, 1876-01-12

mud giving him o general outlook over the
world Mt large.
--s --...s.-. ..ss.......
CprTRACTa on 'pHANGE.
The new administration Of the Chicago
Doartl Of Trade practically pledged itself, at
tho annual meeting Of TINT body Inst Monday
evening, to change in tho ruios affecting
deliveries of produce On time contracts. Tho
business community generally ia satisfied that
somo chaugo Is needed. The rules com-
plainod Of wcre adopted less than ycar ago,
and we're then believed to 10 great improve
ment upon tho old r,1los, under which had
been engineered aomo Of the most gigantic
corners known to history. They probably
would have proven to bo groat improvement
if accoptel in tho spirit in which they wero
frnmed. But they have been used by mnny
members of the Board, whose commercial
record had hitherto boom clear, as plca to
excuse nonfnlfllmont Of contracts which
they could have tonored without much ditfl-
Guilty. The Boara OF Trade thus finds itself
dangerously near to scyila, as con-
sequence of It's efforts to avoid Cha
ryblis. In n praisoworthy attempt to
take away from tho party running
n corner tho power to constitute himself
plaintiff, Judge, jury, aud exacntionor. tho
Board orred III the other direction as was
only natural It is now proposed to ta1se
ground which will lie between the two OK
tromes, and will therefore DO more nearly
equitable ns between buyers and Rellers.
Under tho old ru1os person who sold for
future delivery, and who for any reason Ind
omitted to buy the property till noar tho ex-
piration of tho time allowed for delivery, WIS
often obliged to pay (or settle nt) price die
tatca solely by the other party to the con-
tract,-the said price being sometimes go
high as to DO clearly e1tortionate. Under the
now rules tho party TINS omitting to buy in
till tho last moment Inns declined TO do SO
at all If tho price demanded waa a very little
above TINT at Which tho property could
be shipped to New York without loss on tho
operation. In order to be equitable, tho now
rules should also have contained provision
| under which tho buyer could refuse to ro-
ceivo the property If tho price naued in the
| contract exceeded that at which shipment to
Now York could be mado, without loss, or
the day Of delivery. In tho absence OF this
provision, or rather in presence Of tho other,
the buyer was obliged to pocket tho loss if
the market went against him, and unable to
obtain the profit arising out Of IN upward
turn in prices. Hence, several operators,
innocent OF any intent to run d corner, have
lost hoavily, though tile difference in tho
prices at which they bought md sold the
property gayc them theoretical profit.
The natural result Of this discrimination is
q proponderanco Of sellers, because buyers
hold of, feeling TINT tho chances Of the trade
are against thom. This induces lower pricea
than would otherwise rule, giving tho farmer
less for his produce and diminishing the
amount OF money which ho is nble to invost
in dry goods, groceries, md tho numerous
other articles which our merchants have to
SELL DesidoE this, tho tendency Is to make
the volume Of produce handled in this city
less than it would bo If prices were not artia.
chilly lepresscd as other markets not infre.
quently offer higher figures, especially when
aided by marked determinations In railroad
freights. The lack OF all equitable protection
to the buyer Of grain In this city therefore
tends directly to injure the entire commercial
interests of Chicago.
This is we'll enough understood by thu
leading minds In tho Board Of Trndc. Al
SEQ tho necessity Of change, aud tho onl,
difficulty is to framo rules that cannot be
used by either party to a contract as m un
fair weapon ngnlnst tho other. ltis not impos
siblc that The difficulty will be met by proyid
ing for two kinds Of contracss,-on in whicl
bankruptcy shall ha tho ouly valid e1ouso fo'
failure to recaiye or deliver tho propert,
named in tho contract, aud another form q
agroemont under which either party ma.
torminate tho trado by paying 10 per cent 0
the contract price to the other party bofor
the expiration Of tho tina nomod in the doc
ument signed by both. The lastnamed kim
Of contract has long been in use on III
} French Dourse, aud is understood to 10
satisfactory lnode Of transacting businea
there. OF course It is qually fair to botl
parties.
j