The farmer and mechanic. [volume] (Raleigh, N.C.) 1877-1885, 1882-12-13
Evils Of Speculation In Futures.

The Senate committee which Is in
vestigating the subject of corners
and gambling methods of all kinds in
food products held a session at the
Metropolitan Hotel yesterday. Mr..
Francis b. Thurber was the only wit
ness at the morning session. Sergeant
at-Arms Cowing has subpGnaed several
witnesses for to-day, and among those
expected is the Rev. Henry Ward
Beecher. Mr. Beecher has been preach
ing upon cognate subjects recently, and
some of the committee are desirous of
hearing him describe tho effects of thi.
sort OF gambling upon the morals OF the
community.
In the course Of his testimony Mr.
Thurber said The classifying or
grading Of goods has given rise to
system of dealing in ''futures,'' which
means much more than sales for future
delivery, and, in reality. indicates gi
gantic system of gambling which has
infected a large portion Of the commu-
nifty; it is not only demoralizing to
those who participate in these practices,
but it affects the material interests of
both producers and consumers, as we'll
"a those of legitimate traders, by torcib-
ly setting the clock hands of value back
and forth and alternately making all Of
these classes pay tribute to the combi-
nations which manipulate first one and
then another of the great staples which
enter into daily consumption.
THE STANDARD OIL COMPANY,
The Standard Oil Company is an ex-
ample, said the witness. 1t is a cor
poratlon which, according to testimony
recently given in Philadelphia, began in
1872 with a capital of 81, 900, 900, which
was subsequently increased to 5000
0QO. AMI on this latter capitalization it
paid dividends in 1880 amounting to
sI0, ,32l, ,Sl2, and it practically controls
and fixes the value TO the consumer on
staple ranking third in the list of our
exports; through its speculative manip-
ulations it has within few weeks more
than doubled the pri of crude oil, and
its profits thereby are variously esti-
mated at from a2h, 900, 900 to a40, ,000,-
900; speculative combination raised
tbs price Of wheat In 1879 from &l.02
per bushel III August to sl.A In De-
Gem Der. and at various times since the
same system has alternately raised and
depressed prices to such an extent as
to seriously demoralize legitimate trade
300 vessels at one time being idle in
the port of New York waiting cargOe.,
which the greed of the spectators
would not permit tu be loaded and
many of which were obliged to seek
cargoes elsewhere; another combina.
ton obtained control of most of the
available supply of pork in the country
and then ADVANCED prices so that the
consuming public had to pay fifty per
cent more for its supplies these trans
actions were undertaken by men who
had first attained great wealth largely
through special tavors from railroad
corporations ; these sO-called corners
are usually accompanied with much mis-
representation, and, indeed, false re-
ports are part of the stock in trade al
those who participate III them,
The witness said he wo Id make cor
ners unlawful and educate public opin-
ion until the law could be enforced he
would limit speculation by prohibiting
the buying or selling on margins there
would OF course, lag said, be great out
cry against thia proposition fiom the
gamblers and brokers, but New Y ork
prospered before these practices were
tolerated and would continue to prosper
without them the same cry was raised
in San Francisco when stock gamb ing
was driven out, but the business of that
CITY had now settled down to a more
healthy and satisfactory state than be-
fore.
BAD EFTECTS on BUsIESS MEN.
Witness said, in answer to Senator
Boyd, that he had not formulated any
measure which he thought would remedy
these evils probably both State and
national legislation would be necessary.
but certainly State legislation would be
the gambling speculation WAS extending
very rapidly and especially in the line OF
food products;it tended to dissatisfy bust
ness men with the legitimate business
they had been brought up to and had q
bad effect generally upon their morale; il
this way it uniavorbly affected the welfare
of society; it made the occupation o.
laboring men less continuous and regular
besides taxing them a. times very heavily
for their necessities; when the coruer
were in operation il raised cur mark,,
above the rated that Euaope would pa,
and other countries filed the orders which
should have been ours.