Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-01-29
CORNERS.
perience of the New York Cotton Ex-
change.

How They May Be Preyented-The Ex-
perience of the New York Cotton Ex-
change.
Especial Telegram to the Globe
CHICAGO, Jan. 2S.-The following letter
explains itself:
& Co., Chicago, Ill.-GKNTIEMEN: The
fashion of attemption corners in grain in
your and our produce markets SO fire.
quently has caused us to reflect on the
propriety of your undertaking to correct
the evil, not by legislation but in the same
way as we have on our cotton exchange. Our
law makers, both in the states and at
Washington, are attacking our exchanges
because of the constant occurrence of these
manipulations in the products of the coun-
try, and unless the exchanges exert them
selves to at least prevent these occurrences
and make them much more difficult and
hazardous to their promoters, we fear leg
islation may arise that will seriously
complicate business in them, and perhaps
ruin their usefulness. But even should
legislation not interfere, business
will certainly be restricted as
it now is from the fact of
recent corners in corn and oats, as we'll as
present ones and threatened ones in the
future. In our cotton exchange we were
afflicted with the same epidemic frequent
ly, when VIC were restricted by inability to
deliver auy grade below low middling, and
when we undertook to extend the privilege
of delivery to good ordinary we were at
once met with the assertion by the export
ers that it would kill the business, as they
never could or would buy such contracts
here against sales in Europe. We
carried it, however, over the exporters
heads, but found even then that the pow er
of cliques and manipulators was SO great
that they continued their efforts though
less frequently and SUCCESSFULLY. We then
proposed to include strict ordinary, which
caused still greater howl to go up from
the exporters, but we carried it through,
since which time corners have been gen.
orally less feared by the bears than the
bulls, and trade has largely increased; the
ter contented. We therefore think your
exchange and ours, being the chief ones in
the country, should undertake to
reform their methods in order to their
greater prosperity, increased trade and
greater safety from manipulators from
combined capital. How, then, shall we do
it? Simply by extending the facility of
delivering by making all merchantable
grades of grain deliverable on contract at
their relative values. Now, what would be
the result? You would find all your large
farmers ready to sell the whole or a portion
of what they are growing in the fields, as
our southern planters now sell their cotton,
haying no fears, as they are sure it will
go at some grade and they will get its
value. Let this be done with wheat, corn
and oats, all to be sold on contract on
the basis of No. 2, and any grade above
this, the price to be added on to the price
of the contract, and any grade below this,
the difference in value to be substracted
from the contract price. You will at once
be met with the same objection which we
because your exporters will sell in Europe
and buy their contracts here, and
when the time Of delivery
comes round, if they desire to
export the grain will go into the market
and buy their wheat or corn and at the
same time close out their contracts. taking
the profits or losses on their contracts to
equalize their purchase of spot stuff. We
would suggest that the deliverer should
give two OF three days notice of intention
to deliver. We give five days on cotton.
Depend upon it your market will be left
to itself and you will be left to eat one
another up unless you take prompt action
in the matter. 1t is now being talked of
on our exchange,and unless both exchanges
take action Europe will leave US to our
own devices Will you not agitate this
matter at once? Yours, very trul
WILLIAM BLACK & Co.