The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1878-05-09
(Signed). .

Is signs similar contract, using the
word ''sold'' instead of the word
''bought.'' The above contract calls
for No. 2 Spring wheat. A provision
contract is similarly worded, only the
kind of property contracted for is
named.
BY the above contract it will be OBJ
served that the seller contracts posi-
lively to deliver a specified amount of
particularized property. The seller re-
serving the option as to time of deliv-
cry, on any day he may elect between
2:3O p. M, on May 31st, and is the only
part of the contract to which the word
"Option" or its effect in any manner
pertains. The property must be abso-
lutely delivered before the expiration
of the life of the contract, unless other
wise settled; and in the event of nom
delivery after making a demand upon
B for its delivery, and BIS non-com-
pliance, A can buy the cash property
from anyone having it to sell, and COM
pei B to pay any difference in amount
between such purchase price and the
price named in the contract. There is
no evading or getting around it on the
plea of gambling transaction as is too
commonly supposed. The contract is
just as valid in justice, equity and law,
and as fair as if B had given his con-
tract to A to deliver 100 cord of stone
or 100, 600 bricks to be delivered within
the time specified on the wheat con-
tract. and B is just as absolutely liable
to A for damages resulting from the
non-fulfllment of his grain or provis-
ion contract as he would be if he failed
to deliver the stone or the brick. In a
failure on BIS part to deliver the stone
or brick, in accordance with his con-
tracts, both common custom and law
would justify A in buying either of
these articles at the market price as
soon as said contract had expired un-
fulfilled, and A could by law collect
from b any difference in the price he
might have to pay beyond the named
! price in the contract, and the courts
have of late established by several de-
cisions the absolute legality of time
contracts for the future delivery of
grain and provisions made under Chi
cago '' Board of Trade rules.
These decisions render collectable by
law any Indebtedness arising from deal
ing in contracts for the future delivery
of grain or provisions, uniformed
opinions to the contrary nOtwithstand-
ing. Dealing in futures is, on the part
of commission merchants, business of
unusual risk, unless said commission
houses adhere strictly and inexorably
to the idea of full cash margins abso-
lately in hand'' before trades are be-
gun. Many well-meaning and honor
ably disposed commission men have
been utterly ruined by accepting and
executing orders and drawing time
bills upon their customers tor the re-
quired margins, and, in many instances,
sight drafts have been returned dis
hOnored, where the violent Quotations
of the market have gone largely against
the party ordering, even before . sight
draft could reach the party ordering
the deal made, and to whom it would
be plain that whatever he might pay
would be dead loss. In times Of large
Quotations the market value of grain
may vary &c, &c, 1Oc, 12c, 15c and even
zoe in a single day.
"PUTs AND CALLS"
What are commonly known as '' Puts
and Calls on the Board of Trade are
the pet antipathy of the legitimate
dealer, and are regarded with chronic
aversion by all conservative traders.
They are not recognized as legal by the
statutes of the State, and differences
resulting from trades based thereon are
not collectable under Board of Trade
rules. Within the past year, they have
been exercised from the Rooms of
the g Board and trading in them by
members, in the Main Hail. or during
regular /" Change hours is forbidden un-
der penalty of fine or expulsion. and yet.
however illegal or irregular they may
be, the volume of trading done in them
after the regular session ofthe 8 Board
amounts to hundreds of thousands of
bushels daily, and comprising as many
hundreds of thousands of dollars in
value. There being no legal respon-
sibility they arc made entirely
ION honor" as no member of the
Board can enter complaint against
another member to the directory for
defaulting upon q privilege, I. e., .
"put" or "call," MOI upon any deal
based upon a privilege" To many
of our readers these terms are mean
ingless without further explanation.