Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-02-14
TEE GRAIN CALL.
A Minority Report and Protest Against the
System.

In the San Francisco Produce Exchange
the only members of the Committee of
Eleven who voted against the grain call
ystem were Hon. Horace Davis and Mr.
McNear. These gentlemen submitted reasons
for its non adoption and fled a minority re-
port. as follows:
The undersigned, members of your COM
mitsee, dissent from the views of the major
ity, and desire to enter their earnest protest
against the proposed plan. We believe it is
not in the interest OF the legitimate grain
and hazard implied in "Call Board deal
ing mainly in "eptions" and futures"
The result will Inevitably be q fluctuating
and unhealthy market, when the days prices
will not be determined by the rule of supply
and demand, but they will be fixed by 'coT-
ners" and other artificial means of pressure,
which will be brought to bear. We believe
these unnatural and unhealthy combinations
will be ruinous to legitimate business,
whether of export or consumption-and we
think they will work here as they have in
those other cities where such call boards
exist, to the injury of legitimate dealers, by
placing them ut the mercy of the wealthy
SPECTATORS.
Since the foundation of this Exchange, the
small number of failures among its members
has been remarkable. Our business has been
transacted with moderation, and has rested
on the solid basis of the actual commercial
value of the article bought and sold. For
this reason the credit of the produce dealers
has bsen unsurpassed by any class of the
community We believe the system which
your committee now proposes to inangurate
will seriously impair this credit. No man
IL article rastiper an Hctitious and
artificial values can have as sound credit as
if he dealt in real values. Again, the great
diversity of grains in this State and the pecu-
liar methods of handling them are i'll adapted
to the requirements of speculative business.
The crops here are scattered all over the
State, varying much in quality, while each
lot in separate sacks differs in itself. At the
East, on the contrary, large masses OF uni
form grain, graded to standards, are held in
the huge elevators in the great centers Of
trade, and are thus available for speculative
purposes. :.
Moreover, we object to the proposed call
board that it introduces an element of discord
into the Produce Exchange, establishing a
new method of business, with separate rules
and principles of action. So we shall have
two systems OF doing business, running along
side by side, on the same floor, and among
the same individuals, radically differing in
spirit and principle. We tbink they naust
clash, and the experiment will result in DIS
cord and iuharmony. And lastly, we would
respectfully represent that staple article Of
commerce like grain should not be made the
object of gambling speculations that The in
terests involved in it are SO large and extend
I'd that nothing will justify US in max.
ing its value the football of CORNERS
and "cincaes." The farmer, the miller,
tie exporter, the shipowner to say
nothing of the mara diffused intere, is
of the consumers, which include the whole
commuuity-all are interested in maintsining
steady market. resting on the real value OF
grain as determined by the liked laws of COM
merce. On all these grounds we respectfully
beg leave to dissent from the conclusions
reached by the majority of the committee:
First-The condition of grain and the
| methods of handling it in this State make it
| unfit for the business of q call board
Second-The new system will introduce
discord into the Exchange.
Thrills hurts legitimate dealers.
Fourth-The in terests dependent on grain
and breadstuffs are so extended and so i'm
portant, we have no right to make their
values the football of gambling speculation.
We, then, respectfully recommend that the
whole matter committed be indefinitely post
poned. HORACE DAVIS.