now op3rat3 in that way owing 1880-'81 ------.. ------3, 447,000 . 5, 878, 000 December 16 to the" future" system. Is that so? · 1881-'82 ------3, 247,000 4,688,000 December 3 1882-'83 ------·------3, 531,000 6, 010, 000 December 18 Mr. WHITE. Oh, no; I did not say that, I said not to the 1883-'84 ------: .------3,494,000 4, 800, 000 November 30 Same extent. 1884-'85 ------.. : . 3,642,000 4, 774,000 November26 Mr. GEORGE. Very well. It lessens it, then? 1885-'86 ------3,572, 000 5, 358, 000 December 4 1886-'87 ------3,732,000 5, 301, 000 December 2 Mr. WHITE. It lessens it seriously. 1881-'88 ------4,011,000 5, 612,000 November23 Mr. GEORGE. ·Letusunderstand this. What prevents under 1888-'89 ------3, 714,000 5,547,000 December 5 this bill every single bale of cotton that reaches New Orleans or 1889-'90 ------4, 270,000 5, 856,000 November26 1890-'91 ------·------4,430,000 6, 979, ·ooo December 8 any other port in these crowded months, these months of surfeit, 1891-'92 ------.. ------.. ---- 4, 783,000 *7, 150, 000 *December 1 being sold for future delivery? Mr: WHI'l'E. I beg the Senato·r•s pardon. He is now making *Estima.tE\d on basis of receipts to July 15, 1892. an argument, and not asking a question. A comparison with twenty years ago shows that the receipts at the portis Mr. GEORGE. I am asking a questiop. for the four months ending December 31, 1891 were nearly three and a. half Mr. WHITE. No, that is making an argument. I was not times larger than for the corresponding period of 1871, and exceeded there ceipts of 1871 by 3,391,000 bales. The cotton marketed during the first four discussing whether it could be done under this bill. I am simply months ot the season of 1891-'92 exceeded the entire crop produced in any now demonstrating the fact that the system of ''futures" had season previous to that of 18i8-'79. It will also be ob3erved that while the prevented the c~msequences of over receipts, and in the course date of arrival at the ports of one-half of the season's receipts was in 1871 on January 17, the date of such a.rriv~.l of recent years has been from November of my argument, if theSenatorwillallow me, I intend to discuss 23 to December 3, or about six or seven weeks earlier. the matter he is speaking of. • Mr. GEORGE. I am very much obliged totheSenatorforhis Mr. WHITE. This table also shows the dat3 of the receipt of courtesy, but this is a matter in which my constituents feel a one-half the crop. On it I find thisinstru'ctive statement. One great interest, and I do not want to make a mistake about it. I half of the total crop in 1870-'71 had arrived by January 17; in thou~h t that the Senator had asserted a proposition and a theory 1 '7~-'73, January 8; in 1873-'74, January 1, and now and then whicn could not be made to fit the facts of the case. If now the one-half the crop arrived at various days in December. In Senator, who has been so very courteous to me as to allow me to 1838-89, by December 5 one-half of the total crop had arrived in interrupt him s:> far, thinks I am trespassing and that he will the city of New Orleans and other ports. ln the following year, answer this mattar further on, then I have only to say that I 1898-'91, one-half of the total crop had arrived by December 8. thank him for his courtesy so far, and that if my life and health In 1891-'92 the crop is estimated, because we can not make it are spared I shall try some time during this debate to answer complete, and it is estimated on the basis of receipts up to July any position which he may take, which goes to show that the 15. price of this large a!Ilount of cotton in New Orleans or in the Thi ~shows the great pres ure of r ~ ceipts on the market; this other market places of this country is not affect3d by the future shows how the cotton pours in now at an early day. Who is to sales, except deleteriously. buy this cotton? If all this cotton is precipitated upon the mar Mr. WHITE. Mr. President, in illustration of what I was ket and if it had required actual buyers to be then and there saying, I hold in my hand a table. I will comment upon the 1·ea:ly to take it up for immediate delivery, why would not the table before asking tQ have it printed with my remarks. I have producers have been at the mercy of the consumers? How can tabulated the receipts of cotton at the ports of thiscountryfrom I show that this system of futures produced the result of obviat 1870-'71 down·to1891-'92. The figures are startling. From Sep ing·the consequences of the glut by selling not only to those tember 1 to Decemb ~ r 31 there were received in 1870-'71 1,64~,- wanting for the present but also to those requiring it for the fu 000 bales of cotton. There were received in 1871-'72 1,392,000 ture or more remote periods? I think I can do so not only by bales. reasoning but also by facts--' 1892. CONGRESSIONAL RECORD-SENATE. 6569 Mr. BUTLER. May I interrupt the Senator a moment, be New Orleans. Every future sale is registered in the New Or cause I want to get at the real facts, and I know he does? leans and New York Cotton Exchanges. The stater:nen t contains Mr. WHITE. Certainly. the future sales in the cities named of the cotton crop from Mr. BUTLER. Is it not a fact that a great deal of the cotton 1880--'81 to 1890--'91, inclusive-the whole volume of those sales, which the Senator says goes into all the ports of the United States the volume of the crop, and the average price of spot cotton for at certain dates has been already bought from the producers? each season. Mr. WHITE. Yes, sir; of course. The table referred to is as follows: Mr. BUTLER. The farmer has sold it? Total sales of futures in New York and New Orleans, and cotton crops 1880-'8 Mr. WHITE. There is no doubt about that. . to 189D-'91, inclusive. Mr. BUTLER. So that when the argument is made that ~h~t has any effect upon the producer, I submit to the Senator if It Average price were true, and if the statement which I have just made be true, Season of- New York. New Total. Crops. middling his argument falls to the ground. Orleans. in New Mr. ·wHITE. On the contrary, it confirms my argument.. If York. the Senator understands-and I was coming to that as a? ~m~1re lSS0-'81 ______answer .to the Senator from Mississippi [Mr. GEORGE]-It IS JUSt 26,721,800 5, 239,600 31,961,400 6,605, 760 lli 3'.west prwe you don't;" that when the glut comes the farmer's cotton is taken was October 21. 1853· take 1884-'85, and the lowest prwe was Oc at a low price and sold at a high one after the farmer has al tober 24:, 1884; ~nd the lowest price in.1854-'55 was December 15, ready marketed. 1854· take 1885--'86, and the lowest price was February 26, 1886, In other. words, the claim is that the future dealer takes the and the lowest price tn 1855-'56 was Nov~mber 9, 1855. . hand of the farmer and leads him down into the depths of the The depression, therefore, of both perwds was as a rule com Slough of Despond, and when he is led down and all his products cident with largest receipts. taken away from him, then up goes the price and the specu JJatesof lowest pr·ices of middling Upland cotton in New York during each sea lators take the advantage. That, Mr. President, is absolutely son from 1li50-'51 to 1860-'61, and from 1887-'81 to 189D-'91. and entirely false in every particular, as shown by my figures Although it is untrue, it seems to be an opinion entertained by Date of low Season of- Date of low Season of- some, doubtless from error of fact. est price. I est price. I now send to the desk to be read the testimony of Mr. D. W. McCune, who represents the National Farmers' Alliance. . 1850--'51a ------Aug. 5,1851 1880-'81c _____ ------May 10,1881 1851-'52 ------Dec. 26,1851 1881-'82 ______Oct. 17,1881 The PRESIDING OFFICER. The paper referred to will be 1852-'53 ------Dec. 14,1852 1882-'83d ------Apr. 4,1883 read. 1853-'54 ------Oct. 21,1853 1883-'84. ______Sept. 1,1883 The Secretary read as follows: 1855-'561854.-'55 ------______Nov.Dec.15,1854 9,1855 1884-'85·------1885-'86 ______Ocl;.Feb. 26,188624,1884 Now, then, if the claim be just which is made by the other side here, that 1856-'57 ----· ------Sept. 2,1856 1886-'87 ------Nov. 4,1886 this fUture selling regulates and controls and. keeps up the market, and if it 1857-'58 ------______Jan. 5,1858 1887-'88 ______---- ______Oct-. 3, 1887 also be true that it can be made to have a temporary effect upon the market, • l858-'59b ------June 3,1859 1888-'89 ______Oct. 7,1888 then it follows if the pressure brought to bear at the beginning of the sea l859-'60b __ ------____ July 20,1860 1889-'00 .. ___ ----- ______Nov. 4,1889 son temporarily reduces prices, then by means of this system they keep it 1860-'61 ------Dec. 5,1860 1891-'9le ______Aug. 17,1891 down, and, as was ably shown by the gentleman from Minnesota. who testi fied·on our side, it had the effect ot. frightening away would-be investors, that it frightens away legitimate capital that would otherwise be induced to hold this crop when there was a superabundance, and it they could estimate a Crop of 1851-'52 proved to be the largest up to that date, and when it be on the volume of the crop and the volume of the demand and have some rea came apparent in August, 1851, that the uew crop w~uld be greatly in excess son to believe it was an invf\stment they would go into it, but owing to the of any previous season. prices eould not be maintamed. manipulation of these futures it was so unsettled an operation that it horned b Warlike apprehensions in Europe caused serious declines in prices in off and kept the legitimate investors fright-ened away aud they would not June, 1859, and July, 1860. take hold of it at all. Now the same is true, and the point, that I am gradu c Crop of 1880-'81 was largest grown up to that time. It exceeded previous ally intending to show is this, that by this system they keep the mills horned crop 845 000 bales. Its vast size was not fully realized by the trade until May, o!I. They squeeze the cotton out of the producer and they k~ep tp.e con 1881 whEm prices declined under the large stocks. sumer horned off, so that he will not buy a pound of cotton until he 1s com d Crop of 1882-'83 exceeded all previous crops, and was about 1,500,00:> bales pelled to have it, and they keep legitimat9 capital frightened awa.yso that greater than the preceding crop. This was not plainly seen until April, 1883, they will not invest in it. when prices declined to lowest of the season. Now, this system does not result from a little buyer who buys a few hun e Crop of 1890-'91 exceeded the estimates made in November, 1890. by over dred bales and sells against it while his cotton is going to market; it is not 1,000, 000 bales, and when it was seen that the crop of 1891-'92 would also be from legitimate business men at all, but it is done by these combinations large the prices gave way. that manipulate, that squeeze the crop out of the hands of the producer and hold it through the season and deal it out in driblets as they need it at a Now, I want to call attention to another fact. I hold in my high price. hand a statement of the total sales of futures m New Y01k and • . 6570 CONGRESSIONAL RECORD- SENATE. tTULY 22, Of course tha.t is impossible; but I do believe that there is a certain pa.rt of Reference to the seasons from 1866-'67: to 1879-'80 has been it-that is, the part of it that is carried on a large scale at exactly the right time, when the crop comm-ences to move, when the money is scarce, when omitted because they covered. what is known as the reconstruc the big buyers who have agents all over the country want to buy. that they tion period, as well as the time of suspension oi specie payments. ca-n turn and fairly ftood the leading fUture market-New York-with sales The fluctuations in cotton during these years were very great. and offers to sell and depress the price very materially. I do not see how anyone can deny that. Now, I am taking, Mr. Chairman. a more conserva and the fl~ctuations for the four years immediately precedini ~ive position perhaps than I believe, but I am taking it so as to be sure and the establishment of the future-delivery business in New York JUSt. were ~he l_argest of wJ:-ich there is any record. The fluctuations Mr. WHITE. Before I meet that argument I desire to call for m1ddlmg cotton m New York in 1866-~67 were 17 cents· in attention to the difference between the Senator from Minnesota 1867-'6~, 17t cents; .in 1868-'69, 10! cents; in 1869-'10, 15!: cen~. and this gentleman. The idea of the Senator from Minnesota ~nt 1t ~y ba s::ud you ~ave calculated in the range of ftuctu seems to be that this future system prevents the enhancement of atwn, and m order to arr1ve at the range of fluctuation you h.a.ve price, drives it down always and continuously. The idea of the taken the highest and lowest price durin Mr. WHITE. Evidently the Senator is very anxious. In other words1 taking the prices month by month since the Mr. RANSOM. I am very sorry I disturbed my friend-ex future peri.od you find a small decline, a decline when the cotton tremely sorry. I did not mean to do so. It is a thing I am Yel'Y begins to come in, but the rate of decline from that declin rarely gull ty of in the Senate. ing poir.t throughout the year is less than was the rate of the Mr. WHITE. The solicitude of the Senator· from North Car fall in the period where no futures obtained. Taking the fluctua olina I think would. be fully answered if he had listened to what tions} follo\ving them month by month since futures, you find I s3id when I produced this table.· I never thought, and I maie the amount a fraction of a cent. Taking the fluctuations during no such statement, that the price depended upon the volume of the other period, it is not infrequent that they run up into large futures; but I said that the average price of the years since the figures. I will take some of tb.em as examples. Take 1884-'85, existence of futures was largest in the proportion the quantity D ~ cember was 1.39 above September; 1854-'55, Deeember was of futures bore to tho crop. Of cours9 that statement is a math 1 cent below September. In other words, despite the incoming • · ematical statement of the proposition that the law of supply and of the crop in 188!-'85 December prices had been driven up to 1.39 demand governed as the volume of futm'es depended upon the above what cotton opened at the commencement of the season, volume of crop. The Senator looks at the statement and says whilst in 1854-'55 it had lowered in price 1 cent from the begin the statement demonstl'ates that the price depended. upon sup ning o.f the season. Of coarse all these statements refer to the ply and demand~ and yet he asked me whether futures a:ffecLd prices of a.ctual cJtton. it. That is the answer I got. Go to another year. Take 188.5-'86; October prices were .21 Mr. RANSOM. I did not understand the Senator, then. b ~low Saptember. In 1855-'S6 they we,re 1 cent below September. Mr. WHITE. In order to prevent any possible implication Take 1887-'08; D~ember was above November .35. In 1857-'53 that this calculatiOn of average embraced any very low peFiod Decembar was below N overp ber 2 cents. In other Fords, the very or very high perit.: d I have taken the pric3- or middling cotton proc~ss which is complained of here occurr~d before the future in New York from 18 0-'81 to 18.00-'91 ~ month by month and period and not since tho future period. Why was this? Be also during the period where no futures exist:xlt month by cause fntures held the market with a steady hand; and although month, from 1850-'51 to 1860-'61, and it shows, beyond a -pe-l'· there was as a rule a decline, that decline has been small com adventure of a doubt~ large and abnormal fluctuations month by pa.red with the peYsistency ol decline and the abnormal fluctua month, before futures. That is the very condition of. things tions which took place before futures came into existence. Now, · which is complained of here existed then, and it also shows if this is not a complete answer to the complaints I do not know the absence oi such a. condition of things during the future what could ba. I submit this tables to be printed as a part of period. my remarks: .Average p1-fce of middling cotton in New York for eaclt 11WRth and for eack season lBJf.i-'51 to 1860- G1 and IE*f0--'81 to 189()-'91. Months. September--·-·· __ 10. 06 !}. 33 9. 81 10. 45 )1.28 10.54 8. 61 October····-·--· __ 9. S8 9. 33 9. 51 9. 86 10. Cllli. 28 8.51 November··--·· __ 9. 4'1. 9. 17 10. 20 9. 93 10.26 9. 60 8.16 December·····--· 9.28 9.~ 10.55 9.81 10.<,!7 9. 39 7.94 January···-----·· 9. 25;- 9. 5(} 1(}. 53 9, 87" 10.59 9. 31 7.55 February ...... 9. 08 9. 5() 10. 61 10.05 11.19 9..17 7.25 March····--·····- 9. 1110. 00 10. 15 16. 18 11.41 8.99 6.87 9. 25 10. 58 9. 87 10. 63 11.70 8.94 7.11 ~;~::::::::::::: 9. 11 . 00 10. 00 11. 10 12.20 8. 90 7.32 June ... ~ .... --·- .. !), 11.16 10.16 11.08 12.14 8.51 7.58 July -···········-· 9. 50110. 58 10.. 55 11. 23 12.11 8. 25 August·····-····· 9. 40 9. 85 u. 02 11. 39 11.81 8.10 Average for sea- son ..... • ---···-- 12. 14 9. 50 u. re 10. 97 10.39 10.30 13.51 12.23 12. oo 11. oo 12. oo u. 7~ 12.25 11.50 u. oo 10. ro! 9. 50 10. 31t 10. 37! 10. 62! H. 50 9. 43i 7. 69 *Nominal. 188!-'85, December 1.3'J cents above September; 1854-'55, December 1 cent below September; 1885-'86, October .20 cent below September; 1855--'56, October 1 cent below September; 1887-'88, December above November ..35 cent~ li57-'58, December below November 2 cents. But there is other overwhelming evidence of the advantage These figures show that on November 25, 1844, cotton in Liv which has· resulted from future-delivery transactions. I affirm erpool was3a- pence. The freight was three-eighths pence. The that the certain effect of futures has been to ralieve the Ameri Liverpool price~ freight paid: was 3-! pence, the equal in Ameri can producer from the grasp of the British spinner; has been to de can moneyof7-{G cents. The NewYork prieewas5-fscents,leav crease the shipping margin between the New York and Liverpool ing a shipping margin of H cents. Now, go to February, 1848.; markets, thus, to that extent, assisting the producer. I hold in the shipping margin is H cents; in April, 1848, it is 2t cents. my hand a comparative statement as to the values of middling Thes3 facts show that there existed between the Liverpool pries and upland cotton in Liverpool and New York at the times of of co~n at that time and the price of cotton here th!s larg&· the lowest prices in New York, in 1844, 1845, 1848, and the low margrn. est price in 1892-making allowance for the difference in freight What did that come from? It came from the fact that the charges and the equivalent for the delay in time. I submit the American prod uc.er was at the marcy of the British spinner. His table to be published in connection with my remarks; cotton came into the market. Our mills could not consume it. Comparative values of middling upland cotton in Liverpool and New York, at the Here W&3 this large surplus representing at least 70 per cent of times of lowest prices in New York in the years 1844, 1845, 1818, ana 1892, mak the C;rop ~ and the margin between America and Liverpool was ing allowance for d:i;fference in ft•ei!J)bt ~rges and an average maiL dale equiv an average of nearly 2 cents during these years. alent of thirty-five days later than l-iverpool date for the New York (late. E.:r: It may ba said, ''But you have picked out years; you have se change, 4.85. lected 18-14 and 1845 and 1848." In order to meet that criticism I have had a table prepared, showing the shipping margin be Liver- Dil'fe1·- Equal enoeor tween Liverpool and New York in 18~:85, 1885-'86, 1886-'87, as Liver- pool Alneri- New ship· Date. pool Freight. price, can York ping the period of futures down to 1890-'91, with a comparison from price. frei~ht price. 1 5± to 1 61-the noniuture period. pad. money. mar- gin. What does this comparison show? Let us s?e. The shipping margin in 185.:1:-'35 was 1.36 cents; in 1884-'85 it was 1 cent; in Pence. Penc6". Pence. Cents. Cents. Cents. 1855-'56 itwas1.70 cents, whileinl885-'86 it was .87 of a cent; in November 25, 1844 ____ .... 3~ i 3! 71~; 5is lk 1856-'57 itwasltcents against.81 ofacentin188&-'87; in1857-'58 February 7, 1B45 ...•..... 3~ i 3! 7ls 5l~r 1t it was 3.14cants against one-half of a. cent in 1887-t88; in 1858-'59 April 7, 1848 .. ·-····------4k !S5'Z 3&! 8 5. 2~ March 3, 1892 ______... 1: 3i !S6'Z 3U 7ls 'lll ~ it was 1.9'2 cents against H cents in 1888-'8!:J; in 1859_}60 it was 2.31 cents against .87 of a cent in 1889:--'90; in 1860-'61itwas U This statement is remarkable in two respects: cants against .93of a cent in 189Q-'91. The average shipping mar 1. The enormous margin required in the past by the cotton merchant to gin of the seven years 1854 to. 1861 was 1.96 cents per pound protect himself against a. decline, as compared with the present, when he can protect himself by selling for future delivery. against a!l average of .89 of a cent for the seven years 1884 to 2. The wide fluctuation in that margin, l'arloaing from 1~ cents t() 2! centa, 1 91 of the futures period. I submit the table as a part of my showing the lack of stability in values. remarks. [For table se3 next page.] It is also a. well-known fact in the cotton trade that during the years of What do these margins represent? This enormous average low prices cited cotton in the Southern ports sold for less than 4 cents per pound, while now, with the same or lower range or prices current in E.urope, difference of over a cont a pound on the shipping margin during it 1s bringing 6 cents per pound in \b~ South. the years compared, was caused by the fact that the cotton was 6572 CONGRESSIONAL RECQRD-SENATE. JULY 22, Table showing the shipping margin bet ween New York and Liverpool for middlin9 Mr. GEORGE. Do you want an answer now? cotton for each season, 1854-'55 to 186o-'61 (which is as far back as we have relt able data) and 18 4-'85 (we begin the period of comparison at 1884-'85 in order to Mr. WHITE. Certsinly; I should ba very glad to-have an avoid lit ~ .fluctuations of gold) and 189o-'91. answer. Mr. GEORGE. My answer is that the farmer can not do it Liver· Equiv· New Liver- Equiv- New and it can not be done under the form of the future contract pool alent York Ship- pool ·alent Yavo:~ Ship adopted by the Cotton Exchange of New Orleans and the Cot Season a;e~- in aver- ping Season aver- in ping ton Exchange of New York, in both of which whilst a man pur of- p;fce United a~e mar- of- ag~ United a~e mar for States Pf~~e gin. Pf~~e States Pf~~e gin. chased the contracts for middling cotton the seller may deliver season. money· season. season. money. season. him any kind of seven full grades, fourteen grades of cotton, and no manufacturer can ever supply himself under the future sys- tem as regulated in New Orleans'and New York. · Pence. Oents. Oents. Oents Pence. Oents. Oents. Cents 1884-85- 5U 11.62 10.62 1.00 1854-'55_ 11.75 10.39 1.36 Mr. WHITE. L 9t me answer the Sena~or . He evidently has 1885-'86- Sr\ 10.37 9.50 .!!7 1855-'56_ ~ 12.00 10.30 1. 70 not ~nderstood ~y pos~tion . . Let me s~ate an elementary com 1886-'!!7- 5t"s 11.12 10.31 . 81 1856-'57_ 7! 15.00 13.50 1.50 merClal transadwn: A 1s a spmner. B 1s a buyer. A, the spin 18!!7-'88 - 5/w 10. !!7 10.37 .50 1857-'58_ 7U 15.37 12.23 '3.14 1888-'89 - 5}3 11. !!7 10.62 1.25 1858-'59_ 7 14..00 12.08 1.92 ner, says to B, the buyer," I want a thousand bales of long staple 1889-'90 - 6,\ 12.37 11.50 .!!7 1859-'60_ 6}! 13.37 11.00 2.37 cotton." That is not a transaction made under the rules of any 1~'91_ Sf's 10.37 9.44 .93 1860-'6L 7i 13.75 12.00 1. 75 exchange. B; the tuyer, says ''Very well; I will deliver to you a thousand bales of long staple cotton." H ere a con tract has been Average shipping margin of the seven years 1834 to 1891 is .89 of a cent, and engendered between A, the buyer, and B , the seller, to deliver of the seven years 1854 to 1861, 1.96 cents per pound. a thousand bales of long staple cotton. The seller has not got held during- theTuture period from pressing on the market by the cotton. He has got to get it. What does the spinner do in the effect of the future-delivery system, and therefore the giut order to protect himself against loss? He has sold his goods. He produced nothing like the damaging effect that it did before knows the price he is going to have to pay for his cotton. He that period. Here was a difference in shipping margin of over immediately proceeds to sell his goods for future delivery predi a cent. Whom was it made by? Of courae it was made by the cated upon the price at which he has agreed to pay for this cot- American producer. I resume the showing. If the average ton. . price depends upon the volume of crop without r eference tofu What does the seller do? It is an ordinarycoatractunderthe tures, if the range of fluctuations during the period before fu rules of no exchange. Then that seller buyo a lot of cotton for tures was greater than in the periods of futures, if the fluctua future delivery-deliverable to him two months ahead. He tions month by month before the future period were much greater knows the price at which he has bought it and at which he has than they are in the future period, if before the future period sold. His whole object in doing this is to get a lot of cotton so there was a large shipping margin between Liverpool and thi-; ·as to make up this lot which h 9 has agreed to deliver. Covered country and that margin has diminished considerably. If these by his two contract3, one of sale and the other of purchase, he facts be true, I ask do not they absolutely confirm every propo looks about in the country, picks up the grade he has sold to the sition I have advanced and do they not justify the universal con spinner, and as fast as he does this he sells out his futures. He census of the commercial world that dealings in futures helps may make twenty or thirty future transactions before completing to maintain the price, and ther·efore helps the producer. this entire business. He could not do this without futures. How I come now to the question which my friend, the distinguished could he do it without suffering the risk of a decline? He in Senator from Mississippi [Mr. GEORGE], put to me, and that in sures himself against a decline. The spinner insures himself volves the discussion of another portion of the bill. I say this against an advance. Everybody in the transaction is insured. bill is a delusion. I say under this bill contracts for future de Mr. GEORGE. Except the planter. livery can not be practically made until commercial men devise Mr. WHITE. The planter sells and gets his money. expedients and mechanism to frustrate the law and to overcome Mr. GEORGE. He sells on futures. it, and why? The provision of the bill is that the 'planter may Mr. WHITE. And I have shown he gets a more regular and sell for future delivery either the crop he has made or the crop a better and less fluctuating price than he got before the future I· . he proposes to make. system came in. That is the answer to it. Mr. GEORGE. Not proposed, but having in process. ~Mr. President, it is one of my great objections to this bill that Mr. WHITE. Well, that does not change the logical propo whilst it holds out a delusive hope thattheplantercan personally sition. I did not intend to state it with inaccuracy. I do not dispose of his cottDn by futures he practically can not by the re think! that affects the situation. Let us see how the future busi strictions·crea ted by this bill. Thew hole cotton country is chang ness is conduc~ed. In the first place, the question which the ing its form. Cotton used to be made in large fields, with one Senator from South Carolina [Mr. BUTLER] asked me is perfectly owner and class labor. Now it is getting subdivided, and small true. A large part of the cotton which came early to market had holdings are coming in. - · probably been already sold before it got there. Sold how? Sold I have here a statement taken from the preceding census-! under the future system. The result of the future system has could not get it from the last-showing that two-fifths of the been to break up ~reat buyers, and now all over the Southern farms in the Southern country are now small holdinga and country everywhere, in every county, wherever cotton can be the system is increasing. Take my own State. We have an sold there is found a cotton '!Juyer. A buyer for whom? A buyer alluvial country with large planters and we have a hill country for himself. The telegraph goes everywhere. The buyer is with small planters making a small number of bales each. ·Any communicating with spinners. The spinners do not buy average body who is familiar with cotton coming to the New Orleans lots of cotton. They buy particular kinds of cotton. m~rket knows that in one invoice there will be twenty, thirty, There is no farmer who can sell a particular kind of cotton. fortf, and fifty marks of cotton, all shipJ?ed by one, but belonging A crop of cotton is diversified· and composed of divers grades. to different people. Small planters sh1p 1 and 2 bales at a time. The spinner wants a certain kind of cotton. The buyer tele The provisions of this bill allowing the sale of f~tures by the graphs him, "I will deliver you such a grade of cotton," say a planter strikes a blow at the small farmer in the hills of mv thousand bales or 500 bales. He has not got it. There is not State, because whilst it gives them the privilege to sell futures one planter who could give it to him. He sells it on the faith under the laws of trade, they will not be able to avail themselves of his credit and faith in his ability tol obtain the grades re of it, whilst the man who makes a large crop and has a large as quired. The spinner believes in him; he knows him. That sortment of cotton will :find himself a favored person as com man, in order to protect himself from loss, the moment the spin pared with the small cotton producer. I stand for the small cot ner says he accepts, telegraphs to a market and buys futures as a ton producer; I stand for the farmer in my State who can not hedge against h1s sale to the spinner. Cotton as sold forfutures . avail himself of the provisions of this bill because he do3s not does not cover a particular grade, but an average lot of cotton. make a lot of cotton which he could sell to advantage. The ef All that is below a certain grade is not admitted, and no lot of fect of this bill will be to allow the man only who has a large cotton is of a uniform grade. The moment he buys actual cot amount of cotton to sell it under the bill. ton he picks out of that lot of cotton the bales which corre Mr. President, the figures are so clear to my mind that I have spond to what he has sold the spinner and dispos3s of futures to searched them in vain for an answer. I think they are an abso that extent. If compelled to buy another lot in order to com lute demonstration of the truth of the proposition which I hold, plete his sale to the spinner he sells more of his futures and so he and until the figures are answered discussion of the theory of the goes on and goes on until he has made up his lotto deliver to the situation is without avail. I say, with these figures staring me spinner's order and also disposes of his futures. I ask the Sena in the face, I dare not vote for this bill. The cotton crop from tor from Mississippi [Mr. GEORGE] where is the farmer who can the Southern country is now coming in. I saw in the Financial do that? Where is the crop of the farmer that is going to sup Ch!>onicle the other day a statement that there are nearly a mil ply that want and carry out such a transaction, which is a typi lio'!l bales on the Continent. There are fifteen hundred thousand cal representation of the contract by which the producer·s cot bales of cotton in Li>Terpool, and considerable spot cottDn in this ton passes to the consumer. country, much probably held under future contracts . and th~ 1892. CONGRESSIONAL RECORD-SENATE. 6573 stretched over to the next year. The same day my attention being q~te as great as the other, so that the influence exerted by " short selling" 1s little or nothing. was called by a newspaper to the fact of the arrival of the first . The great law of supply and demand regulates values or everything, and bale of the new crop in New Orleans. IS no more to be resisted than the tides of the ocean. A short seller in mak· I do not desire to prophesy e'Vil as to the future. I know that ing his engag~ments w~ll either derive profit or suffer loss as the uJ.timate facts prove him to be right or wrong. It there is more of any article than no act of any legislative body can break up a great commercial the world needs for the time being, the price will decline. I! there is less than system and render it nugatory. The laws of the world, the laws the world need.s, .the price will advance, and no legislation under heaven of commerce are higher and stronger than any legislative system, will prevent this mexorable law from operating whether a. man sells what and they adapt themselves with marvelous rapidity to any wrong ~~ ~g~~ not possess in the hope ot securing it at a later pariod at a less price restrictions which may be put upon them. Yet the process of This being so, to abolish the system would be of no advantage to those who adaptation is one of pain, and one of travail, and one of labor. falsely imagine that it might be, but on the contrary, who tend to leave them Pass this bill, strike down this system in the presence of a large at the mercy or buyer:> for actual consumption only, and at a time when their stocks ~nd supplies are the greatest. The further effect would be, that amount of spot cotton now in stock and, with a new crop coming, fiuct~ations m the value o:f all these articles would be much more violent my judgment is that this bill will cause confusion. By the dis than IS now the case, which assertion finds corroboration in the statistics of arrangement and the turmoil which it will probably make in the years when th~ system of trading !or future delivery was not in exist'3nce. At that t~~. 1t was no unusual thing for cotton to fluctuate 10 cents per commercial methods of the whole world, the ioss to the people pound Within a crop year, wherea,s now it rarely exceeds 2 or 3 cents per of the cotton States will likely not be less than fifty to sixty mil pound. There might be some force in an argument that a small portion ot the com lion dollars for the ensuing year. munity were engaged in a business that resulted in severe damage to another Suppose we dopass the bill and strike the present business and by far the larger portion ot the community, if it were true. But it is not methods down, what good isitgoingto do? Is there not a cotton true. Any reasonable man must concede that supply and demand regulate exchange where futures are dealt in at Liverpool? Are they not l;\~~s:in~~~~!r~dividual efl'ort against this great law means destruction on the continent of Europe? Did not just a few days ago a gen . It would seem almost unne NEW ORLEANS COTTON EXCHANGE. tations of the New Orleans Cotton Exchange existing on the sixth. day pre- vious to the day on which the deltvery is due. _ Protest of the New Orleans Cotton Exchange against the passageof the Either party to have the right to call for a margin as the variations or the Washburn bilL market for like deliveries may warrant, and which margin shall be kept To the honorable·tlte Senate of tke United Slate8 of .Ame-rica: good. The New Orleans Cotton Exchange, a corporation established in the year This contract is made in view of, and in all respects subject to the rules 1871 in the city of New Orleans un1ier the laws of the State of Louis1a.na, and conditions established by the New Orleans Cotton Exchange. throu~h its committee, respectfully protests against the passage o! Senate Respectfully, b111 685, a. bill defining "options" and u futures " and imposing s:peclal tax on dealers therein, and for other purposes. Per • -.--. This exchange has a membership or over 300, and is composed of commis It Will be seen from the n.bove that actual quantities, actual descriptions. sion merchants who sell cotton for planters, of exporters who buy cottonlfor and actual prices are provided for; also the dates at which the deliveries spinners and merchants in Europe, ot merchants why buy cotton tor spin shall take place, and nothing is contained bearing the slightest reference to ners in the United States, or bankers through whom all bills of exchange any settlement of difrerences, or to any wagering feature. In the event of drawn against cotton are ne-gotiated, o! ship agents who represent the great the failure o:r any member to fu.lftll his contracts at maturity, his connection fieet of steamers and sailing vessels by which the cotton is carried abroad with the organization would at once be at an end. The committee is of the and to domestic ports, of inSUl!'anee agents who arrange the insurance on the opinion that the foregoing clearly demonstrates that the contracts dealt in bulk of the cotton seeking a market through this port, ot cotton brokers, in the New Orleans Cotton Exchange are legitimate; that they are untainted expert judges of the raw material, who buy the cotton from representattves with any element ofwager..ng, and the pa.rties thereto enter into same with of the planters-tor the merchants who ship to Europe and to American spin no mental reservation or understanding that the terms of the same are not ners; of future brokers who buy and sell contracts for forward delivery for to be carried out in good faith in every particular. . account of members o:f the exchange and for merchants and spinners in The committee is aware that a belie! obtains in many qun.rters that deal· Europe and the United States; indeed, of a.ll who are in any wa.y connected ingsin contracts for future delivery depreciate the value or the article dealt in, with the va.st movement of cotton through this and other ports in this coun and that, therefore, they should be, as far as possible, suppressed. So far as try. And it may be well to state that the exchange, as a. corporation, never cott-on is t'Oncerned, and to this article alon.e is· this argument addressed, has an interest in any cotton sold either fo:r immediate or future delivery, we are ot the opinion that so far from depreciating value, the existence o! and that many of its members never deal in contracts for forward delivery, contracts for future delivery serve rather as a restraint to serious declines their particular branch of the cotton business not necessitating such trans in times of depression. actions. The system of dealing in contracts for the-future delivery of cotton was This committee submits that there is a vast di1lerence between the transac inaugurated in New York in 1871, in New Orleans in 1879, and in Liverpool tions designated in the bill as "OJ)tions" and those- designated as "futures." somewhere about the same time. If stability o! value is a.-desideratum, we The former are commonly known as " puts " and " calls," and are nothing claim that it has been more nearly obtained under the modei'll than under more or less than wagers. Such transacrJons are not now, nor have they the older method. It is beyond question that since the inauguration ot this ever been, recognized by the New Orlea.ns Cotton Exchange, and, to the ex system the fiuctuations in the price o! cotton have been less violent than tent that the bill imposes a license on dealers in "options," as described they were under the old r6glme; and in support of this statement reference above, and a tax on transactions therein, this exchange enters no objection. is invited to the annexed table, which shows the price of middling cotton in "Futures,,., as defined in the bill, refer to transactions which are known the Liverpool marliet since the season of 1842--'43. to the New Orleans Cotton Exchange as" contracts for forward delivery." The period embraced covers fully the fiuctuati•ms under both systems. As Th~se contract , as dealt in on the fionr of the said exchange, contain not h· prices in America were largely infinenced from the breaking out of the war ing that partakes o.f the na-ture of a wager, nor do they ·contain any pro down to the resumption of specie payments in 1879 by the finctua.tions in the vision for the settlemen1l of d:U!erences as between the contracting parties, price o:r gold, the Liverpool price in pence sterling is a truer index ot the according to fiuctuations in the market at any time between the da.te of the actual value of cotton at any given date than would be the prices in America contract and its maturity. _ before gold and greenbacks ca.me to a level, it being remembered that cotton On the contrary, the rules of the Exchange provide tha-t "all contracts for was always sold in America from 1862 to 1879 for greenbacks, and not tor the future delivery or cotton shall be binding upon members and ot full force gold. and e1l'ect until the quantity and quali"ties o! cotton specified in such con· Price of middli.n.g Orleans in Liverpool, in pence ste1·li.ng. tracts sha.ll have been delivered, a.nd the prlc& s~eift.ea in said contracts shall have been paid. Nol.' shall :my contract be entered into with any stipu High- Low~ High- Low- IDgh- LOW· lation or understanding between parties, at the- time of making such con Season. est. est. Season. est. est. Season. est. est. tract as specified in rule 1, that the terms, of said contract are not to ba fnl ------filled, and the cotton received and delivered in accordance with said rule." ------The foregoing quotation is an extract from rule Z1 of the rules of this Ex~ 1842-'43 ·- 5.12 4.00 1859-'60. 7.37 5.75 1876-'77- 7.31 6.00 change, and the rule 1 therein referred to, provides the form of contract 1843-'44 -· 5.87 ... 50 1860-'61. 10.12 6.50 1877-'78. 6.87 6.00 under which all sales for forwarded deliveyY are made. • For greater clear 1844-'45 .. 4. 3'7 4.00 1861-'62. 25.25 10.12 1878-'79. 7.31 5.25 ness the form ot contract is here inserted; 1845-'46 .• 5.25 4.12 1862-'63. ?:1.75 21.00 1879-'80. 7.62 6.75 184&-'47 -· 7.35 5.75 1863-'64. 31.75 26.50 1880-'81. 7.43 5.81 FORM OF CONTRACT. 1847-'48 .• 5.75 3.62 1864-'65. Z7.50 13.50 1881-'82. 7. 3'7 6.43 RULE 1. No contract for the future delivery of cotton shall be noticed in 1848-'49 -· 5-.50 3.37 1865-'65. 25.00 12.25 1882-'83. 7.12 5.56 any public reJ)Ort or printed circular, or in any manner recognized, ac 1849-'50 -- 7.62 6.12 1865-'67- 15.75 9.00 1883-'84. 6.56 5.87 knowledged, or enforced by the Exchange, or any committee o:r omcer 1800-'51 .. 7.75 4.6'3 1867-'68- 12.87 7.37 -188-!-'85- 6.25 5.56 thereof, unless both parties.thereto shall be full members of the New Orleans 1851-'52 .. 5.87 4.62 1868-'69. 14.00 10.50 1.885-'86. 5.62 4.75 Cotton Exchange; it being -provided, however, that where contracts are is 1852-'53' -- 6.25 5.43 1869-'70- 12.62 7.75 1886-'87- 6.00 5.19 sued by firms composed or two or more partners, at least two of said part 1853-'54 •. 6.00 5.06 1870-'71. 9'. 75 7.50 1887-'88. 6.00 5.18 ners shall be full members of said Exchange, 1854--'55 -· 6.62 5.00 1871-'72. 11.81 9.62 1888-'89- 6.81 5.43 The contract shall be in. the following !orm, to wit~ 1855-'50 -- 6. 3'7 5.50 1872-'73. 10.50 9.00 1889-'90. 6.75 5.62 (Jontrad .A. 1856-'57 -- 9.25 6.37 1873-'74. 9.37 8.18 1890-'91. 5.81 4.50 OTFICE OF----, 1857-'58 .• 9.25 6.31 1874-'75- 8.37 7.18 New Orleam,---, 1.88-. 1858-'59 -- 7.38 6.75 1875-'76- 7. 3'7 6.00 Bought forM-----, of M-----, 50,000 pounds in about one hundred square bales ootton, growth ot the United States, deliverable from A glance at the above table w1ll show that the fluctuations in ante bellum press or presses 1n the port of New Orleans, "Qetween the first and last days times, when the system for selling for forward delivery had not been 1nst1· of--next inclusive. The delivery within such time to be ali seller's op tuted, and when, in fact, it was unknown, were much more violent than since tion, in lots not less th.an 50 baleg upon five days' notice to buyers. 1871, when this system was first inaugurated. It may not, however, be out The cotton to be of any grade from good ordinary to fair, inclusive, and' of place to call attention to the prices and fiuctuations which obtained in the it stained, not below low middling, at price of --cents (-) per pound for New Orleans cotton market from the season of 1842-'43 to that of ~'51, as middling, with additions or deductions for other grades, a.ceordingto the quo· exhibited in the following table: Price of middling cotton, in cents per p(JUM, in New Orleans during seasom 1842-'43 to 1850-'51, both inclarive. Close of week ending'- e184.2-'43. 1843--'44. 1844-'45. 1.84-5-'46. 184&-'47. 1847-'48. 1848-'49. 1849-'50. lBro--'51. ····------·---·- 12! to 121 ~ ~t ~ }~ ~ pli 10 13~ 13 91 1 .. 1 !:13! 13 to1~~ l3k !!~13 10 1 13 1 10.~ 1 12i 131 lOt 1~ 12, 12 10 }I 12; 12 ln 10 ~~ 13 10 1o-~ 1 10 nj 12 12131 11 11 12i 12 11!11 11!11 12lli 1211 11 11 11 11 11 llt 10} 11 iM g~ ~t ~g~ lOl 11 ~Jf 10 lOk 10i 11>} 11 10} lOt 10 10 10) 11 101 11 1892. CONGRESSIONAL REOORD-SENATE. 6575 Prices of middling cotton., in cents per pound, in New Orleans during seasons 1842-'43 to 185l>-'51, both inclusive. -Continued. It will be seen from the above that th.etluctuations dtmingthepertodmen side sinks below the value in Europe, it will at once be taken up for export. tioned were rapid and violent, and it will be borne in mind that these fluctu and the equilibrium be reestablished. ations and the prices at which cotton sold were not influenced by the opera Of recent years the cust-om has grown up among spinners of cotton yarn tions of future markets, as none existed at that time. Again. it will be ob and rru.t.nutacturers of cott-on cloth to sell thEJir product ahead, thus secur served that cotton sold as low as ~- in Li-verpool in 1848-'49, and as low ing a price for the product of their spindles and looms. Inasmuch as the as 4i cents in New Orleans in 1844-'45; at times when the crops not only in margin of profit in converting the raw matertal into the manuta.ctured ar the United States but throughout the cotton-producing world were insignifi ticle is at best l>ut narrow, the consumers of raw cotton aim to cover their cant as compared with thegiganticoutputofthepresentera. Prices as low sales of yarn and cloth 1>y a simultaneous purchase of the cotton that will as those just quoted ha-ve :never been seen since. Nevertheless, with cotton be needed in their work. at 4£ cents for middling in New Orleans., the South went on increasing the Practically, this can only be accom.plished by contraeting for the forward acreage devoted to cotton, and the crops correspondingly. delivery of needed supplies; and this by reason of the fact that the capital of When we consider the :enormous crop of the preceding season, one Whieh mostconceTils1stied up in the plant, in the greater or less stock of "'Oods choked up all outlets, it. is a matter of surprise that the price has not fallen that has alwa.ys to be carried, and in the credits that have to be exteD.ded to lower than it has. Indeed. Why not to the low prices, as shown abOve, when their customers for goods sold on time. It is quite out of the question that the crops were comparatively trifling, DUring the month of October of the beyond a few of the large corporations in the United States, France, and oc present season fully one'-(}Ua.rter of the entire crop, say 2,500,000 bales, worth casionally England and Germany, any very large stock of cott-on can be $100,000,000, left producers' hands, and it is quite evident that if thiS vast bought and paid for in cash; hence without marketS for forward delivery amount of cot.ton had been forced to find as purchasers thespinn6l'S in Europe these purchases could not be made. and America alone, without relief from the merchants who operate through It has been suggested that the planter might sell directly to the SJJinner. forward deliveries, the price at which it would have been. sold would have but,apartfromtheimpractica.bilityofbringingthevastnumberofproducers ·l>rought disaster to the entire South. into direct communication with the comparatively sn1all number of oon As a matter of tact, middling brought in New Orleans an average of over: sumers, we are brought face to !a.ce with the-insuperable obstacle that spin 8 cents durmgthe October in question, while during the first halt of Janu ners require spec:tllc qualities of cotton, and these can not be bought direct ary, with probably only 25 per cent of the crop left to come to market, the from planters. A quality that might suit one mill would be utterly useless price has ruled under 7 cents. As it was, the merchant and speculator who in another. had sold short stood in the breach and saved the country from ruin, as they No planter could safely undertake to sell, for forward delivery, a given came in as buyers to cover the sales they had made during the spring and grade or a given length and strength of fiber, or staple, as it is technically summer months. We think that the only solution of the question is that kjlown to the trade, because in the event of a wet and stormy gathering the sustaining influence of the sales for forward delivery prevented a more season, the grade for his cotton would be very much lower than would be serious decline than actually took place. the case should the picking season be dry and generally propitious; while Not to burden this document with an excess of figures, it may be summed shonld the growing period be one of drought~ the fibeJ: would turn out to up briefiytha.t 1n the seventeen years preceding the war the average highest be much inferior to what it would be should the plant have reached maturity and lowest prtces in pence in Li-verpool were 6.65 and !>.10, as against 7.16 after having enjoyed that amount or moisture necessary to its proper de and 6, respectively, in the past nineteen years, since 1872-'73, when futures velopment. Thus quality and staple can not be foreseen. , first came into full operation. At all times prices in the United States sym Moreover, in estimating the quantity that a planter can sell for toward de phathized closely with those current in Li-verpool, and a full set of Ameri livery, we must consider, in addition to all the various inftuences that affect can :fignres are:omitted,l>ecause between1872-'73 and: Jannary, 1879 gold was the early growth o! the crop, theetrect of the ravages of the worms, and ot at a premium in this country; and as cotton was sold :in greenbacks, the early frosts in the latter stages, as a crop that promised a given result in price was subject to the tluctuations in the premium on gold; hence the July or August, might easily be curtailed 25 per cent by unfavorable condi quotations ot cotton were influenced by an outside element. Enough, how tions before the end of the picking. Thus the planter cannot closely calcu ever, is shown to demonstrate that the range of prices were higher in the late how much he can sell for forward delivery. Viewing, then, th.e questions lat.ter than the former period, and that the variations between the highest of quality, staple, and quantity, not to speak of the impossibility of bring and lowest points were less; hence in neither respect can the operations of ing producer and coiJ.Sumer directly together, it seems quite clear that the the future market have worked any injury to the producer. idea that the spinner can contract for forward delivery directly with the It will be observed that from and after 1849-'50 prices showed a. steadily planter must be abandoned. advancing tendency 1n Liverpool, and a like condition obtainedin the United It is the opinion of this committee that between the month of May and the States. At the same time the crops were becoming largeryea:r by year, that month of August, both inclusive, European consumers contract with mer of 1859-'60, the year preceding the breaking out of the war reaching the then chants who make a business of handling the cotton crop for the shipment enormous total of 4,861,000 bales, as against 2.369,000 bales in 1842-'43, the first during the autumn. and early winter months, of 1,500,000 bales, or, say, about year, referred to in the above tables, while prices had advanced 2! pence, or, 20 per cent of the crop. Dnr:ingthe same pertod the mills of the United States roughly speaking, 50 per cent. It is believed by many that this advance in enter into similar contracts, and for important quantities. prices was largely assisted by the increase in the supply of meta1lic money, The merchants who make these contracts for forward shipment or deliv due to the discovery of gold in California and Australia at about that time. ery enter into them with no view of speculation. On th& contrary, in order On the other hand, the present tendency to shrink m the value of cotton is to ell:m1nate all element of speculation from the transaction they purchase attributed to the lessened amount of legal-tender metallic money available, as nearly simultaneously a3 possible a corresponding quantity :tn the for due to the demonetization of sil>er. Howe>er, as this is a question on which ward delivery markets in New Orleans or New York. It may be objected very dec-ided opinioiJ.S, pro and con, are held by leading business men through that the contracts dealt in do not specify any given grade. This is admitted, out this collJitry and Europe, this committee does not desire to pursue the but the experience of many years has demonstrated that there is constantly subject further merely noting the point-in passing as indicative of the opin a close sympathy between the prtoo of the actual cotton on any given day ion of many in the trade as to the reason of the present general level of values. and the price of oontracts for correspond!ing month on the same day. Attention is called to the fact that during the period or 1849-'50 to 1859-'60, So closets_the relation between the two that no merchant, however prudent. while cotton was gradually rising, the fluctuations were equally as violent hesitates to use the market for contracts as an insurance for his sales of as during the seven years' precedfng 1849-'50, or durtng the period that. has cotton of a specific quality and staple. Under the opera~ions of this bill. elapsed since dealing tn futures was first begun, say 1811-'72. merchants would be, to a great extent, debarred from entering into these This committee is of the opinion that the great determining elements·of contracts with spinners; hence, when the crop is rushed to-market in the price are supply and demand, and that price can neither be permanently autumn, the:market would ID.iSs the sustaining influence of these sales for for lowered nor advanced by dealings in contracts for forward delivery. That ward delivery, and under the pressure of heavy receipts, prices sink lower the future market is simply a great mirror reflecting the general situation than all the surrounding circumstances would justtly. trom moment to moment. It has been stated above. that while the great European markets are the Cotton is an article produced largely in excess o! the consuming power of most potent factors in determining prices, that the wants of the American the United Sta.tes, and while the demand for home consumption is an impor mlils are also an infiuence in the same direction. MoTe than this, the views of tant factor 1n.regulating price, it can not be denied that the great European planters, merchants, and others, as reflected in the markets for forward de markets·exercise the chief control in this regard. Unlike wheat and corn, livery in New Orleans and New York, have also great weight. the largest partrof the cotton crop is marketed abroad. Of wheat about 25 Should the bill in question become a law, the exchanges in New Orleans per cent 1s exported, of corn from 3 to 4 per cent, wbil~ of cotton 70 per cem and New York, as far as dealings in contracts for forward delivery are con ts sent to foreign markets; and this amount is only limited to this figure cerned, will cease to exist, and the entire business will be at once transferred because, a.fter the American mills have taken their supplies, there remains t-o the exchanges of Liverpool, Havre, and Bremen. Can it be doubted that, but 70 per cent to export. . once freed frem the restra:tning inftuence or the great markets in New Or That a greater. amount does not go- abroad is simply due to the fact that leans and New York, the endeavor of the !ore1gn exchanges will be to de we have not th.e cotton to send away. • Considering, then; the vast amount of press values at the very time that the necessities of producers force a rapid the cotton crop that is exported, the intluenee of Europe in determining !>l'ice and enormous marketing of their cotton, and tha.t, this object attain.ed, they must be at once apparent. Therefore, as Europe is the great regulator of will reverse the operation, and, to the extent of their ability, exact from con the price of cotton, this committ-ee. can no-t see how the operations of the sumers an tha.t the circumstances of trade will permit of their pay\ng? n future" markets in America can depress the price below the value plaood Apart !rom tho amount mentioued r:'".>ove as contracted for in the ea.r-ly on it ab1·oad; and for the simple reason hat, as soon as the price on this pa.rt of the season, say 1,500,000 bales, or about 20 per cent of the crop, it is 6·576 CONGRESSIONAL RECORD- SENATE. JULY 22, proper to state that, owing to the facilities of communication with Europe The system of contracts for future delivery of cotton as conducted upon offered by the cable, after the crop be~ins to move the vast bulk of it is sold the exchanges of New York and New Orleans atrords facilities for handling before it is bought. This committee IS of the opinion that fully 70 per cent the crop which can not be dispensed with. of the crop is marketed in this way, making, with the amount contracted for The passage or the bill in question or any similar measure will have the 1n the earlier part of the season, say 20 per cent, a total of 90 per cent, and e:trect or transferring to the European exchanges an immense volume or leaving but 10 per cent to be moved under the methods that obtained pre business, with the result of serious inconvenience and greatly increased cost vious to the inauguration of cable communication with Europe. to the American dealer and shipper. None of this vast amount of cotton is the property of the merchant at the It is the opinion of this exchange that while the course of prices is ulti time that he sells it, and under 'l;ne operation of the law as proposed, the en mately regulated by the great law of supply and demand, the system of con tire machinery would come to a standstill, as not only can the business not tracts for future delivery exercises a beneficial effect upon values rather stand a ta,x of 5 cents per pound as proposed, but it is 9.uestionablewhether it than the contrary and tends to steady and sustain them, inasmuch as it af would not not be destroyed by even so apparently trifiing a tax as y'6 of 1 cent fords facilities for relieving the congested conditions often attendant upon per pound. the rapid marketing of the great staple products or the country due to the When it is shown, as appears by the records of past years, that cotton pro present greatly imP.roved transportatton facilities and the necessities of the ducers market 75 per cent of their crops between September 1 and January 1, producer. Any evils which may be attendant upon the custom of dealing the possibility of the calamity likely to ensue in the coming autumn, when in contracts for future delivery are traceable to the individual, not to the the great bulk of the cotton crop is being rushed into the market, upon the system, and are much more than offset by the benefits derived therefrom by breaking down of the machinery that handles the crop, a condition which the producer and the legitimate dealer in the product. will certainly result from the enactment of the prohibitive features of this [SEA.L.] L. C. FRYE, bill, should call for the most serious consideration at the hands of Congress. E. HOLZBORN, It is quite within the range of probabllity, the sustain1ng influence of for BENJ. RHE'l'T, ward delivery sales being removed, that a level of prices may be reached Speciat Committee Mobile Cotton Exchange. during that period lower than has been witnessed for years. And .it must MOBILE, ALA., January 11, 1892. ~nl~eSt~:~;fs ~~~~e~~~~t~~!f:~f~d 75 per cent of the cotton crop of the As to speculative dealings in contract for forward delivery, it is quite plain that. immediately upon the closing of the exchanges in New Orleans GREENVILLE COTTON EXCHANGE. and New York. the business will be transferred to Liverpool, Bremen, and Havre, and, with the resulting increase in the importance of those markets, At a meeting of the Cotton Exchange or Greenville, Miss., held this 15th of their power in regulating prices will be correspondingly enhanced. It can February, 1892, it was unanimously scarcely be hoped that they will shape their operations with a view to in Resolved, That this exchange regards the Washburn bill (so called) now creasing the value ol the product of the American cotton-planter. However before the National Congress, as a menace to the best interests of the cotton desirable it may appear to the author of the bill to suppress speculation, the planter.s of this country. This exchange, although not so large as many measure will fail of its purpose, as the operations now made in America will others m the country, claims to represent more directly the interests of the simply be transferred to the European exchanges. cotton-planters than any other, a large proportion of its members being The bill professes to be a revenue measure, inasmuch as it proposes to col among the largest planters of the cotton belt. lect licenses and taxes from dealers in contracts for future delivery. But it Resolved, That we consider the method of buying and selling cotton ror will be apparent that not one cent of revenue can accrue to the Government future delivery, n ow recognized all over the world as an important part of from its enactment, from the fact that those dealers who intend to sell for ~h~ regular cotton trad~, to be a regulator and not a disturber of values, and forward delivery only that which they own at the time ofJ making the con m 1ts practical oper atwn enables the planter to obtain at all times a fair tract are not amenable to the law, and will therefore take out no license and value for his crops, as established by prospective supply and demand. pay no taxes, while on the other hand those who might contemplate selling Resolved, 'l'hat the view apparently entertained by some of the members for future delivery property not belonging to them at the time of sale would !>f the Agricultural Committee of the House or Representatives, that dealing not find it worth their while to take out a license, because under the law no m cotton for future delivery is a gambling contract is an erroneous one, buli transaction could possibly be made that could stand the tax, and, therefore, on the contrary, is in the present era or rapid communication and transit, in the absence of business, there would be neither license nor tax to be col the legitmate outcome or modern methods, and i! suppressed by legislation lected. in this country, will be vastly increased in England and Europe, to the se In conclusion, this committee expresses the opinion that the system or rious injury of planting, manufacturing, and commercial interests in this buying and selling cotton for forward delivery acts as a balance wheel to the country. trade, preventing either undue depression or inflation, and that if it is broken Resofved, That a copy of these resolutions be sent members of Congress up by the bill under discussion, or any like measure, the results will prove from the various cotton States and extensively circulated among the plant- · d.isastrous to the very people in whose behalf its enactment is sought. ers of the Mississippi. JOHN W. LABOUISSE, N. GOLDSTEIN, President. JOHN G. HAZARD, E. BOURGES, 8ecreta1"?J. C. C. CORDILL, Committee New Orleans Cotton Exchange. MEMPHIS COTTON EXCHANGE. [Copy of letter sent to members of Congress.] SAVANNAH COTTON EXCHANGE. MEMPHIS, TENN., February 12, 1892. At a meeting of the board of directors of the Savannah Cotton Exchange, DEAR Sm: At a meeting of the board or directors of the Memphis Cotton held this day, it was the unanimous sense of the board that House bill No. Exchange, held on the lOth instant, careful consideration of the Washburn, 2699, introduced by Representative HATCH of Missouri, Senate bill No. 685, Hatch, and P e1fer bills, defining "options" and "futures," now pending in introduced by Senator W .ASHBURN of Minnesota, and Senate bill No. 1268, Congress, were considered and fully discussed. The Memphis Cotton Ex introduced by Senator PEFFER of Kansas, if passed would be of very great change does no business in "options" and "futures," but the board was injury to the agricultural and commercial industries of the country by pro unanimously of the opinion that the passage of either of those bills into a hibiting the convenient and necessary method or dealing in futures, and I law would seriously damage the commercial and proaucing interests or the was directed to request our Senators and Representatives in Congress to country. vote and use their influence against the passage of said bills. In fact it is di.ffi.cult to see how, without future sales, farmers and manu Very respectfully, · facturers would be able to move or dispose of their large products in any J. F. MINIS, P1·esident. reasonable time, being left alone to the slow process of present demand and J.P. MERRffiEW, consumption. The dealing in "options " and "futures," like nearly every Secretary and S uperintendent. other business, is not entirely free !rom objections or evils, but the benefits SAVANNAH, GA., Febl•ttary 18, 1892. derived from the practice enabling the producer to promptly market his g~~~~~a~~~~~ereby meet his obligations on time, outweigh all opposing HOUSTON COTTON EXCHANGE AND BOARD OF TRADE, 'fhe above views almost unanimously reflect the opinion of the Memphis Houston, Tex., December 30, 1891. Cotton Exchange, and you are earnestly requested to lend your opposition To the Senate and House of R ep1·esentatives £n Gon(J1·ess assembled: to all bills looking to the prevention of dealing in "futures" and "options," if, after an examination of the question, you can consistently do so. The Houston Cotton Exchange and Board of Trade have had their atten Yours very truly, tion called to a bill introduced at this session or the United States Congress H. M. NEELY, in the Senate thereof and known as the Washburn bill, for preventing deal- President Memphis Cotton Exchange. il;lgs in options. · Without discussing the matter as to whether prices are influenced favora bly or otherwise, but expressing the opinion that the influence exerted by dealing in futures, is a benefit to prices generally, we desire to say, that a very large amount or business is now conducted where futures play an im MEMORIAL OF THE MILWAUKEE CH.A.MBER OF COMMERCE REMONSTRATING portant part in protecting legitimate commerce, and enabling merchants to .AGAINST THE PASSAGE OF SENATE BILLS 171>7 AND 1.268, ~~"TJ) H. R. BILL 2699. sell the actual product for future shipments, which is all for tbe convenience To the honorable the Senate and House of Rep1·esentatives of manufacturers, which as prudent business men they would probably not of the United States in Gon(J1·ess assembled: be willing to do but for their ability to hedge themselves with futut:e con The Chamber of Commerce of the city of Milwaukee respectfully and tracts for cotton.' earnestly remonstrates against the passage of the bill introduced in t he Should the Washburn bill become a law, it will entirelydoawaywithsuch Senate by Senator W .ASHBURN, known as Senate bill1757; the bill intro dealings in the United St ates, and the cpnsequence will be that the entire duced into the House of Representatives by Representative HATCH, of Mis volume or business of this description, which has grown to very large pro -souri, known as H. R. 269:1, and also the bill introduced in the Senate by portions, will be transferred from this country to England, France, and Senator PEFFER, known as Senate bill 1268, the enactment of any one of Germany, whereby a large amount of money will be paid to those countlies which into law would result in the suppression of trading in this country for performing the services which we can have done more promptly, satis in wllstt is known as contracts for the future delivery of wheat, corn, oats, factorily, and cheaply at home. This exchange, therefore, desires most re- rye, barley, cotton, coffee, and all other farm products, as well as pork, lard, spectfully to protest against the passage of the Washburn bill. _ and other hog products. H. W. GARROW, President. The proposed legislation applies to two distinctly different kinds of trad ing, designated in said bills respectively as " options " and ' futures." The first named is a transaction not regarded as commercial in its character, and THE MOBILE COTTON EXCHANGE. is not recognized by the rules or the Champer of Commerce of Milwaukee, nor To Senator G. F. HOAR, is it permitted to be practiced in its exchange rooms. We deprecate such Chairman Judiciary Committee, United Slates Senate: " ovtions" as unmercantile, pernicious in their influence, and d~serv1ng to The Mobile Cotton Exchange desires t o protest against the passage of the be restrained by all the powers of business associations, as well as by the bill introduced in the United States Senate on December 14, 1891, and known authority of law. as the Washburn bill, for prohibiting dealings in contracts for future de The second-named class of trading, designated as " futures," refers to all livery of cotton, grain, etc. contracts or agreements to sell and deliver any grain, provisions, etc., In the opinion of this exchange, the passage of said bill will seriously in when, at the time of making such contract, the party so contracting (or his terfere with the marketing and financing ot the American cotton crop. principal) is not the owner of the articles so contracted to be sold and deliv- 1892. CONGRESSIONAL RECORD-SENATE. 6577 ered. When such ownership c~n not be shown to exist, licenses and taxes wholesaler, who has anticipated these demands by contracting months be ~e proposed, such as would practically prohibit the making ot contracts fore for the products of the mills, the factories, and the tarms. The mill for produce for future delivery. owners, to fill their contracts with the wholesalers and jobbers, contra<'t for Contracts of this kind, as made by the members of this chamber, and of the future delivery ot the cotton or wool that is to enter into the manufac similar bodies, constitute a specific and binding agreement to make actual ture of the cloth. The material may be nowhere in sight, and the parties delivery of the property so contracted, and to receive and pay for the same, agreeing to deliver it may have to buy it of its thousandth owner instead of and by means of such contracts the farmer, the country dealer, the shipper, its first. and the exporter are allturnished with very important and necessary aid in The valid~ty of the contract is in no wise affected by the number ot times their commercial dealings. the property may have been transferred in going from the producer to the We believe that even the assumed owners of property, or the prospective consumer, nor should it. The right of ownership passes the same as it would producers, who are exempted from the proposed taxes on sales of" futures," in real estate or any other species of property. A gold coin loses nothing of would not be benefited by such exemption, by reason or the impossibility of its value though it passes through a million hands and cancels a million determining, at the time of so contracting, whether the articles, either ~elp debts in its travels. in the country or in course of production, are or the kind or grade proVldep The clerk at his desk and the workman at his bench are solicited in May for in the contract made. The exempting from the operation of the proposep and June tocontractfornextwinter's supplies of coal, deliverable any month laws or a certain class of persons is of itself pernicious, because it is class that may be named. Upon these contracts the wholesaler gives his orders legislation, which is against public interest. No man, be he producer or to the mine-owners, who in turn are enabled to intelligently anticipate the otherwise, should be exempted from the provisions of a!ly laws. - output of their mines and make arrangements accordingly. Contracts for "futures" are primarily intended to facilitate the legitimate Our paper currency represents a nation's contract to redeem the same in movements of commerce, and, by furnishing a means ot protection to the coin on demand, "buyer's option." producers and handlers of produce from the risks arising from constantly The idea, scheme, and theory of contracting for future performance per fluctuating prices, to lessen the margin required between the producer and meates our very lives. It is the blood and bone and basis of our national, the consumer. It is unquestionably true that a vast amount of purely spec pnrsonal, commercial, and financial existence. Attempted curtailment of ulative trading is carried on in connection with the business done by actual the privilege of entering into legitimate contracts for future performance dealers in produce, and that this speculative trading is sometimes produc would be a dangerous invasion of the domain of personal and private rights tive of damage to general_business and is disastrous and demoralizing to in and liberties. dividuals. 'l'he Washburn and Hatch bills contemplate an attack upon one line of It it were possible to distinguish between the trading in products by those business, singling it out from everything else, and are in that respect vicious who are purely speculators and those who buy and sell as a necessary and class or special legislation. Designedostensiblyforthesuppression of gam proper protection to their business interests, then the question of.legisla bling in the products or the soil, they would, if allowed to become a law, ex tive interference m.i~ht present a di.trerent problem. But no practical sug tinguish an established system, without which producers would be abso p:estion of such possible distinction has yet been made, and we can not think lutely at the mercy of combinations of capital formed to prey upon their that the (practical) prohibition or all this class of business would be wise helplessness. • legislat-ion, or fair to the interests of those engaged in the productisn and Gambling in farm products is an unmitigated evil. and there is not a legit :tandling of farm products. imate exchange in the country that would not lend its aid and countenance We recognize the evils coimected with excessive speculation, and any to the enactment and enforcement of laws for its extinction. If the Wash proper effort to mitigate those evils should be welcomed by all good citizens, burn and Hatch bills could accomplish that result and stop at that, this but such efforts should not hamper ordestroythefreedom of action required memorial would be in favor of the measure and not against it. by those who undertake the important and hazardous business of raising In simple truth, however, the extent to which nroduce gambling is can·ied and marketing the vast products of the counuy. Before the passage of any on iJi the legitimate exchanges of the country is fmm.ensely exaggerated. It such legislation, there should be the most thorough investigation into the bears about the same relation to the legitimate commerce and speculation of busine5s transactions likely to be affected by the operation or the proposed the country that the froth and foam or Niagara do to the mighty volume or laws. water underneath. It is the bubble and fuss and fury, the froth and foam . The measures are of such wide scope and vital importance that we depre upon the surface of trade and commerce that offends-not trade and com cate hasty legislation thereon, and we respectfully suggest that it would be merce itself. eminently proper for Congress to appoint a special committee to be charged Gambling in produce-gambling pure and simple, is carried on in the with the duty of inquiring into the conditions and workings of the trad bllC}ret-shops. 'l'his torm of gambling is and has long been a truittul source ing in farm products, which committee should hold meetings in the princi of""agricultural depression, and a rigorous Federal bucket-shop law, vigor pal commercial centers and agricultural sections of the country, coming in ously enforced, might go far toward accomplishing the end that is sought. contact with the best business men and producers, and thus acquire that The laying of wagers in these thousands of bucket-shops on the quotations full knowledge ot all the points at issue which ,alone can fit them to recom· of produce as they are made in the great marts of trade creates a powerful mend what legislation, 11 any, is necessary or desirable for the interests of concentrated interest for the depression of values. The extent to which this the whole people. bucket-shop influence is responsible tor the agricultural depression that is E. P. BACON, President. complained of is not, we fear, fully appreciated. The evil is ot sufficient im W. J. LANGSON, Secretanj. portance fn our opinion to merit the attention of Congress. It has become a MILWAUKEE, WIS., Feb1•uary 13,1892. national curse. This board does not apprehend that your honorable body confounds bucket-shops with legitimate exchanges. Such a thought would be an insult to your intelligence. Boards of trade are a necessity of modern commerce. They enable the BOARD OF TRADE OF THE CITY OF CIDCAGO. producers to find a market at any t;ime for their surplus grain, cattle, hogs, cotto!l, and other crops, at far better average prices than could otherwise be To the Congress of the United States. Memorial of the Board of Trade ot obtained. America raises a surplus of almost every kmd ot farm product, the City of Chicago against the passltge of Senate bill1757 and House bill and tllis surplus, must be sold to domestic and toreign consumers, else con 2699, known as the Washburn and Hatch bills, respectively. gestion results, and the country suffers from evils of overproduction. It is through the medium of boards of trade that the capital is supplied To the honorable the Senate ana House of Representatives of the for the carrying 01 the country's surplus product-s during the long and weari Fifty-second Congress of the United States of ..4.merica: some period that must intervene from the time it leaves the possession of GENTLEMEN: The Board ot Trade ot the City ot Chicago respectfully pro the needy producer until it is taken by the tardy and reluctant consumer. tests against the passage of House bill2699, introduced in the House ot Rep The farmers are not, as a class, able to turnish the capital needed to carry resentatives by Mr. HATCH, and Senate bill1757, introduced in the Senate by the surplus ottheircrops. They are, as a general thing, obliged by the neces Senator WASHBURN, and described as "A bill defining 'options' and 'fu sities of the situation to realize on their crops as soon as saved. tures' and imposing special taxes on dealers therein, and tor other purposes.'' This makes them urgent sellers during the few months immediately fol The objections ure:ed against the passa~e of the bills are set forth in the fol lowing harvest, and were it not for the helping hand ot speculative and in lowing memoria.l,-to which your attentiOn is respectfully directed: vested capital the highways of commerce would be glutted with an unsala The passage ot this bill and its enforcement"as a law would produce a com ble plethora. The ultimate consumers to whom our surplus must be sold, JOercial convulsion amounting to a national ca~amity. U sold at all, would supply their requirements only as necessity demanded, It would be a vital attack upon the very foundation principles of modern and tathomless depression in values would ensue. The American farmer business methods and usages. would be in a state as hopeless asthem:m "treading water "-no bottom and It would be hostile to the commercial genius and spirit of the age. no rest. It. could not stop, as its advocates may vainly hope, at the suppre:ssion ot Enterprise and capital have created chains of warehouses extending from gambling in tarm products, but it would wipe out of existence every board the remote West and South to the seashore. Interior dealers obtain ad of trade, chamber or commerce, and cotton exchange in the country, and vances trom the commission merchants at commercial centers, and buy and destroy a vast system for the economical handling or the agricultural prod store the surplus of the country. This surplus is sold tor future delivery at ucts or the nation, a system which is in entire harmony ·with the progress the larger markets, or as they are style1 " BoJ.rds ot Trade," "Chambers of of our civilization, and which i'3 a part ot that civilzation. Commerce," and "Produce Exchanges." It would disastrously disturb transportation interests of every kind. It is immaterial to the producer or to the country dealer whether his wares · And it would in many ways, directly and indirectly, react ruinously upon have been sold in Chicago, New York. St. Louis, New Orleans or any of the the farmers, in whose interest the measure is ostensibly being pushed. other great markets to the consumer or to a speculator. He is only inter In attempting to legislate against options or gambling contracts the ested in knowing that the property on hand has been ''placed " at a price washburn and Hatch bills fail utterly to make the proper distinction be that pays hUn a moderate profit on the money invested, and that a few tween such gambling contracts and legitimate contracts for purcha.<>e and months later, when it is forwarded, it will be taken and paid for. His con ·sale of commodities for future delivery. They attempt to stamp as illegal tract of sale gives him assurance in that respect. a clar.s of contra<'ts which the Federal and State courts have for more than It may be contended, perhaps, that the Washburn and Hatch bills do not, thirty years held to be valid and binding, and which are now recognite:l as in words, prohibit speculation in farm products, where the a-ctual property a part and parcel of our commercial and financial system. is bought and sold. They do prohibit the resale of such productsbytheorig Contractmg for future delivery has entered into every phase and feature inal buyer, however, until the actual property comes into his possession,-on of the industrial aud business life of the civilized world. It is rare that an the full maturity ot his contract. He can now sell it the moment the con enterprise ot any importance is now updertaken which is not predicated tract of purchase is made, and the identical parcel may b'3 sold and resold a largely upon contracts for labor, money, or supplies exten~g into the thousand times before the property finally passes into consumption. future. The right to so buy and sell enables grain and produce merchants to limit A capitalist planning to build a house or a block, let it cost$1,000or $1,000,- their losses or realize profits at any time they may elect between the torma 000, contracts for its construction from beginning to end, makes his finan tion of the contract and its maturity. J cial arrangements accordingly, and, so tar as he can do so, sells his floor The fu.cility that is thus enjoyed for releasing capital attracts boundless space short-ali before a spade is put into the ground. The various con cheap money into this branch or trade, which would be withdrawn upon the struction contracts are, in their turn, based, as tar as may be possible on introduction of a disturbing factor tending to restrict dealings in futures. contracts tor the future delivery of materials and labor at an agreed pnce.1 The Washburn and Hatch bills, in aiming at gambling, overshoot the mark The stone, steel, iron, brick, slate, mortar, wood, and other materials may and strike a deadly blow at legitimate commercial usages which have re pass through twenty hands before they reach the person or persons origi ceived the recognition and support of the courts of the land. nally contracting to deliver the same. The original contract is none the These contracts, in infinite number, representing actual property of very less valid on that account, though at the time it was made the party agree great value, form the basis of operations on the commercial exchanges. ing to deliver the property may have had no clear idea how or where he was Speculation makes a market at all times for the-property that is in t-ransit from producers to consumers. It is the indispensable solvent. Property to.f~! :~~af{~:c\ili.nt, speculating on theprobab~e requirements of the pub that can be realized upon without delay is security upon which fiscalihsti lic, orders _goods to meet these requirements. His wants are supplied by the tutions will make advances at the lowest interest rates, thus minimizing the XXIJI-412 6578 CONGRESSIONAL RECORD-SENATE. JULY 22, cost of carrying, a state of facts which is. or direct advantage to the pro As an experiment the Washburn and Hatch bills are pregnant with danger ducers, as it enables the dealer to pay more originally than he would be Their good points are few and their bad features many. The safety of the -othenvise justified in doing. commercial interests of the country demand their defeat. . When cereal reserves are nearest exhaustion the combined visible supply Respectfully submitted. of wheat in city and country warehouses ranges from 20,000,000 to 35,000,000 C. D . .HA.MILL, bushels, and during the autumn and winter months the load that is being S. W. ALLERTON, carried across the bridge upon the shoulders of capital somet.imes exceeds T. A. WRIGHT, 75,0011,000 bushels. During the period of greatest surplus accumulations in MICHAEL CUDAHY, the best year the "visible supply" alone was 60,000,000 bushels. The aver J. HENRY NORTON age stock of wheat in this country available for immediate commercial use Commtttee.1 1s close to 50,000,000 bushels. Not less than 100,000,000 bushels of corn in cribs along lines of railroads or in public warehouses is carried continually on advances from commission BALTIMORE CORN AND FL01JR EXCHANGE. firms on the great exchanges and from local and city banks, farmers being relieved of the burden they are illy equipped to shoulder. THE BALTIMORE CORN AND FLOUR EXCHANGE, Of oats possibly 30,000,000 bushels are bought of the producer and carried CHAMBER OF COMMERCE BUILDING by middlemen in anticipation of consumptive requiJ:ements. · BaUimore, F e1Yruary 13, 1892. The product of from 2,500,000 to 4,0ll0,000 hogs has to be similarly provided DEAR SIR: The undersigned, a committee appointed by the board of direct for, on an average, from one year's end to another. The visible supply of ors of the Baltimore Corn and Flour Exchange, finding that yow: honora American cotton, that is, the quantity that has passed from the p1·oducer ble committee could not gl'ant them a hearing later than Monday 15th in and has not yet gone into the possession of the consumer, ranges from 175,- stant, and not being prepared to meet in Washington at that time Wishes to 000 to 1,250,000 bales; the average "VU.ible" may be put at 750,000 bales. place itself on record as representing said exchange as heingunqualltiedly op The caDital required to carry the enormous surplus of the few commodi posed to any legislation embarrassing citizens of this country by any laws ties enumerated above is shown with approximate accuracy in the following prohibiting or hampering a rree disposal or the great staples produced table: therein, and particularly House bill No. 2699. The protest presented to your honorable committee by the New York Pro Approxi duce Exchange ~sa paper drawn up in admirable form, and, reflecting, as it Commodity. Average · ma.te does, our views m every particular, we beg to put ourselves on record before quantity. home value. your honorable committee as strongly indorsing it. · We are sure the passage of this bill will prove to be most disastrous to farmers and merchants, and can only benefit a few who, in their desire to Wheat.• ------·--·· •••• ------.. --·-bushels .. 60,000, ()()() ~.ooo,ooo contTol supplies for their own ends, are unscrupulous enough to sacrifice Corn ______------_____ do ___ _ 100, 000, ()()() 25,000,000 the general interest. Oats •• ---- ____ ------_ ••.•.•• ------__ ------_ ..•. do---. 30,000,000 6,00),000 Very respectfully, Hog product. ------Pounds .. 450, 000, 000 27, ()()(J, 000 JNO. L. RODGERS, COtton __ ------bales .. 750,000 35,000,000 LOUIS MILLER, F. T. SMITH, Total _____ ------__ ------..•. 138,000,000 BLANCHARD RANDALL, HENRY A. PARR, CommUtes. The foregoing is unquestionably an inside estimate of the amount of Ron. WM. H. HATCH, • " money actually employed in carrying the surplus of the leading crops until Chairman .Agricultw•al Committee, such time as iL may be needed by the nation's customers. At times a vastly House of Representatives, Washington, IJ. C. • larger sum is employed in moving the cro:ps, and rarely is a smaller amount needed. This enormous capital is an act1ve, virile, substantial support to the values to agricultural products, and not, as many ignorant or poorly-in- PROTEST OF CHICAGO MERCHANTS AND MANUFACTURERS AGAINST THE formed persons imagine, a source of depression. _ WASHBURN BILL. Destroy the system or contracting for the purchase and sale of agricultural To the Congress of the United States: commodities for future deli-very, by imposing :1. prohibitive tax on such op erations, and a very large proportion or the capital thus employed will seek The undersignedherebyrespectfully and urgently protest against the enact other channels for investment. The farmer may rid himself or the middle ~~niv-~~~~~~e :Jl~ No. 1757, "deiining options and futures," and known as men, but he will also be bereft of his market at the same time. The exorbitant dealer's license provided in the bills, and the extTavagant We believe that the passage or any such bill would be no!; only seriously tax of 5 cents per pound on cotton and hog products, and 20 cents per bushel detrimental to the agnculturist, but would be of incalculable injury to the on grain, are of course intended to be prohibitory. Were it otherwise, the manifold industries of the entire country, inasmuch as these industries de tax would be only an added burden on the a~ricultnral and industrial in pend for their profitable pTosecution upon that system of buying and selling terests of the country. Taxation of this descnption mnst eventually be paid for future delivery which the Washburn bill would destroy. by the producers. This is a law of economics as immutable as nature's law We believe the dealings in futures in grain and hog product, as regulated of gravity. There is no escape trom its operations. by t.he board of trade of Chicago, and similar exchanges, based on the actual t_ Capital is selfish. It will not pay for the privilege of being employed for delivery of the commodity traded in, are the highest development, after another's benefit. Interest charges do not run that way. · years of labor and experience, of the best system of handling the enormous The remedy for agricultural depression does not liei n Congressional en crops of this country to the most profitable advantage of the producer. actment depriving farmers of a ready market for their crops. Existing ma This system affords an open market on which the world's producer and chinery for the handling of the nation's crops may seem expensive, but it is consumer can meet in establishing values "\'lithout the limitations andre the cheapest that has ever been known in the world'shistory. If any cheaper strictions which an exclusively consumptive demand would impose. method can be devised for doing the work, keen-eyed competition for profit-' Its daily declaration of values is the analysis of the world's product andre able investment of capital will discover it. L-egislation will not be needed quirement, and reduces to the minimum the risk of those engaged in hand to point the way. Neither will agricultural depression be dissipated by ling the crops, thereby securing to the producer the highest bids at all times. Congressional enactment. It is a sore that will the more speedily cure it By this system our merchants yearly advance millions of money for the self if let alone. If something mnst be done, then lighten instead of adding cribbing and warehousing of grain throughout the country, which, without to the common burden of taxation. the protection of the present market, would not be done. To destroy this system, as contemplated by the Washburn bill, would re atT~~1t::J~~ng~~~ ~~~~~1 ~eis~~r~~zJr!~;s:a~~ 01b~~f~r~ duce the circulation of money when most needed to move the crops, would truth of this statement is illustrated in the course of market >alues of com greatly restrict credits oWing to uncertainty of values, practically drive the modities in which there has been most general speculation of late years, small grain merchants from tfte field, and concentrate the business of hand namely, grain, hog products, cotton, and oil. The tide has ebbed and flowed ling the products herein referred to in the hands of wealthy corporations with placid regularity. Speculation, within bounds, is quite as legitim!l.te and syndicates of warehousemen and millers. as manufacturing, merchandising, or banking, and serves quite as useful Franklin MacVeagh & Co.; Marshall Field; Sprague, Weimer & apurpose. . Co.; Lord, Owen & Co.; Markley, Alling & Co.; Pitkin & Brooks; Gambling is the abuse or speculation, and like any excess ei'rects its own Reid-Mm·doch Company, Thomas Murdoch, vice-president; cure in the exhaustion of the resources ofits votaries. As before remarked, W. M. Hoyt Company, Graeme Stewart, director· Kelley, gambling in farm products is merely the foam and froth on the surface. Maus & Co.; M.D. WellB & Co; Charles H. Schwab; Entler The real business is dominated by the well-defined laws of trade and com Brothers ; Phelps, Dodge & Palmer; McCormick H. M. Com merce. Like the fly on the wagon-wheel, the gamblers in produce may think pany: Fraser & Chalmers, Thomas Sutter, secretary; The they are raising a great dust, but they are really of minor importance. Warder, Bushnell, and Glesner Company; Carson, Pirie, The following from the pen of a noted writer on political economy, may Scott & Co.; Henry W. King & Co.; Sweetr, Dempster & Co.; further explain the utility of contracts for future delivery, the parag1·aph James H. Walker & Co.; C. M. Henderson & Co~ Wells & having direct reference to grain: • Nellegan Company; Hibbard, Spencer, Bartlett & Co., Wil "The only standard by which we can test these contracts is that of utility. liam G. Hibbard, president; The Illinois Steel Company, by Do their benefits outw~h their mischiefs? Are the complaints against them Jay C. Moore, president. founded in ignorance and want of thought? If so, they are beneficent: and if beneficent, then in every ethical analysis they are right. The advantages of future contracts in grain, founded on the system of grading grain in bulk, MINNEAPOLIS CLEARING-HOUSE ASSOCIATION, and issuing warehouse receipts for certain quantities of certain grades, and buyin~ and selling these receipts, as compared with the alternative system MINNEAPOLIS CLEARING AsSOCIATION, January 16, 1 2. of selling grain by sample, or on view, are so great that it is not too much to say that to provision the civilized world without the aid of such mechanism To the Jfinneapolis Olearing-Houae .Association: would be hardly less di.mcult than to transport to market the world's food GENTLEMEN: The rmdersigned were appointed by you as a committee to material without the use of railways. consider and report to you om· conclusions on Senate bill 685, offered in the "A class of contracts which perform such services to commerce; which pro United States Senate December 14, 1891, by Mr. WASHBURN, entitled " A bill mote the production of the statr of life and cheapen bread and provisions defining • options' and • futures' andimposingspecia.l taxes on dealers thereiu, throughout the civilized world; whose profits rest on economic law, and not and for other purposes." Any consideration or this bill must be prefaced by on blind chance; which give equality and firmness to the prices they are trhe acknowledgment of the fact that illegitimate speculations do exist in the charged with disturbing, can only be belittled into bets by those whose knowl commodities named in said bill and to such an extent as to be deplored. edge or business is that o! children. Their cost, if their benefit has a debit It is to be presumed that the object of this bill is to abolish the evils re side at all, is not to be placed in comparison with their beneficence." sulting from the illegitimate use of these "options" and "futures" deal · In the foregoing no reference has been made to the.industrial disturbance ings. Your committee have carefully considered the p,rovisions with a view that is likely to result from the overthrow of the system of trading in vogue to determining its e:f'l'ects both incidentally and direct y upon the legitimate on the commercial exchanges of the country. grain business, from the producer to the consumer, in so far as its relations Hundreds of thousands of men are employed in the great mills, in the mam with this association are concerned, as well a.s its relations with all others moth packing houses, and in forwarding the crops of the country after they who are called upon to fUrnish funds with which to raise and market the leave the farmers' hands. The wages of this great host of .employ..ed men crops of our immediate section. wm be dangerously disturbed and seriously reduced. Much pains have been taken to obtain the advice of practical grain men 1892. CONGRESSIONAL RECORD- SENATE. 6579 who are familiar with all the deta.ils of the business, both now, under exist- lar meeting held January 14, 1892, and were unanimously approved and 1,ng options and futures markets, and during the long period prior thereto adopted. When no such markets existed. F. H. FORBES, Secretary. Mr. wASHBURN himself admits that if this bill becomes a law no one could MINNEAPOLIS, MINN., JanuaT'Ij 20, 1892- buy for fUture delivery except the manufacturer and the exporter. T;his would of course, restrict all sales for 1uture delivery to these two parties, so driVlng out of the grain business a large class of elevator and commission houses and forcing the producer to sell his crop to one or the other of the MINNEAPOLIS CHAMBER OF COMMERCE. classes named, the manufacturer or exporter. In our opinion this legislation would injure the farmer, upon whose pros To the !Lonarable Senate and Ho11.8e of J.lepresentatives perity our whole section is dependent, by restricting his market and inevita of the United States in Congress assembled: bly lowering the price of his products. Your petitioners respectfully represent t:> your honorable body that., for We can not but regard the dealing in the commodities named in this bill, reasons hereinafter given, the legislation in what is known a.'> the "Wash "wheat, corn. oats, rye, barley, cotton, and all products," also "pork, lard, burn option bill," or bills of a similar character, is against the best interests and all other hog products," as entirely legitimate on the part of the elevator of the producers of and dealers in grain in the Northwest and other agri and commission houses, notwithstanding the fact that reckless persons do cultural States, and i! accomplished will most seriously depress business a.nd and will continue to gamble in them, and any legislation that contemplates, interfere with the prosperity of this grea.tgra.iu-producing country. by prohibitive taxes, doing away with all dealers in grain save the ma.nu First. Its provisions will destroy some of oul' most extensive business in ta.cturer and the exporter and forcing the farmer to confine his sales for fu terests and work incalculable harm to this entire section. We most ear ture delivery to these two parties, must be considered as practically class nestly petition the honorable Senate, and each individual member thereof, to legislation and therefore unuesirable. . give the most careful and Ee:rious attention to this measure, satisfied tha.t We should consider that il this bill becap1e a law it co~d but resul~ m a. thorough a.nd unbiased examination of the matter will result in its de seriously injuring the credit of all our gram men by making it impossible feat. The passage of this bill would, in our judgment, be a calamity, and tor them to protect their holdings by sales for fUture delivery, and it the would aid in estabQphing all the questionable class of wheat speculation farmer were prohibited from selling his crop for future delivery, save to the which the author of the b1ll declares it is his pru·pose to prevent. Your pe exporter and manufactm·er, it would be at such low prices as would warrant tionersrespectfully represent as follows: the purchaser in carrying it and result in putting the price of wheat so low The ostensible ob~ect of Senator WASHBURN'S btil is to prevent the short that it would greatly injure, if not ruin, the farmer. • selling of agricultural products. Tradin~ in farm products for future For the foregofng reasons your committee report this bill as impra.ctiC?-ble months grew from necessity through the mclina.tion of owners to sell for and undesirable. Impracticable because it belongs to the class of legisla forward delivery property they could not get on the market for present de tion that can not be enorced. Undesirable for the reason that if it could be livery. enforced its injurytolegitimate businesswoud entail much greater loss and Back of the necessity are several causes, the leading ones being the preser demoralization than that which the bill seeksto remedy. We therefore sub vation·of the buyer's credit and financial safety. Buyers of grain from farm :Jllit this report with the suggestion that upon due consideration of the same ers must hold the grain in the country for an indefinite period, awaiting t;JUs association should communicate its views on the proposed bill to our their ability or the convenience of railroads to haul it to market. They are Senators and Representatives through some suitable committee. forced either to sell it for future delivery or carry it themselves as specula tors. It they attempt to carry it as speculators, they would at once destroy Respectfully, J. F. R.FOSS their credit and would find great di.ffi..cultyin getting money to pay the farm Presidmt "Nicollet National Bank. ers for the grain. There are sometimes no less than 30,00(,,000 bushels of S. A. HARRIS, wheat in Minnesota. and Dakota. elevators. That grain could not well be paid Prerident National Bank of Comme1·ce. for, i! held for speculation. for banks or other money loaners would not feel J. W. RA. YMOND, secure. Now, money can be obtained on a small margin of 10 percent under Vice-President N01·thwattrn National Bank. current val nes of the ~rain. . F. A. CHA.MBERLAlN, The grea.tcr.ops of Minnesota. and the two Dakotas are all marketed in a. short PresidentNational Bank of Mmrusota. space of time-four or five months of each year. The manufacturers of wheat into flour, whom this bill seems designed t-o benefit, in ordinary years Pr!!i~~.W,~fkational Bank. use quitealarge percentageofthisgra.in, buttheyarenotabletohandleitand Report was unanimously adopted. pa.yforit as rapidly as it is o1Iered. By making a. law, as the Washburn bill Trusting that the combined e1Iorts of the busine.ss of the count1-y interested seems to contemplate, that no dealer could sell until the property would be 1n defeating this btil will be sucQessful, we remam, actually in his possession, would limit buyers, for few would be found to buy for forward delivery property that they could not sell again until it Yours, respectfUlly, PERRY HARRISON, would be actually in possession, If there is a neces ity for fUture sales, Manager, there is a necessity for buyers of them, and any rule that prevents the unre stricted sale of what has been bought would have to use the property for consumption or export. Mno~EAPOLIS BUSINESS UNION. Many classes of buyers are continually in the market. Millers, who buy against contracts they make to deliver flour; exporterl>j who charter ships To the honorable Senate and House of R~resentatives t·ahead or make contracts to deliver in Europe; traders, who think that one of the United States of .Amen.ca in Congress assembled: market is out of line with another, and buy in one market and sell in an At the re!mlar meeting of the Minneapolis Business Union, held on Janu other; carriers, who have money and buy for one month's delivery to sell ary a last "'the Washburn option bill was considered, and after an almost for another, to make the difierence; and others. who think that markets are unanimous expression against the bill the committee was appointed. whose lower than they should be, and consequently buy for investment with the names are here subscribed, with power to draft resolutions expressmg the intention of selling at an enhanced price when obtainable. All these com sentiments of the Union and forward same to your honorable body. pete in the purchase of the products of the farmers of the Northwest and On tbe 15th the Chamber of Commerce of this city adopted resolutions op the entire country. The Washburn bill will certainly destroy this competi posing the Washburn option bill, and these set forth so clearly and fully the tion and drive all but two of these classes, viz, the miller and exporter, from objections to the bill tha.t the Business Union committee feel it unnecessary the now open and tree grain markets. to repeat the arguments therein contained, but wish to indorse and approve The result of thus reducing competition will be to materially lower the most heartily of the resolutions referred to, a printed copy of which is hereby price of the great staple of the Northwest, as well as all other agricultural products, at country poin~ as compared with seaboard values, and make the at~~h~giunuttee respectfully invite the attention of your honorable body to business of dealing in grain insecure and purely speculative. Under the the following points against the bill not specially mentioned in the Chamber present practice the grain IS chiefiy owned and the carrying expenses paid of Commerce resolutions: by speculators. The grain in the Northwest is sold again in New York, Chi (1) We believe that a. law prohibiting the elevator companies from insuring cago, and other places for the reason that i1 during the heavy movement of against loss from fire would be no more damaging to their interest (and grain all sales were made in the primary market, where the actual grain is through them to the producer) than this bill, theef!ectofwhich is to prevent :t1nally to go, it would depress prices below their actual value. insurance against loss by decline in the market by sales for fUture delivery. The grain-dealers who make these protection sales change them back to Indeed, we believe the former evil less disastrous in its ~fleet than th~ latter, the primary market as soon as a favorable opportunity presents itself. It for the reason that the elevators of the various comparues are manym num would be impracticable to make such sales under the terms of this bill, for ber and located at the railway stations of the wheat-producing States, and it would not always be convenient to deliver the property in the market loss from fire would not be great at any one point, and consequently would where originally sold. Then, further, i! those who buy it should be forbidden damage but a small portion of the companies' property, while a. decline in to sell it until they could deliver it, they would not l.luy it, except at gr.eatly the market immediately a1Iects every bushel of grain owned by the compa reduced prices. 'l'he same rule of buying at reduced prices would nece sa nies. rily attach to every purchase from the farmer to the consumer, for no one (i) The best guide in matters of business is actual results. Judged from would pay fUll prices for things he would not be obliged to sell, except under this standpoint the proposed legislation would seriously hurt the producer, such onerous restrictions as would be a burden. as shown from the. fa.ct that previous to the time that fUture trading was When grain is sold from the farm in excess of present requirement , it is established in thLc; market the difference between the price in the terminal usually bought by speculators, for the simple r eason that speculators p:ty market and that paid the producer in the country was 9 cents per bushel, more for it than millers or exporters are justified in paying to anticipate while now the difference is 4 cents. Before an open market was established their future requirements. There are nownearly30,000,000 bushels of wneat. buyers were confined to the few who manufactured the raw material and in store in Minnesota and the two Dakotas, sold to speculators in excess of fixed the price to be paid, and, to protect themselves, were forced to buy on the amount that millers and exporters were willing to take. broad margins to cover the risk taken. Even if it be admitted, as is claimed, that there is a class of speculators, (3) That the free and unrestricted dealing in grain tends to make prices few in number, who take an unfair advantage or the boards of trade through· lower, we believe can not be successfully shown to be .true. That there would out.the country, we bel1eve that in every line of business there are objec be as many who would believe in higher future pnces and become active tionable men, and do not believe tllat good legislation will endeavor to de buyers, thus sustaining and advancing the price, as there would be who stroy ninety-nine legitimate and regular dealers in the staple-food products would sell on the expectation of lower prices, seems a proposition so plain of the country in order that one insignificant and unscrupulous peraon may that it requires simply to be stated to convince any fair-minded investigator. be pla-ced under the ban of the law. (4) We have referred to theinfiuenoe on wheat only, as that is the product The claim that the future selling of gi'ain tends to lower prices is not cor especially affected in this section, but believe that the arguments herein ex rect. Combinations formed with a view of influen cing prices are usually to pressed apply with equal force in all sections of our country where condi enhance values and are much safer. To be founr:l on the short side wit.l,} a ,, tions are such that the pru·chaser of the farm prouuct; must protect himself line of sales out below the legitimatE.> value of the property,is a position too by ·selling for future delivery. dangerous to be taken deliberately. The only inViting fields for short sell Respectfully submitted. ing are instances of fictitious advances, or when tbe mru:kets are from any E. J. PHELPS, cause forced out of their true va.luas. Eveu with the most inviting field for I. C. SEELEY, his ope1·ations the short seller can never sell a bushel more of futures than C. P. LOVELL, he buys, for all contracts must be completed at maturity by delivery of the A. B. ROBBINS, property. The practice of future selling for speculation, pul'e and simple, S. A. HARRIS. tends rather to enhance values than depreciate them. The latter contention. MI.NNE.A.POLIB, MINN., January 19, 1892. however, is not the leading one. I hereby certify that the foregoing resolutions are in accord with the sen The lea.1ing idea. is that futm·e sales are necessary for the most economi timent expressed by the directors of Minneapolis Business Union, at a regu- cal movement of crops trom the producers to t-he consumers, and that to . 6580 CONGRESSIONAL RECORD- SENATE. JULY 22, - restrict buyers would be to break up competition with the activity and SECOND OBJECTION. higher prices which it stimulates. Before the present system was estab lished, buyers from farmers were compelled to buy on wide margins because "That it aims to overturn existing conditions," etc. If there is anY' one there was no way to protect themselves. At that time fluctuations were element more noteworthy than another in advancing what may be termed violent and otten very disastrous. Under the present custom the country the "agricultural" or "farm commerce" of the United States into th~ buyer protects himself daily by selling in some of the terminal markets. proportions it presents to-day it is the facility with which transactions can His risk being thus reduced to a minimum, he is able to buy from the farmer be made with all markets (foreign and domestic) for our surplus farm on a small margin of profit to himself, and markets are much steadier than products, through the medium of purchases and sales for future delivery formerly. It is impossible to give you the volume or value of home transactions 'as ,. We respectfully ask, therefore, that this matter be fully and thoroughly they are being operated daily in hundreds, I might even say thousands, of Investigated before final action is taken concerning it. As we view this pro majOr and l!linor markets throughout the length and breadth of the land. posed law its purposes are: Such statistiCs can not be obtained, but from our statistician I have received To destroy the credit of some of the most extensive institutions in the the declared value of the three great articles of commerce that are attacked country. · in the bill, ~. br~adstutls, provisions, cotton, :which were shipped to for To change the entixe system of handling the enormous grain crops of the eign countries durmg the year 1891. They are as follows: country. · To substitute speculation and uncertainty for legitimate business and cer ~~~i=~:~~~:~~:::~~::~~~~::~~~::~ ::~~ ::::::~~::~:~~~-·:::~:~:: :::: ~aJ: ~~: ~ tainty. Cotton ______-----_------______------______------·---______Z77, 038,511 To seriously affect the prices of America's great sta.pi6 productions and revolutionize the approved business methods of the great trade centers and Total ------·------__ -----"------____ ---- 638, t'35, 913 bring to disaster the ~oducer and those who assist him in handling and The total yalue of all articles exporte_9. from the United States (specie ex ~~;~ft~ ~'iY~: and placing them to his best advantage upon the mar- cepted) durmg the same period was $9o7,339,705, so that you are faced with In conclusion, the Minneapolis Chamber of Commerce herewith makes the the grave responsibility of dealing with a measure that directly affects not most vigorous protest against the passage of the so-called " Washburn op only our enormous home trade, but also almost 81 per cent (exact 80.97) of tion bill," or any other similar legislative enactment so fraught with dan g~~{;i:t~re~~;J>~~t~h<:fe~~e excepted), and all parties who are directly ger to business and the producing interests of our country. We hereby certify that the above protest was read and unanimously Now, we~ not hesitate to say (although we speak more from an experi adopted by the Minneapolis Chamber of Commerce on Friday, January 15, ence in breadstutrs and provisions, but our cotton friends are present and A. D, 1892. will please co_rrect us it we are in error) that by far the larger part of these F. L. GREENLEAF, President. enormous shipments were purchased by the exporter for :future delivery C. C. STURTEVANT, Secreta1'1J. and that before they reached the port of ultimate shipment they formed the basis of transactions for future delivery outside of the eXJ?Orter, aggregat- NEW YORK PRODUCE EXCHANGE. ~~itl!~r~~u~~~~-ta:m_~unt, every one of which was legitimate and mer· Protest of the New York Produce Exchange against the passage of Senate The vessel service which was required to transport all this merchandise to billNo.1757,introduced bytheHon. Mr. WASHBURN and entitled, "A bill de its place of final destination was contracted for, to a very great extent long fining · options' and • futures,' and imposing special taxes on dealers before the vessels sailed for their American ports, and the bills of exchange therein, and for other purposes." which provided the "ways and means" for payment were also largely sold To the honorable the Senate of the United States: to the aealers in foreign exchange for future delivery. In fact, a!most every GENTLEMEN: The New York Produce Exchange received its charter from element in these shipments partook of the "future" character the object the Legislature of the State of New York in 1862. Some of the purposes of being to minimize the risk arising from a possible change in market values the corporation are therein set forth as being "To inculcate just and equit between the date of the original purchase from the producer and arrival at able prmciples in trade, to establish and maintain uniformity in commercial the place of consumption. usage, to acquire, preserve, aud disseminate valuable business information, We will make a further statement relative to these shipments and chal and to adjust controversies and misunderstandings between persons en lenge its contradiction. If the "future" element had been eliminated from gaged in business." such transactions the volumes of our exports would have been much de We have fulfilled our charter obligations in a manner that has obtained creased, and the farmer would have received a much less price for the prod for us influence and leadership abroa.d, and confidence and respect at home. uct that he would have been able to market, for the reason that under the Ou-r membership numbers 3,000 active, business merchants, among whom are old r6gime the middlemen, who were generally firms of large wealth, re- representatives from our large financial institutions and managers of ail 9-uired _a very much larger precentage of margin against possible loss than the lines of inland and ocean transportation centering in New York. Our 1S reqmred under the present system. sessions are held daily during the business hours; we are in continuous tele Now, what is urged in opposition to future sales? It is said that this sys graphic contact with the markets of the Old and New World, and the infor tem is used as a cloak for transactions which sometimes savors more of mation thus obtained is free to all our large constituency. gambling than of legitimate operations, and the assertion is made that, as While not entirely confined to, om- business is largely in, the food prod a large part of the merchandise sold for future delivery on our prominent ucts of the United States (both in their original and manufactured states) ex~hange~ is never actually deliv~red to the original purchaser, this fact is and its ramifications extend to the producer on the farm and the consumer prwnafacte evidence of their illegitimate character. Before answering this in both the home and foreign markets. In fact itis almost impossible to fix statement (and it is held to be true, we doubt not, by many who have only a limit to the influence we exert, or say where it is not potently felt. superficially examined the subject) permit me to present the form of con Having thus introduced ourselves,· we now, in the name of the New York tract that is required in these future transactions. It reads as :follows: Produce Exchange, respectfully but earnestly protest aga~t the enact "GRAIN CONTRACT. ment of the Washburn bill for the followingreasons: First. That it seeks to legalize a most pernicious and vicious system of "NEW YORK, FebrUa1'1J, 1892. gambling that is demoralizing and degrading, and to the operation of which "In consideration of $1 in hand paid, tll receipt of which is hereby acknowl our exchange has always been opposed. edged, I have this day sold to (or bought from) Richard Roe, 5,000 bushels of Second. That it aims to overturn existin~ conditions that are the outcome No. 2 wheat, New York inspection, at 100 cents per bushels of 60 pounds, de of careful thought and sound mercantile Judgment brought to bear upon liverable at seller's (or buyer's) option in May, 1892. old methods that become inoperative under the strain of increasing produc "This con tract is made in view of, and in all respect to the by-laws and rules tion, the rapid development of railroad trans:t>ortation, the more general established by the New York Produce Exchange, in force at this date. and prompt transmission of business information, and the intense energy "JOHN DOE." of commercial enterprise. It is concise and definite and in every respect legal and binding. If either Third. That it seeks to destroy existing benefits that legitimate sales for one of the contracting parties desires actual delivery under it, it must be future delivery now confer upon the agriculturist at lils own door, and made, and there is no power extant that can relieve the other from this ob through which he realizes what may be termed "the highest world pi1ce " ligation, or t-he damage that may arise from such nondelivery. It is true, at the time he desires to sell, less the cost of transportation and a minimum however, that at times a large, and during seasons of great activity, such as charge by the middlemen who stand ready at all times_ tO purchase his prod we have just been having, a very large proportion of these future transac ucts. tions are not consummated by actual delivery, but this is done by mutual con Fourth. That it would drive to the wall a large army of middlemen, as a sent of both parties, and for which an equitable mercantile equivalent is sub rule modest merchants of moderate means, but active, earnest, honorable, stituted, simply as a convenience to facilitate settlements, which undeT the who are to be found in the smaller towns and villages located on the lines old system of actual delivery under all circumstances, was found to be cum of our great railroads and who have done so much to build up their respec berson and attended with the loss of valuable time and risk. tive neighborhoods, and bring the commerce of the United States to the Take New York, for example. It is a great objective point :for mercantile magnificent proportions that it presents to-day. . transacwonsmade on behalf of parties throughout the Old and New World. Fifth. That it is veneered with moral and philanthropic pretense to hide With such a constituency it continually happens that the merchant who sells a selfish purpose, which aims to injure the many for the dlrect benefit of to-day is a purchaser of the same article to-morrow, and in the aggregate of the few. these transactions it also often happens that a transaction in which he was • FIRST OBJECTION. the buyer can be matched with a subsequent one in which he was the sel The bill in question, it is proper to state, makes a distinction in the mean ler of the same description of merchandise and for like delivery in all re ing of terms which have heretofore on our exchange been considered synony spects except as to price, and when this matching does take place differences mous. Sales for future delivery have always been dealt in and deemed the in value only are paid, and the contract closed without going through the established right of buyer and seller whenever the occasion require:i such forms of delivery and redelivery with all their attendant inconveniences. In transactions, but they did not become a recognized necessity for the pur such cases, and they are the only ones where actual delivery does not take / poses of protection against loss and for facility of operation until about the place, there would be absolutely nothing gained by a strict adherence to the year 1875. Then, because of the rapidly increasing volume of business in old rule, and therefore it was willingly abandoned. farm products, they beeame more general, and for brevity were sometimes Perhaps this can be made more evident by citing the bank clearing-house called "options, ' simply for the reason that when the period of delivery was system in vogue in all our large cities. By means or this system enormous arranged to suit the convenience of the purcha er, it was called a "buyer's daily monetary transactions are settled in a very few minutes by the actual option" and vice versa. a " seller's option;" in either case it was a transaction interchange of compal'atively small sums of money. Bank A receives on de similar in all respects to the meaning given to the term " futures" in the posit during the day checks on Bank B to the aggregate of if200,000 and Bank B second section of the bill. checks on Bank A to the aggregate of $190,000. The following day these banks The meaning given to the term "option " in the first section is known to send their respective claims to the clearing house, and that of B is matched us as a species of gambling called "puts and calls" or "privileges," which against that of A, as far as it will go, and the balance paid in cash. are transactions opposed to law and ~ood morals, and should not be permit In this hypothetical case a joint indebtedness of $390,000 was settled by the ted under any circumstances. Noticmg a growing tendency in some places payment of only !10,000 or actual money, and yet every item in the major to tolerate uch trading, this exchange adopted a rule in 188i which disci amount was legitimate, nor did the system of settlement employed suggest plines any member by public censure, suspension, or expulsion, as the board that a single fictitious element had entered into the transaction from its in of managers should determine, who may be proved guilty of making such ception to its close. It was the growing business of the banks that sug trades on the floor of ou1· exchange. gested the invention of the clearing house, just as it was the urgent needs 11 section one of this bill suppressed altogether such vicious trading, we of commerce to improve upon the old method of actual delivery in every in would heartily indorse it, but it is because the proposition is to legalize it, stance and under all circumstances that suggested the application or the and place it on a parity with sales for future delivery, that we protest against clear~ system, when practicable, as a more rapid and convenient means it. of settlmg contract obligations. 1892. CONGRESSIONAL RECORD-SENATE. 6581 In like manner the l'ailroad, the steamship, the telegraph, and the tele was largely dealt in for future delivery exactly as wheat, corn, provisions, phone, have all been made the servants of commerce, and each has contrib and the other articles mentioned in the bill as subject to tax are, some uted its quota in aiding her marvelous development, and now all such means idea may be formed of the immense advantage the proposed legislation would are deemed absolutely essential adjuncts, which can not safely be dispensed give to the large milling interest of the Northwest. with. But even if the charge " that some illegitimate speculation is operated For these r easons we think we are justified in characterizing the measure under the cloak of sales for future delivery," is true, what t.hen? as "hiding a selfish purpose which aims to injure the many for the direct Is a great public good to be abrogated because of a claimed inability to be::1efit of the few." entirely check a minor defect? It is as impossible at all times to draw the Gentlemen, one word more and I have done. The Unitei S tates is emi linP. so definitely that a mercantile offense of this character can not be com nently a commercial country, and tru·ough her commerce, backe'd up as it is mitted, as it is to make laws which will absolutely suppress all crime. But by agr~cultural, min~ral, mechanical, and scientific developmel').t, is rapidly .(as far as an intelligent consideration of the subject can suggest remedies becommg the wealthiest of all the countries of the world. which will counteract this injurious influence) you will find our boards of L et me call your attention to this fact. which, while we do not claim it as trade and exchanges have not been idle, an T. Hayden, president. Whitney National Bank; ChaJ.'Ies F. Hoffman, Bankers and Exchange; G. W. Nott, president Citi A bill (S. 3154) to amend section 9 of the act for the relief of zens' Bank of Louisiana; G. Ad. Bla.ffer, cashier Germania certain volunteer and regular soldiers of the late war and the Savings Bank; Fred. Peters, president Metropolitan Bank; war with Mexico, p~sed March 2, 1889; J. C. Dennis, president Germania National Bank; Jos. L. A bill (H. R. 712) granting a pension to Jane A. Ward, widow Boru·dette, Gilbert H. Green, Moore, Hayams, & Co., Isidore Newman, sr., Bertus & Dural. of D. A. Ward; I hereby certify the above to be a true and correct copy of the original. A bill (H. R.1350) granting a pension to Mrs. Sophia Bruner THOS. C. HERNDON, Hineline; Ma nager New Orleans Clearing-House Association. A bill (H. R.1777) to remove the charge of desertion from the record of James M. Thompson; BANKERS, MILLERS, AND MERCHANTS OF TOLEDO, OHIO. A bill (H.~- 4270) for the relief of D. P. Abbott, A. S .. Keeves, We, the undersigned bankers, millers, and merchants or the city of Toledo, and T. E. Sm1th; believe that any bill to prevent legitimate trading in grain futru·es would A bill (H. R. 6563} granting a pension to Louise B. Sharp; cause a revolution in trade and such a decline in prices as would injure the farmers and general business interests of the country, and do hereby ear A bill (H. R. 9332) granting a pension to Joseph J. Granberry; nestly protest against the passage of same. A bill (H. R. 3821) granting a pension to Cecilia White; National Milling Company, millers; The Northwestern Elevator A bill (H. R. 5477) to pension Martha A. Beerbower; and Mill Company, millers; F. N. Quale, miller; Loyd & Quale. millers; Toledo Grain and Milling Company, millers; Joel A bill (H. R. 5941) to build a bridge across the Tennessee River Potter & Co., millers; R. B. Mitchell,_miller; McConnell &Co., between a point in Whitesburg, in Madison County and Morgan millers; Miami Maize Company, mulers; Ketchum National County, in the State of Alabama; • Bank, by J. B. Ketchum, second president; Second National Bank of Toledo, George W. Davis, president; Northern Na A bill (H. R. 6752) granting a pension to Martha J. Griffith; tional Bank, Toledo, Ohio, bv J. V. Knisely, president; First A bill (H. R. 70!2) granting a pension to Thomas Thompson; National Bank of Toledo, by M. Nearing, president; Holcomb A bill (H. R. 7117) granting an increase of pension to Henry National Bank, H. Holcomb, president; 'l~e Merchants' Na Merritt; tional Bank of Toledo, Ohio, by N. H. Swayne, vice-president; Reynolds Brothers, grain; The Bellman Grain and Seed Com A bill (H. R. 8398) for the relief of Susan Lomasney; pany, grain; C. A. King & Co., grain; Paddock, Hodge & Cu., A bill (H. R. 8618) granting a pension to Frances B. Wilson; grain; Churchill & Co., &"rain; W. H. Mo?rehouse & 9o., grain; and Southworth & Co., gram; W. T. Ca.rrmgton, gram; W. A. Rundell & Co., g:t~ain; J. F. Za.hm & Co., grain; Cratz Brothers, A joint resolution (H. Res. 103) authorizing the Secretary of grain; H. W. Devore & Co., grain; John C. Maddy, grain; J. the Interior to prepare and send to the World's Columbian Ex 1\1. Cronerberg, grain; T. J. Southard, vessel broker; The position, models, drawings, etc., :prepared or invented by women. Abner ~- Backus & Sons _Company; Blass & Chapi;n; C. W. Coe, gram· J. J. Coon, gram; Will1am M. Coon, gr8J.ll; E. D. Draper, grain; John C. Keller, grain; J. C. Fallis, grain; SOUTH CAROLINA AGRICULTURAL COLLEGE LANDS. George F. Worts, grain; Merrill & Co., grain; W. E. Brigham, grain; J. E. Rundell, grain; Charles Burge, grain; Fred, Mr. PLATT. I ask permission from anyone from whom it is 1\layer, grain; R. T. Thorpe, grain· E. W. V. Kuehn, grain; necessary to ask it, to submit a report from the Committee on T.L. Keck, grain; H. J. Hayes. grain: S. W. Flower. graln; the Judiciary. I am directed by the Committee on the Judi J. H. Borrmon, g1·ain; Frank H. Tanner grain; Denison B. Smith, grain; G. W. Lynn, gra.in; Charles Stager & Co., seeds; ciary to report ba{}k favorably, without amendment, the bill (H. L. S. Sullivan, vessel broker; A. W. Colton, president Lake R. 7322) to authorize and direct the Secretary of the Treasury to Erie Transportation Company; Barker & Frost insurance; pay over certain moneys to the State of South Carolina, as pre W. H. Whitaker, insurance; JohnS. Kountz, insurance; Ira A. Richardson & Son, insurance; A. A. Colton, insurance; scribed by the act of August 30, 1890, entitled ''An act to apply Wright· & Russell, insurance; John D. Irving & Co., insur a portion of the proceeds of the public lands to the more com ance; Canniff & Bowers, insurance; Merritt, Jackson & plete endowment and support of the colleges for the benefit of Ketcham, insurance; William R. Hodge, insurance; Toledo Elevator Company; Central Elevator; Toledo and Wabash agriculture and the mechanic arts established under the provi Elevator Company; Chicago, Hamilton and Dayton Railroad sions of an act of Congress approved July 2, 1862." · Elevator Company, T. E. Ferguson, secretary; The Miami The VICE-PRESIDENT. The bill will be placed on the Cal Canal Elevator Company; The Union Railroad, Elevator, and Transportation Company; Kings Canal Elevator. endar. Mr. BUTLER. I ask that the bill be not placed on the Calen Mr. GEORGE obtained the floor. dar. I ask the unanimous consent of the Senate that it be taken up for consideration now. It is the unanimous report of the MESSAGE FROM THE HOUSE. Committee on the Judiciary. A message from the House of Representatives, by Mr. T. 0. Mr. PLATT. And it is a House bill. TOWLES, its Chief Clerk, announced that the House had passed Mr. BUTLER. It is a House bill, and one in which my State the bill (S. 3406) to accept a bequest made by Gen. George W. is very much interested. Cullum for the erection of a memorial hall at West Point, N. The VICE-PRESIDENT. The bill will be read, if there be no Y., and to carry the terms and conditions of the same into exe objection. cution. The Chief Clerk read the bill, and, by unanimous consent, the Senate, as in Committee of the Whole, proceeded to its consid- ENROLLED BILLS SIGNED. eration. · The message also announced that the Speaker of the House The bill was reported to the Senate without amendment, or had signed the following enrollt3.i bills and joint resolution; md dered to a third reading, read the thi.rd time, and passed. they were thereupon signed by the Vice-President: A bill (S. 620) to amend an act entitled ''An act to promot.e the AIDS TO NAVIGATION IN TAMPA BAY. administration of justice in the Army," approved October 1, 1890; Mr. CALL submitted the following report: • A bill.(S. 710) providing for the relief of William C. Spencer, The committee of conference on the disagreeing votes of the two Houses of Maryland, late captain Seventeenth Infantry, United States on the amendment of the House or Representatives to the bill (S. 1498) for the establishment of additional aids to navigation in Tampa Bay, Fla., hav Army; . . ing met, after full and free conference have agreed to 1·ccommend and do A bill(S. 898) tofurnish the Gettysburg Battlefield Memorial recommend to their respective Houses as follows: Association, at Gettysburg, Pa., with specimens of arms, accou That the House or Representativ.es recede from its amendment to said bill. terments, and so forth, used by the armies in the battle of Gettys PHILETUS SAWYER, burg, for exhibition and preservation at-the Gettysburg Museum; W. D. WASHBURN, WILKINSON CALL, A bill (S.1039) to define the grade of certain medical officers .Jfana{/61'8 on the part ofthe Se.rw.te. of the Army, and for other purposes; S. R. MALLORY, A bill (S.1040) authorizing the Secretary of War to lease pub JOHN J. O'NEILL, JOHN LIND, lic property in certain cases; Managers on tke part of tke House. A bill (S. 1111) to amend the act of Congress approved March 3, 1887, entitled "An act to provide for the bringing of suits The VICE-PRESIDENT. The r~port requires no action on against the Government of the United States;" the part of the Senate. A bill (S. 1230) amending the act of October 1, 1890, entitled MRSr ELIZA E. HEBERT. "An act to provide for the examination of certain officers of the Army and to regulate promotions therein;" On motion of Mr. ALLEN, it was Ordered, That the bill (S.158) for the relief of Mrs. Eliza E. H ebert be r e A bill (S. 1295) to authorize the construction of jetties, piers, committed to the Committee on Claims. and breakwaters at private expense in the Gulf of Mexico, at the mouth of Ropes Pass, in the State of Texas; RETAIL PRICES AND WAGES. A bill (1722) to provide for tbe examination and promotion of Mr. HAWLEY. I report a resolution from the Committee on enlisted men of the Army to t:Q.e grade of second lieutenant; Printing. There was referred to that committee a resolution A bill (S. 1988) to amend sections 2139, 2140, and 2141 of the ordering the printing of 16,000 copies of a certain compilation Revised Statutes, touching the sale of intoxicants in the Indian of prices of commodities lately collected by the Committee on country, and for other purposes; Finance. Those interested have revised the resolution. Ire- 1892. OONGRESSION AL RECORD-SEN ATE. 6583 port back the original resolution and move its indefinite post and I report from the Committee on Military Affairs House ponement and report a substitute in its st3ad, which I ask to joint resolution No. 142, which is identical in terms and has re have read. cently come over from the other House. I may explain, that it The VICE-PRESIDENT. The substitute will be read. may not be misunderstood when Senators.hear it read, that it does The Secretary read as follows: not relate to the famous Chamberlin hotel, but is a more mod Resolved, That there be printed fox the use of the Senate 16,000 copies of a est affair for the accommodation of colored people. . It is con comparison o.f the actual and average retail prices of commodities in four sidered a very worthy enterprise. cities in England in June, 1889, and September, 1891, together with the actual The VICE-PRESIDENT. Senate joint resolution No. 91 will and average prices of the same articles so far as practicable in four repre sentative cities of the United States on the same dates, such comparisons to be indefinitely postponed, if there be no <>bjection. be made from the data collected by the Committee on Finance and to be in Mr. HAWLEY. I now r eport the House joint rasolution, and cJuded in their report to the Senate, No. 986, and constituted:asupplement to ask concurrence with the other House in its passage. such report. By unanimous consent, the Senate, as in Committee of the Mr. COCKRELL. That is part of the resolution introduced Whole, proceeded to consider the joint r esolution (H. Res.142) by the Senator from Kentucky [Mr. C.ARLISLE] this morning? extending the time for the construction of a hotel on the Gov Mr. HAWLEY. Yes it is. ernment reservation at Fart Monroe, Va. Mr. COCKRELL. What change has been made? The joint resolution was-reported to the Senate without amend Mr. HAWLEY. He has looked at this revision himself within ment, ordered to a third reading, read the third time, and passed. an hour, and made a correction in it. It is acceptable to both sides. DEALING IN OPTIONS AND FUTURES. Mr. HISCOCK. This revision simply erilarges the scope of Mr. CAREY. I ask unanimous consent to call up Order of the resolution somewhat. Business 554. Mr. COCKRELL. It includes, however, .all that the Senator Mr. WASHBURN. If the Senator will delay, I prefer to yield from Kentucky asked for in his resolution. a little later. Mr. HISCOCK. It includes all! and is satisfactory to him. Mr. SANDERS. Dol understand the Senator from Minnesota Mr. HAWLEY. I think so, for he looked at it himself within to claim the floor~ an hour and approved it. The VICE-PRESIDENT. Does the Senator from Minnesota Mr. HARRIS. He looked at this paper? yield to the Se:u.ator from Wyoming? Mr.HAWLEY. Redid. Mr. WASHBURN. I say, I prefer to yield a little later. The resolution was considered by unanimous consent and Mr. CAREY. It is ·after 5 o'clock. agreed to. . The Senate. as in Committee of the Whole, resumed the con The VICE-PRESIDENT. The original ~·esolution will ba in sideration of the bill (H. R. 7845) defining "options" .and a fu definitely postponed. tures," imp03ing special taxes on dealers therein, and requiring such dealer s and peraons engaged in selling certain p roducts to COMMERCIAL RELATIONS WITH CANADA. obtain license and for other purposes. :Mr. DAVIS. I move that the Senate proceed to the consid Mr. WASHBURN. TheSenatorfromLouisiana[M.r. WHITEl eration of the bill (H. R. 9324) to enforce reciprocal commercial t e> -day, in calling t-he attel'\tion of the Senate to the protests from relations between the United States and Canada, and for other different boards of trade .and commercial organizations through purposes. I will state that I am instructed by the Committee the country, among others stated that all the commercial organi on Foreign Relations to press the immediate consideration of zations in Minneapolis had sent protests against this bill. the bill. As a matter of fact, there is one commercialjbody tbare, called Mr. WASHBURN. I object to the bill being taken up on th'3 Chamber of Cemmerce, where all the dealings in grain are motion. ·Let my colleague ask unanimous consent. To take it carried on, which sent a protest, but it was under a misconcep up on motion would displace the unfinished business. tion. The attempt has been made all the way through (and the Mr. DAVIS. I ask unanimous consent that the considera line of argument of the Senator from Louisiana was a great tion of the bill may be proceeded with. deal in that direction) to make it appear that the bill prevented Mr. COCKREI.. L. What is the Order ol Business? future sales where there was actually property. When the bill Mr. FRYE. It is the first House bill on the Calendar, Order was introdu~ed that was the understanding, and as a matter, of of Business 884. course, it brought a great man_y -protests. But when the eleva Mr. DAVIS. I will state that I make this request by the par tor men, and the warehousemen, and all the grain m en found ticular direction of the Committee on Foreign Relations. It is that it did not in the slightest degree interfere with future sales a matter of first importance and pressing need. where there was actually property they changed their minds The VICE-PRESIDENT. The Senator from Minnesota [Mr. and their attitude in regard to the bill. As it .happens, I yes DAVIS] asks that the pending bill be informally laid aside, and terday received a report and resolutions from the Board of that the Senate proceed to the consideration of the bill indicated Trade of Minneapolis, which is the general commercial organiza byhim. - tion of that city. I send them to the desk and ask to have them Mr. COCKRELL. The bill was passed over under the former read, so that there will not be any misunderstanding in regard rule. to the position of the people of Minneapolis and of Minnesota. The VICE-PRESIDENT. Is there objection to the present The VICE-PRESIDENT. The paper will be read. consideration of the bill? The Secretary read as follows: There being no objection, the Senate, as in Committee ol the Your committee to whom was referred• the commnnication of the New Whole, proceeded to consider the bill. York Cotton Exchange have had the same under consideration, and after a careful examination of the subject in all of its bearings, have come to the The b1ll was read. following conclusion: The VICE-PRESIDENT. If there be no amendment as in First. That-as a general ruletliefreer theintercom·se between individuals Committee of the Whole, the bill will be reported to the Senate. States, and nations, consistent with a. due regard to the support of govern~ Mr. COCKRELL. Are there not amendments reported by the ments and the protection of individual rights the better the government will discharge its duties; and restrictive legislation should never be in Committee on Foreign Relations? voked, except to-protect the weak against the rapacity of the strong or to Mr. FRYE. No, the amendments which were reported orig protect the community against the unlimited and indiscriminate sale of inally were adopted in the other House, and this is the House such articles as menace their lives and property. Second. That we are opposed to any paternal go-vernment or to sumptu bill. ary laws, but we believe that experience has demonstrated the wisdom of Mr .. DAVIS. I will state that this bill differs from the Senate governments regulating the sale and use of certain articles. Third. That we believe that the practice of selling options or futures on bill heretofore raported by the committee only in immaterial many articles of prime necessity far in excess of the whole amount produced matters of correction of style. It is almost identically the same in the country has a tendency of unsettling prices, disturbing the legitimate bill. course of business, and of enriching the few at the expense of the many; and as an evidence of this state of aJfairs, let anyone who is familiar with the The bill was reported to the Senate without amendment, or business community go over in·his mind the number of his acquaintances dered to a third reading, read the third time, and passedJ who have been ruined by dealing in options. Look at the !ortunes frittered The VICE-PRESIDENT. The bill (S. 3310) to secure certain away, families houseless and homeless. Mothers who have been raised in a.flluence and luxury, weeping over homeless children, whose father is a. reciprocal commercial advantages to citizens, ports, and vessels wanderer in a foreign land or serving a term in the penitentiary for embez of the United States, being on the same subject, will be inde.finitely zlement. Look at the broken banks and ruined credits all over the land. Go postponed. where you will throughout th.a West and you will find in every city and vil lage the victims of this hideous monster. HOTEL AT FORT MONROE, VA. Who is benefited by this great sacrifice? Has anything been produced to make the coUDtryricher, happier, more moral, or more honest? No; but the Mr. HAWLEY. At the request of the Senator from Virginia, system is one of the most destructive of moraJitr, progress. and human I ask unanimous consent for the consideration of the joint reso happiness that was ever invented by the ingenuity of man. What has been lution (S. R. 91) extending the time for the construction of a the result of this syst-em on the price of the present crop? The judgment or the oldest and best informe'.i dealers in London, Liverpool, and Glasgow is hotel upon the Government reservation at Fort Monroe,_va., that the price of the present crop of wheat has been reduced from 5 to 10 6584 CONGRESSIONAL RECORD-SENATE. JULY 22, cents per bushel by this selling wheat that does not exist. Who, having bill is to become a law, having passed the House of Representa 100,000 bushels of wheat, can go into the market and compete with the man that can go on the same market and sell one,. two, or ten millionR, when he tives by nearly four to one, and when it stands I should say two has not a bushel? He can sell the market down or up at pleasure, and the to one in its favor in this body, the price of wheat has commenced legitimate dealer, be he farmer, merchant, or manufacturer, is the football of the gambler. We pass laws against even the mails carrying advertise to advance. Owing to the fear, the very threat you may say, ments of lotteries, and yet when an attempt is made to throttle this monster, that the bill is to become a law, wheat now has already com who 1s destroying thousands to the lottery's one, there are those who lift up menced to advance. In this line I have received a telegram their hands in holy horror at this restriction of trading in options. Your committee are not able to discover wherein such restrictive legislation since I came into the Chamber this morning from Toledo, from as is proposed in what is known as the Washburn bill would impose any one of the largest and most reliable commission houses in that hardship on legitimate trade. Under the operation of said bill any person city or in the State of Ohio, which I will read: who has anything to sell is not afl'ected by it, nor is any person who has crops growing, or is manufacturing fiour, lard, pork, or doing any business Our country correspondents watching for passage of bill. When all tear whereby h~ sells what he owns and has possession of, or who actually de- ~~J>~~~~e;~tg~al sellers out of the way, there will be buyers on the merits ot - livers at some future time what he sells, in any way inconve:oienced by said • bill. 'l'he only persons that are afl'ected by this bill are those who sell things I intended to submit some further remarks to-night, but it is they do not then and never expect to own or deliver to the purchaser, and getting late. Before I take my seat I move that when the Sen those who buy what they never expect to receive, and those persons can buy and sell unlimited quantities, which has the same efl'ect on the market as ate adjourn to-day, it adjourn to meet to-nwrrow morning at 11 would the actual articles so bought and sold. Now, does auyone claim that o'clock. if there was only one-halt the amount of wheat ofl'ered for sale in this or the Mr. MORGAN. I ask the Senator from Minnesota to with Chicago market it would not sell for a better price? Again, the constant draw his motion for the present. fiooding the market with invisible products and then withdrawing the s~me keeps the market in a constant state of fiuctuation, greatly to the loss and Mr. WASHBURN. I have not made a motion to adjourn, but annoyance of legitimate traders and manufacturers. I will withhold it. · Has not the country prospered reasonably for the last hundred years with out this system? And does not nearly every other country on the globe get JUDICIAL SALE OF PROPERTY. along without it? And yet we are told that any legislation that restricts or ·in any way interferes with this practice of gambling will be ruinous tole Mr. MORGAN. I wish to ask the unanimous consent of the gitimate trade and interferes with individual freedom. No gambler or smuggler ever had any love for the laws that interfered Senate to fix for to-morrow, at the close of the routine business, with his vocation. The arguments of the New York Cotton Exchange the first House bill on the Calendar, the bill{H. R. 5816)to reo-u. have no bearing on the Washburn bill. The whole drift of the protest is · late the manner in which property shall be sold under ord~ra against the passage of laws that prohibit persons from selling what they possess, or of selling articles for future delivery that the vendor ha.s in proc and decrees of any United States court. The bill was reported ess of production, or of which he is manufacturing, such as a miller selling from the Judiciary Committee by the Senator from Iowa [Mr. fiour, a packer selling pork or lard, a cotton raiser or manufacturer selling WILSON], who is absent sick. The Senator from Colorado [Mr. his cotton or his fabrics, a farmer selling hiH wheat, all of which they de liver at some future time agreed upon, ora merchant who has bought wheat. TELLER] offered an amendment to it, and he is absent sick. Th6 None of these cases are affected by this bill. Senator from Colorado has requested me to take the bill in This city is the largest primary wheat market in the world; and the senti charge. I ask unanimous consent that it may be set down fol' ments expressed in this report are the result of large experience and ob servation, and are forced upon us by the melancholy evidence that we see consideration in the morning after the routine business. daily of the disastrous etrect of dealing in options. The VICE-PRESIDENT. Is there objection to the request In view of the foregoing we would recommend the board to pass the fol- made by the Senator from Alabama, that the bill (H. R. 5816) to lowing resolutions: • regulate the manner in which property shall be sold under or Resolved, That the Board of Trade of the city of Minneapolis a.re in full sympathy with the principle enunciated in the bill No. 1757, introduced in ders and decrees of any United States court shall be made a the Senate of the United States by Senator W. D. WASHBURN, and that we special order for to-morrow morning at the conclusion of the advise our Senators and Members to support this bill or some other em outine business? · br ~ cing this principle. - Resolved furtker, That the Secretary of this board forward this report and Mr. CALL. If the Senator f.rom Alabama will allow me, I resolution to the Cotton Exchange in New York City, and to each of our will stateto him thattheSenatorfromMississippi [Mr.GEORGEj Members and Senators in Congress. is particularly interested in the bill now pending relating to Mr. WASHBURN. We have heard from the various ex options, and his health is such that he is very desirous of speak changes, from -people who are interested in this kind of busi ing immediately after the conclusi.on of the routine business in ness, and of course we expect them to be against the bill. I the morning. s :md to the desk a copy of a letter received from a gentleman Mr. MORGAN. I ask only a few minutes to-morrow for the very well known in this country, and I should like to have it consideration of this bill. • read. The VICE-PRESIDENT. Is there objection to the request Mr. PALMER. Mr. President- made by' the Senator from Alabama? The Chair hears no ob The VICE-PRESIDENT. Does the Senator from Minnesota jection, and it is so ordered. yield to the Senator from illinois? COMMITTEE SERVICE. Mr. PALMER. I hope the Senator will yield to me that I may ask him a single question. Mr. GORl\fAN. The Senator from New Jersey [Mr. Mo Mr. WASHBURN. Let the letter be read first. PHERSON] has been called away and will not be able to be presen1 The VICE-PRESIDENT. The letter will be read. in the Senate during the remainder of the session. He is a mem The Secretary read as follows: ber of the Committee on Immigration, which has been author HARTFORD, July 18, 1892. ized to sit during the recess, and at his request I ask the Senate MY DEAR SrR: I have read with great pleasure and cordial assent your to excuse him temporarily from service on that committ ~e until comprehensive speech on options, and of course feel very highly compli the next session, and that the Chair fill the vacancy. mented that you thought my fiing at gambling worthy of quotation in your argument. The VICE-PRESIDENT. The Senator from Maryland asks Ordinary gambling is bad enough, but this sort you are attacking is still that the Senator from New Jersey [Mr. McPHERSON] be excused more demoralizing. Evidence of this is in the way business men of other until the next session from serving upon the Committee on lm· wise good character are getting to regard it. It is the strongest kind of a point you make that this method of dealing is a positive injury to legitimate migration. He will be excused, if there be no 'Objection. business, to all bealthfnl commercial life. Mr. GORMAN. I ask that the Chair fill the vacancy. I do not know whether any legislation can stop the evil, but even if the bill The VICE-PRESIDENT. If there be no objection, the Chair on the subject can become a law; and even it any law should be ine:tfectual, the etforts of men like you in high places, and full discussion, will make pub will fill the vacancy. The Chair will appoint the Senator from lic opinion of the right sort. Florida [¥r. CALL] in place of the Senator from New Je:P~ey, With wishes for yom· success, believe me, with great respect, excused. Yours, sincerely, · CHAS. DUDLEY WARNER. HOUR OF MEETING, ETC. Senator WASHBURN. Mr. WASHBURN. I renew my motion, that when the Sen- The VICE-PRESIDENT. Does the Senator from Minnesota. ate adjourn to-day it be to meet at 11 o'clock to-morrow morning. yield to the Senator from Illinois for a question? Mr. SANDERS. I ask leave to call up a. solitary bill. Mr. PALMER. I merely wish to ask the Senator from Min Mr. WASHBURN. I ask for a vote on my motion. nesota ii there is any statute in Minnesota forbidding the deal The VICE-PRESIDENT. The Senator from Minnesota moves ing in options and futures? that when the Senate adjourn to-day it be to meet to-morrow Mr. WASHBURN. I think there is not. I have just received morning at 11 o'clock. a telegram. These people have been making claims at different Mr. CULLOM. I hope the Senator will postpone that order times that the consideration of this bill is injuring the market until Monday. · and depressing the price of wheat, and all that. We would hear Mr. HISCOCK. I move to amend the motion of the Senator one day when there was a probability that the bill would pass from Minnesota. I move that when the Senate adjourn to-day that wheat had declined 3 cents a bushel on the Chicago Board it adjourn to meet on Monday next. That motion, I believe, has of Trade. precedence. The very fact that anything of that kind could occur shows Mr. SANDERS. I ask the Senator from Minnesota to be kind &h~ necessity of such a law. But now, when the beliefistha.tthe enough to yield to me to call up a bill. 1892. CONGRESSIONAL RECORD-SENATE. 6585 Mf. WASHBURN. This is not a motion to adjourn. I will The amendment was ordered to be engrossed and the bill to . yield to the Senator from Montana when it is disposed of. be read a third time. · Mr. SANDERS. All right. The bill was read the third time, and passed. The VICE-PRESIDENT. The question is on the amendment Mr. HARRIS. I move that the Senate request a conference offered by the Senator from New York to the motion made by with House of Representatives on the bill and amendment. the Senator from Minnesota. The amend:QJ.entis that when the The motion was agreed to. Senate adjourn to-day it be to meet on Monday next. By unanimous consent, the Vice-President was authorized to The amendment was rejected. appoint the' conferees on thepartof the Senate, andMr. HARRIS, The VICE-PRESIDENT. . The question recurs on the motion Mr. MCMILLAN, and Mr. PERKINS were appointed. made by the Senator from Minnesota, that when the Senate ad EL RENO, OKLA. journ to-day it be to meet at 11 o'clock to-morrow. The motion was not agreed to. Mr. CAREY. I ask unanimous consent for the present consid eration of Order of Business 554, Senate bill 2839. MARYLAND AND WASHINGTON RAILWAY. The VICE-PRESIDENa-'. The title of the bill will be stated. Mr. SANDERS. I ask unanimous consent to call up the bill The SECRETARY. A bill (S. 2839) for the relief of the inhabi (H. R. 4667) to incorporate the Maryland and Washington Rail tants of the town of El Reno, Okla. way Company. Mr. BERRY. I object to taking up the bill at this hour of the By unanimous consent, the Senate, as in Committee of the evening. Whole, resumed the consideration of the bill. · The VICE-PRESIDENT. Objection is made; and the ques Mr. SANDERS. The bill has been read and there was an tion recurs on the motion of the Senator from Maine [Mr. FRYE] amendment pending to it offered by myself. The Senator from that t:Q.e Senate proceed to the consideration of executive busi Tennessee [Mr. HARRIS] who has charge of the bill signified the ness. other day his willingness, if I would withdraw the amendment Mr. HISCOCK. I wish the Senator from Maine would yield which I had presented, to himself propose another amendment. to me to call up a bill. With that action I will be content if I can have leave to with Mr. FRYE. If I yield to anyone I must yield to the Senator draw the amendment which I offered. from Nebraska [Mr. PADDOCKJ, who came to me some time ago Mr. HARRIS. My suggestion was that I would not object to and made a similar request. · it, but I will offer the amendment. I believe I have a memoran FORT RANDALL MILITARY RESERVATION. dum of it here. It is to that part which limits the issuance of stock, that it shall be so modified as to provide that no greater Mr. PADDOCK. I ask unanimous consent of the Senate for amount of stock shall be issued than the actual cost of construc the consideration of a bill which is of local concern. · tion, equipment-, and procuring the right of way. Mr. FRYE. I yield to the Senator from Nebraska. Mr. PADDOCK. That is verv kind of the Senator. I ask The VICE-PRESIDENT. · The amendment proposed by the unanimousconsentforthe presenfconsiderationof Order of Busi Senator from Montana is withdrawn. The. amendment moved ness 805, being Senate bill 2931, in relation to a matter in my by the Senator from Tennessee will be stated. own State, which is approved by the Secretary of the Interior The SECRETARY. In section 12, line 2, strike out the word . and the Secretary of War, and carries the unanimous r.:port of '' and" and insert '' the" before the word '' amount; " after the the Committee on Public Lands in its favor. word "amount" strike out "not to exceed 10 per cent;" and in By unanimous consent, the Senate, as in Committee of the line 3, strike· out "over the" and insert "of the actual;" so as Whole, proceeded to consider the bill (S. 2931) to provide for to read: the survey and transfer of that part of the Fort Randall military SEc. 12. That the said company is hereby authorized to issue its capital. reservation in the State of Nebraska to said State for school stock to the amount of the actual cost of construction, equipment, and pur chase of right of way and ground necessalj' for its proper working. purposes. The bill was reported from the Committee on Public Lands Mr. HAWLEY. I should like to add to the provision these with an amendment to strike out all after the enacting clause words: and insert: Which sum shall fu•st be ascertained and authorized upon petition therefor That the odd-numbered sections in the portion of the Fort Randall mili to the supreme court of the District of Columbia, under such rules and reg tary reserv~tion situated in the State ot Nebraska, after the same shall have ulations as the chief justice and judges thereof shall prescribe, emcient to been surveyed as herein provided, may be selected by the State of Nebraska limit the stock of such corporation in the.aggregate to the actual necessary at any time within one year after the filing ot the omcial plats of survey in cost thereof, and 10 per cent added. the district land omce as a part of the lands granted to said State as s::hool indemnity for school lands lost in place under the provisions of "An act to Mr. HARRIS. I have no objection to the amendment being provide for the admission of the State of Nebraska into the Union," ap proved February 9, 1867: Provided, That no existing laWful rights under any incorporated here and now, but I will state to the Senator that of the land laws of the United States providing for the disposition of the precisely the question involved was considered by a conference public lands shall be prejudiced by this act: And provided further, That said committee of the two Houses this evening, and with some slight lands shall be accepted by said State of Nebraska in full satisfaction of law ful claims now existing, or that may hereafter arise, for school-land indem modifications of phraseology the principle was incorporated by nity for a corresponding number of acres, upon assignment of the bases of the unanimous action of the conference committee. This clause the claims by description and selection in accordance with the regulations being amended, it will go to conference and the subject-matter of the Interior Department within the period ot limitation aforesaid; such selections to be equally distributed, so far as practicable, among the several will be considered. I have no objection, however, to the Sena townships. · tor's amendment. SEc. 2. That the even-numbered sections, and all of the odd-numbered sec Mr. COCKRELL. Thewords "andlOpercentadded," should tions in ·said reservation not selected under· the provisions of section 1 of this act, shall be open to settlement under the homestead law only. not be in. SEa. 3. That the Secretary of the Interior be, and is hereby, authorized and Mr. HARRIS. No, not 10 per cent added. directed to cause the lands embraced in that part of the said military reser Mr. CHANDLER. That has been left out. vation of Fort Randall in the Sta~ of Nebraska to be regularly surveyed by The VICE-PRESIDENT. The amendment to the amendment an extension of the public surveys over the unsurveyed portions of the same. will be stated. · .. The amendment was agreed to. Mr. HAWLEY. I have read it. After the word" working," The bill was reported to the Senate as amended, and the in line 4 of section 12, add what I have read. amendment was concurred in. Mr. FRYE. I should like an executive session. We might The bill was ordered to ba engrossed for a third reading, read have one while the Senators are arranging the amendment. the third time, and passed. Mr. HAWLEY. The Senator from Tennessee informs me that On motion of Mr. PADDOCK, the title was amended· so as to substantially this amendment is already contained in a proposed read: ''A bill to provide for the survey and transfer of that part a{}t, or do I understand that it will be done in conference? of the Fort Randall military reservation in the State of Nebraska ', Mr. HARRIS. Not in this bill, but the principle will be in to said Statefor school and other purposes." serted when it goes into conference just as we have agreed to it in another bill. IMMIGRATION AND CONTRACT LABOR LAWS. Mr. HAWLEY. On the assurance that this is likely to be Mr. CHANDLER. I ask unanimous consent of the Senate for done, or is certain to be done, as has just been done in a previous the prasent consideration of Senate bill 3240, Calendar No. 820. conference, I will withdraw the amendment. By unanimous consent, the Senate, as in Committee of the The VICE-PRESIDENT. · The amendment to the amendment Whole, proceeded to consider the bill (S. 3240) to facilitate the is withdrawn. The question is on agreeing to the amendment enforcement of the immigration and contract labor laws of the of the Senator from Tennessee [Mr. HARRIS]. United States. The amendment was agreed to. The Secretary proceeded to read the bill. The bill was reported to the Senate as amended, and the amend · Mr. CHANDLER. In line 8, of section 2, I move-ro strike out ment was concurred in. the words "oath or affirmation" and insert the word "decli.ra- 6586 CONGRESSIONAL RECORD-SENATE. JULY 22, tion;" and in line 9, after the word "or," to insert the word The VICE-PRESIDENT. The amendment will be stated. "of." The SECRETARY. In section 2, line 9, after the word "of- The VICE-PRESIDENT. The amendment will be stated. fleer," it is proposed to strike out" next" and insert "first or The SECRETARY. In section 2, line 8, after the words " and second;" and in the same line, after the word " command," to the," it is proposed to strike out "oath or affirmation" and in- strike out "taken before" and insert "attested by;" so as to sert "declaration;" and in line 9, after the word "or," to insert read: the word ''of;_" so as to read: Each list or manliest shall be verified by the signature and thedeclaration Each list or manifest shall be verifl..ed by the signature and the declaration o~ th~ master or commanding omcer 01." of the om.cer first or second below of the master or commanding officer or of the officer next below him in com- him m command, attiested by the United States consul or consular agent at mand. etc. the port of departure, before the sailing or said ve sel. Mr. GORMAN. This is probably a proper bill, but I suggest The amendment was agreed to. to the Senator that at this hour of the evening, and with a thin The reading of the bill was resumed. Senate, it is hardly right to consider such a bill. . Mr. CHANDLER. In section 3, line 3, after the word" make," Mr. CHANDLER. If the Senator will allow me, I will state I move to strike out" oath or affirmation" and inEert :. declara that this bill, although of some importance, is not a bill which tion;" so as to read, "and make declaration in like manner be involves any difference of opinion either: in the House or Senate. fore said consul or consular agent." It is unanimously agreed to by the Senate Committee on Immi- The amendment was agreed to. gration and by the House Committee on Immigration. Under The reading of the bill was resumed. those circumstances I hope the Senator will allow the bill to pass. Mr ·CHANDLER. In section 8.line 5, before the word ''kept," _ It has been carefully examined by every member of the Senate I move to strike out the words' placed, and" and insert "fur committee and by every member of the House committee. I tis niahed to be;" and also in line 11, to strike out the word "placed" a. carefully prepared bill, which involves no controversy what- and insert "to be exposed to view." ever with anyone as to anything in it. The VICE-PRESIDENT. The amendment will be stated. Mr. HAWLEY. It occurs to me to ask whether the bill has The SECRETARY. Insection ,line 5, before the word" kept," been submitted to the commissioners of immigration or the it is proposed to strike out "placed, and '' and insert "ftu·nished owners of the great ships who are familiar with the subject; for, to be;" and in line 11, strike out the word ''placed" and insert as I heard the long list of questions re.a.d, I could not help think- "to be exposed to view;" so as to read: ing how, by whom, and at what expenditure of time these ques- SEC. 8. That all steamship or transportation companies, and other own- . h uld all b d d th bl k 11 fill d? I th' k ers of vessels, regularly eugaged in transporting alien immigrants to the t 10ns s o e answere an ese an sa e · ln United States, sha.ll twice a year file a certificate wlth the Secretary of the some of the vessels would have to wait two or three weeks be- Treasury that they have furnished to be kept consplcuously exposed to view fore they could get started. in the om.ce of eacb ot their agents in foreign countries authorized to sell · t to th S t f C emigrant tickets, a. copy of the law of :March 3, 1891, and of all .subsequent M r. CHANDLER· I d es1re o say e ena or rom on- laws of this country relative to im'tnigration. printed 1n large letters, in the necticut that the ·bill has been submitted to the steamship own- language of the country where the copy of the law i to be exposed to view, ers to whom he refers, and they have not made strenuous oppo- and that they have instructed their agents to call the attention thereto or sition to it. If, as the Senator says, it will take three or four persons contemplating emigration before selling tickets to them, etc. weeks for them to make sufficient examination of a dozen immi- The amendment wa'3 agreed to. grants to get started, I should like to ask him how long it will The reading of the bill was resumed. . take us to examine them after they get over here. We exam- Mr. CHANDLER. I move to strike out section 9. ine five thousand in one day; and the Senator seems to think The VICE-PRESIDENT. The amendment will be stated. that it will take three weeks for them to get on board the ship. The SECRETARY. It is proposed to strike out section 9~ as Mr. HAWLEY. I am not making any special fight againEt follows: - the bill. . SEC. 9. That the temporary removal of alien immigxa.nts prior to exam- Mr. CHANDLER. I do not understand that the Senator is. ina.tion. provided tor in section 8 of the a.ct of :M:a.rch 3, 1891, shall be made \, fills t th bl nk ? in all case of arrivals at the port of New York where the number of im- M r. HAWLEY• W uO ou e a 8 • migrants upon one vessel exceeds one hundred and fifty; and 1t shall be dis· Mr. CHANDLER. The steamship companies are to bring a cretionary with the Commissioner of Immigration to examine a smaller manifest of their passengers, just as they bring a manifest of number of 1mmigrants on board the vesseL their merchandise. The amendment was agreed to. Mr. HAWLEY. With all these questions to be answered? The reading of the bill was resumed. Mr. CHANDLER. They are to answer them, and the clerks Mr. CHANDLER. In section 10, line 1, aJter the words" after on the docks will fill up the blanks. When the blanks are filled the," I move to strike out" 30th day of June, 1892," and insert up, not more than thirty names on a. blank, they are taken on "1st day of January, 1893." board and the passengers go over them, and when the ship The VICE-PRESIDENT. Th.e amendment will be stated. reaches the dock the papers are handed to the inspectors. It is - The SECRETARY. In section 10 line 1, after the word" the," the simplest process in the world. There is no difficulty in eon- it is proposed to strike out" 30th day1 of June, 1892," and insert forming to it; and, as I say, the steamship owners, while they do "1st day of J'anuary, 1893;" so as to read: not care to do this, have made no strenuous opposition to it. SEc. 10. That a.fter the Ist day of January, 1893, au exclusive privileges or Mr. HAWLEY. The idea is a correct one. Looking at this exchanging money, transpoTting pa. engers or baggage, or keeping eating matter some time ago, I thought it probably could be done by houses. and a.ll other like privileges in connection with the Ellis Island im- · f th th h migrant station, shall be disposed of after public competition, subject to our consu1 s, 11.n d then we could be cert a1n o e oroug ness ssuc~hbeco.nditions and llmitations as the Secretary of the Treasury may pre- of the returns they made. Of course that will involve some ex- · u penditure. I do not see why a consul, who takes great pains to The amendment was agreed to. examine and certify to a bill of lading, would not take as much The readjng of the bill was resumed. pains with this. M CH N LER · 3 The VICE-PRESIDENT. Is there objection to the consider- r. A D · InsectlOnll,line 'beforetheword ''days," ation of the bill? I move to strike out "thirty" and insert" sixty." Mr. CHANDLER. I no notunderstand that the Senator from The VICE-PRESIDE!II'"'T. The amendment will be stated. l [M G ] b . ts- The SECRETARY. In section 11, line 3, before the word" days," Mary and r. ORMAN ° Jec · it is proposed to strike out" thirty" and insert" sixty;" so as to Mr. HAWLEY. I make no objection. make the Eection read: Mr. GORMAN. I did not make a. formal objection, but I saw •tt thi id f SEC. lL That this act shall not apply to Chinese persons, and shall take tha t there was not a memb er o f t h e comiDl ee on s s e o efrect as to vessels departing from foreign ports for ports wit.hin the United the Chamber present, and at this hour of the evening I thought States after thirty days from the passage or this act. it was hardly proper to consider so important a bill. Mr. CHANDLER. I make the suggestion that, if the Sena.- The amendment was agreed to. tor will allow the bill to be read through and allow one or two The VICE-PRESIDENT. The reading of the bill is concluded. amendments to be adopted, 1 shall not ask to have the bill passed The question recurs on the motion submitted by the Senator from to-night. Maine [Mr. FRYE] that the Senate prooeerl. to the consideration of executive business. . Mr. GORMAN. I make no objection to that course being pur- Mr. CHANDLER. I ask the Senator fl'Om Maryland if he su;ie VICE-PRESIDENT. The question is on the amendment would prefer not to have this bill acted on to-night? proposed by the Senator from New Hampshire [Mr. CHANDLER], Mr. GORMAN. I think it had better go over, under the cit~· which has been read. cumstances. ~he amendment was agreed to. Mr. CHANDLER. What will be the position of the bill? The reading of the bill was resumed. The VICE-PRESIDENT. The bill will be returned to the Mr. CHANDLER. In section 2, line 9, I move to strike out Calendar without prejudice. the word ' 'next" and insert ''firstor second;" and strike out the I JAMES SMITJ;I. words" taken before" and insert the words" attested by." Mr. DUBOIS. I ask the Senator from Maine to yield to me 1892. CONGRESSIONAL RECORD-SENATE. 6587 that I may ask for the consideration of Order of Business 1034, The motion was agreed to; and the Senate proceeded to the House bill 4809, a pension bill. consideration of executive business. After seven minutes spent Mr. FRYE. I yield for that purpose. in executive session the doors were reopened, and {at 6 o'clock There being no objection, the Senate, as in Committee of the and 7 minutes p.m.) the Senate adjourned until to-morrow, Sa~ Whole, proceede'd to consider the bill (H. R. 4809) granting a urday, July 23,1892, at 12 o'clockm. pension to James Smith. It proposes to place on the pension roll the name of James Smith, formerly orderly sergeant of Company F, Sixth Regiment United States Infantry, in the NO~HN ATIONS. Semmole Indian war, at $20 per month. The bill was reported to the Senate without amendment, or Executive nominations 1·cceived by the Senate July 22, 1892. dered to a third reading, rea-d the third time, and passed. SECRETARY OF LEGATION. CARACAS AWARDS. Charles F. Markell, of Maryland, to be secretary of the lega tion of t~e United States to Brazil, to fill a vacancy. Mr. HISCOCK. I ask unanimous consent for the considera tion of Order of Business 733, being the bill (S. 2454) for the ap CONSUL. plication of the accretions of the Caracas awards of 1868 to the Adam Everly, of Pennsylvania, to be consul of the· United new awards made in 1889 and 1890. I hope the Senator from States at Birmingham, to fill a vacancy. Maine will withhold his motion until this bill can be considered. Mr. FRYE. Very well. . ASSISTANT COLLECTOR OF CUSTOMS. Mr. COCKRELL. How much is involved in this bill? John Ramsey, of New Jersey, to b3 assistant collector of cus Mr. HISCOCK. Nothing, as I believe, to the Government. toms at J ersey City, N. J., in the district of New York, in the Mr. COCKRELL. Have we not some funds, and does not this State of New York, to succeed Thomas H. Kelly, removed. take it out of the Treasury? Mr. HISCOCK. The bill has been unanimously agreed to by PASSED ASSISTANT SURGEON, MARINE HOSPITAL SERVICE. the Committee on Foreign Relations. The fund ~hat is proposed Assistant Surg. Gregorio M. Guiteras, of South Carolina, to to be distributed is the interest earned on the money paid by the be a passed assistant surgeon in the Marine Hospital Service of Venezuelan Government before the money was distributed to the United States. liquidate the claims. . REGISTER OF LAND OFFICE. The VICE-PRESIDENT. Is there objection to the present consideration of the bill? Thomas Frazier, of Placerville, Cal., to be register of the land There being no objection, the Senate, as in Committee of the office at Sacramento, Cal., vice Edmund W. Roberts, deceased. Whole, p• oceeded to consider the bill (S. 2454) for the applica- tion of the accretions of the Caracas awards of 1868 to the new awards made in 1889 to 1890. CONFffiMATIONS. The bill was reported from the Committee on Foreign Relations~ Exreutive nmninations confirmed by the Senate July 22, 189B. with an amendment, to strike out all ·after the enacting clause and insert: ENVOYS EXTRAORDINARY AND MINISTERS PLENIPOTENTIARY. That the Secretary of State be, and he is hereby, directed to ascertain and A. Loudon Snowden, of Pennsylvania, now envoy extraordi settle the amount expended by this Government in respect of the convention of April 25, 1866, and of the eommission thereunder, and of the convention nary and minister plenipotentiary of the United States to Greece, or December 5, 1885, and the commission thereunder,a.nd deduct the same form Roumania, and Servia, to be envoy extraordinary and minister the accretions upon the money paid to this Government by Venezuela, and plenipotentiary to Spain. the balance of said accretions he is hereby authorized and directed to apply to the payment of the new awards of the Washington Commission nnderthe Truxtun Beale, of California, now minister resident and con treaty of December 5, 1885, and to credit the Government ot Venezuela. under sul-general of the United States to Persia, to be envoy extra said new award on account of said accretions diminished as aforesaid, as ordinary and minister plenipotentiary to Greece, Roumania, and well as with the principal of said funds. Servia. The amendment was agreed to. Andrew D. White, of New York, to be envoy extraordinary The bill was reported to the Senate as amended, and the amend- and minister plenipotentiary of the United States to Russia. ment was concurred in. , CONSULS. The bill was ordered to be engrossed for a third reading, read the third time, and passed. Darley R. Brush, of South Dakota, to be consul of the United The VICE-PRESIDENT. The amendments reported by the States at Messina. committee to the preamble will now be stated. Charles August Vortriede, of Ohio, to be consul of the United The SECRETARY. The committee report to strike from the States at Horgen. preamble the following clauses: Cyrus W. Field, of New York, to be consul of the United States at Brunswick, Whereas it was provided in the treaty of De~mber 5,1885, that the Ven ezuela. Government should not be reimbursed or credited for payments here John A. Barnes, of Illinois, to be consul of the United States tofore ma.de upon such of the Caracas awards as Il!!~ht be entirely annulled at Chemnitz. in the rehearing of the original claims by the said vv ashington Commission, certain of which Caracas awards were so a.nnnlled, a.mounUngtomore than Carl Bailey Hurst, of the District of Columbia, to be consul of $550,000, on which the Department of State had paid two dividends of 7 a.nd8 the United States at Catania. per cent respectively, out of fnnds received from the Venezuelan Govern ment; and SURVEYOR OF CUSTOMS. Whereas the said Washington Commission allowed interest on nearly all the claims on which new awards were rendered against Venezuela., from the John C. Hotchkiss, of Iowa, to be surveyor of customs for the time when the cause of action arose in each case to the close of the said port of Des Moines, in the State of Iowa. Commission's term of omce (September 3, 1890), and the said new awards bear interest from that date by the express provision of the said treaty: POSTMASTERS. Therefore. Will A. Sessions, to be postmaster at Friars Point, in the county The amendment was agreed to. of Coahoma and State of Mississippi. Mr. COCKRELL. The preamble needs to be further amended James F. Steinbeck, to be postmaster -at Lake City, in the by striking out the word" and" at the end of the first clause, county of Hinsdale and Stat9 of Colorado. which is the only one remaining, and inserting the word ''there James T. Penn, to be postmaster at Harrison, in the county of fore." Boone and State of Arkansas. The VICE-PRESIDENT. Thatamendmentwill be considered William L. R.obson, to be postmaster at Williamston, in the as agreed to in the absence of objection. county of Ingham and State of Michigan. Jabez Wright, to be postmaster at Huron, in the county of DEALL~G IN OPTIONS AND FUTURES. Erie and State of Ohio. - Mr. FRYE. I now renew my motion for an executive session. David B. Howerton, to be postmaster at Hallettsville, in the The VICE-PRESIDENT. Before submitting the motion of county of Lavaca and State of Texas. the Senator from Maine, the Chnir will lay before the Senate the James D. Fayman, to be postmaster at Shepherdstown, in the unfinished business, the title of which will be stated. county of Jefferson and State of West Virginia. The CHIEF CLERK. A bill (H. R. 7845) defining "options" Stephen R. Choate, to be postmaster at Newark, in the county and "futures," imposing special taxes on dealers therein, andre of Newcastle and State of Delaware. quiring such persons engaged in selling certain products to ob Lewis D. Mitchell, to be postmaster at Ontonagon, in the tain license, and for other purposes. county of Ontonagon and State of Michigan. The VICE-PRESIDENT. The question now is on the motion John Wesley L ee, to be postmaster at Towson, in tho county of t he Senator from Maine. of Baltimore and Stab of Maryland.