, 1870-02-19
MONETARY AND COMMERCIAL,
MONETARY,

MONETARY.
FRIDAY EVENING Feb 1s.
The following communlcst, Is in relation to
Ho1e concise and sat1factoty method Of sd1utt-
tcg al option contra:!s IN grssn, ana the general
pHrc1plea Of which might cersa,nfy be applied to
the settlement Of cath rsdea lnstesd OF tne psoa.
ens cumoetaome And l1e1uYenieus p2n Of toilec~
tons and deliveries:
Editor Chicago 1S.auas:
The or}ecta OF the following prupsted plan foe
ume con,rscts ID grain. aud sestie dtdefenoes, s5
sales aLn purrhasts balance Ia Auount TAls d
Include purchases on s1leg mAde 1s any rHA to
SoVtS any po1non uf hhots OF loogs under the fol-
loving
Evtf1 rerhher to make return daily Of ,hll ,rau4-
actions. Al Fer form. 1hste the pnfchaacs Ana
aale1 a1e even tor the same optton} casttnod
check for hatance one, to accompany tho return ID
ca.e Of sost, ah6, IN csec of psoft member re-
account.
Were the p11ehA1es and sales do not balance,
margin Of 10 per cent sn2ll be deposited xtth
the 1trurn. on al thort asles or long pttcnAsea,
tess OF pl1s the amount tnAt may b dao % TIC
itsde9 that balat ca III AMI Should tbe margin
g. b. tdSst &c ps5 esni q mor ~ Additional nv
Oh Tho c111ent matfet prizes. Naeu tbs mkkns
thaA be per CERT Or more % tafor Of
draw : per cent Of sa,d margin, pro11dnd
there u full 10 per cent margin upon ali tradae
opec 10 A., Rrn,p,-etsl IoI orlg1nai margin 70 b
ccLS dered ~ nAdc when retnrn u nApded In.
he'1Ers sent in, unAccompanled pJ caeck, or fof
tnadequate amount {Ios nAtRtn or difference due,
'5o!e ss 11@s 70 o. 1eas1sa =
VII be sf1xed penalty Of 4lo. Failure TO MAKE
any tet11n rs pensltJ.-a depoa,t OF 500 to be
ssrpa to be made wetkly o. monthly. Snd Wnen
neAtly exhausted IN addIuoeM depoilt Of ike
amount 10 te made
cents for 500 buhhe-A Fine Of SO for every tna.
tF1.a1 error. f1nn Of Is for use Of wrong form
Aesntts % b. made daily At O'Clock IN sao aistI-
otenlrg ontsite to receive ali late re:urn5 for
fifteen minutes late, each Ct which will be charKed
blythe clee1!Dg Houte At 10 O'Clock i. N. ne1t
uo5niER. -.
IIadsi nsee near the clos,ns time. where
sarpe, shonld be held over for next day, or else
the te:n1n Of trades ahoud be confined 10 those
naoe tbs asJ before.
CASH puzchate aud delivery, would not deliver 10
tie party sold To- but appy 10 ,ne Clearing u11se
1or place, where he would receive II order 70
driver, ~h!cn orocr being returned with the Re-
celsers a1gtAture APPENDED, difference, II anT,
Ntu!d be 4etiltd, ard Ear91n Of both a15er and
t!lstE be Returned. Al The maturity Of cx p.rauo1
Of opt otp, the Gearing House to eend written no.
tct 70 those shoEt, to deFer 70 those lonY a7xcs-
f,u naues. amount prices, DC, And on rst1rn
q s1d Eot!ee u the CLEARING Rouse, aao z.pg de-
md margins fetLtned- .....
MtnteTA long, aud dealttpg to have grain deliver.
co sd 70 'seD asa 70 noti!i.g ne Clearing Hoase
applied tor. GleA1srK House to be under the su-
pesvtaon Of eonu veil established bank or banker.
ofnceE Of The Board Of Trade, ~ the Treasurer,
Ata 10 bare al The rights and privileges Of tia
general rules OF the Boatd Of Trade In reference
10 ma1R'rs, sAma 70 10 a. binding u between
NAL bels-
Members carrying or buying cash wheat again,
sales for lnturd delivery may t1po< grain on
th1OdF i ofhNf n Ff 7Aa hpS
ntefest 4no1ld be charged On the amount Of mar
g1D required.
n.xt or any oiotr optlon IN equal qukntiues need
uoi put up uasVlp, 10 long a. tns1I pulchaaes tor
tnla month arc not covered BY sales Of some op-
t1on. But betorn OF II tlna OF covering aAld p1r-
Cb2se1 OF n their expiration, margin must b4 pu,
up on next rnonth's or other option ksles, to
corresponding amoupt with tbs trades msde 70
cover ibis months purroAseA No di1eEcnces
would be msde by the Clearing aoose On these
puICh4tee Ct k11e9 Of dldefunt options Qntu escn
spstop ~ u coss1Hd y Ike option: hut shonld
olrerent opuona, DC nus, deposit said dlnerenes
In lieu OF margin.
All o,hcl atisciss Of prodrca, tn which there arc
op,ion uxdes, sucn ~ potR, LARA, 4c., might proo-
aoty uIe 5he Geastr2 1ioase when once 1t u made
to Wo1k smoothly.
Thus the C1eszireIHou.e guarantees III shles and
purchases; ra5n auo collects dlGtfencea Al tE2dca
sic ade 10 coFer or calcel, wltoou. waiting for
three month";; taxes i1dlyiduM traders " our Of
the gsp:' relieves them from calling mugtls;
cloAet lrtdes = !th strong snd weak Aoatea alike,
which, Nheo ellosed TO run TO maturity. olten re.
so1t In failure and consequent loas to both; dis
rertes Nsn all de1yer3 except On tzzn actions
oue nsa =, xi ~ s, ~ ,n ,Sa
fus1or, and, o1tentneA, ioaa Of one CALF cant q
bufntl. low attendant on deuTerep and calls Tor
nafSlns aid cHan securities only, I1on those
whs se accounts DO not balance, OF, II olher
words, who are short or lotg.
II u cot denied that thcse IS SOUS FISK IN thus
ISL al ft7f t. kdJI.
gstes will DC greatly lcAs than 1t present, and that
the ieee, aid Ines. snd tntkfet on margins Will
neIe II no cou!pepsAte for fuco losseA.
The secrr1tJ l,e4 In the depo2t ul margin being
nade At time Of sac and purthase. and in net
waiting u now I'LL tee EnArktt AdF11ce4 or de-
clues 4 weak member nbd!nE pr cent alp
per ceLt Ni he Ter5 apt 10 cover, and often ttnes
IN TO dong prevent greater loss Win sudden
gins na, nearly or wholly disappear ou one slde,
bnt tn this event the probabilities arc that thh
bulE Of thost wnpse ma<gt1a hare disappeared,
o.es ru,n their sIaaes On = small pei cent, often
on trscpou OF one pr ctht, OF for \ brok esnge-
the tucrease TO tne nnspess under thu eJe5era
would be lmNense. The Reduction IN the amount
GcAed up III margins u estimated q - per oeot.
r. F. OLDERsHAw.
Itis nos claimed, We believe, that the foregoing
pan Ia not susceptible Of amendment, but II IA
made pubic for The purpose of ellcittug comment
a1d tuRteAt1ort from all E1s1n dealers who feel an
ttnfe1& IN CtsAElItnR And ptrtectlkR tAe 1acntits
fstttade.
The local money market continues IN very
qu.et COZ dltioo, the deEands for losns being
rulher light because tho bankt are indlspottn 10
expand much more Dsposlts have increased
during the past two weeks, but loans haze in-
ctessed IN proportion, And As the balances OF lhe
etchants have been Increased they have been
loaned out to the g1s1n d.alets and packers until
both loans and teposits ase above the average
cnncrcJ and exchange are both scarce. The
supply Of produce bills On the market II light be.
czuae tie shipnenls are light and lof the eama
rcaion currency "a sc4sco, because In default Of
exchange With which 10 par Eastern Indebtedness
the currency has oeeu gradually drawn a1 70 the
Eastern markets where Ii u now superzoQpdant,
while the bulk Of The capital Of this section Of the
ecun1J is In grain and other products held hero
Exchznse so.duttxeen banks to-day n 7ae TO SIC
pr II .ol0 discount Al the counter bankers Gtu
al par and buy At l-1o discount
Al the Stock Board. 10 day, Ralea were:
+ ehareA Mefcn1pta' InG Co1N