TO PREVENT SALE OF COTTON AND GRAIN IN FUTURE MARKETS 35 
you, with, of course, certain variations as required by the nature of 
the commodity and the custom and methods—— 
The CHAIRMAN (interposing). Do you think, Mr. Palmer, that 
there is any reason why the same act should not apply to cotton that 
applies to grain; and, if they should be handled differently, why? 
Mr. PALMER. Do I understand, sir, that your question is whether 
I think that in the bill that is before us differentiations should be 
made with respect to the application of it to grain and cotton? 
The CHAIRMAN. Yes; if you think so. 
Mr. PALMER. No; I do not see any reason why both of these should 
not be subject to the same act. I can not see why there should be any 
difference between cotton and grain. I know very little of grain. 
The CHAIRMAN. Would it be a good idea, do you think, if we made 
the grain futures act apply to cotton as well as to grain. If it can not 
be worked under the same law, why not? What is the difference that 
would make it necessary to have two different laws? 
Mr. PALMER. I should like to study that question, Senator, and 
discuss it with some of my superiors, because it involves a question of 
policy. 
The CHAIRMAN. This bill that is before us now applies equally to 
cotton and to grain? 
Mr. PALMER. Yes, sir. 
The CHAIRMAN. Heretofore we have had different laws applying? 
Mr. PALMER. Yes, sir. 
The CHAIRMAN. I want to know whether there is any reason why 
we should have different laws, and if we should, what difference is 
there that makes it necessary to have the two laws? 
Coming down, now, to this bill, tell us what you think about it. 
Would it work? Do you believe it is good legislation? 
Mr. PALMER. I do not know whether it would work or not, and I 
make you that rather unsatisfactory answer for the reason that in 
dealing with a question of this kind we are dealing with something 
we can not speak about without trial. We can not go into a laboratory 
and try this thing out and see what would happen. Any change 
would be an experiment on the patient himself. 
The CHAIRMAN. In the cotton market, I admit there are interests 
that think we ought to pass legislation in regard to it, but I think a 
good many honest people think there is something wrong with our 
present marketing facilities. Do you agree with that idea? Are 
there evils that ought to be remedied; and if so, what are they, and 
how can they be remedied, and does this bill do it? 
Mr. PALMER. Well, I think there are some things that need cor- 
rection. 
The CHAIRMAN. What are they? Tell us about them. 
Mr. PALMER. I do not know what they all are. 
Senator CARAWAY. Short selling is one of them, is it not? 
Mr. PALMER. Short selling? 
Senator CARAWAY. Yes. 
Mr. PALMER. I should say excessive short selling. 
Senator RANSDELL. I did not catch that. 
Mr. PALMER. Excessive short selling.