The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1883-03-23

! outs and calls?'' said reporter to MIR.
J. b. Hobbs, President of the Chicago
Board of Trade, who proved to be rsry
we'll posted.
II couldn't tell you.
Cunt You guess?"
"That would be the only way"
''Guess them"
'Ican't."
"Is it 2OO.OO bushels day."
80, yes"
"More than that"'
"a good deal"
''Duco leg'
"Yes-sometimes In the millions"
"Whc are engaged in the business?'
"rrety much everybody"
"Are you9'
Eyes. Customers want us to buy
and sell puts and calls, and we have to
do it. because that has grown up to be q
large part of the trading"
''DO all the commission houses take q
hand?"
mot all-only those who are engaged
in speculative trading. A great IN any
do it for protection. One may be long
and buys put so that II the market
goes down he is all right. Another
may be short, and if he sells, because he
would just as leave have put as not.
Then others buy and sell and trade on
them. For instance. a man buys put
a: a certain price un,ler the market. Ii
the market declines to near that price he
will buy the property and take the
chances of an advance"
"You know Of the law prohibiting
such traling?"
YES"
"What explanation is given fol- Ks
violation?"
None whatever.
Is it deal letter."
Yes. 1t il such common pract ce
that NOBODY pays any attention to the
law"
Hasn't the Board shut down on the
business?"
mo. 1t has been the practice iur
twenty years"
When is the trading done?"
After the two o'clock call"
Has there been an increase since the
law was passedT'
The business increases with the vol
ume of trade"
The law is of no use, them"
Trading in options is the custom all
over the country. 1t is the prariice in
New York on the Stock Exchange and
on the Cotton Exchange. The most
prominent men are operators in puts
an calls"
"What was the law framed forP'
L" think for protection. When there
are violent fluctuations and q man has an
amount of property put to him on de-
clining market he gets no compensation
for it. That is to say, take 5000 bushels
of wheat. A man buys put for ten
dollars. 1t may decline ten cents bush
el. The loss on that would be $500, an |
he only receives as compensation ten dol
lars"
L" He doesn't buy the property"
"Yes. When they put it to him it be
comes trade just the same as if it was
an actual sale; it becomes an actual
sale"
&" Isn't it true that in the bulk of cases
no property passes?"
40 no."
" Property actually passes?"
eff a man buys put anil the market
declines so that he can put it, or if he
buys call so that he can call it, the put
and call then becomes actual trades -
Just as much of trade as if made in any
other wav."
1.-The law doesn't apply 10 such trad
ing?'
1.-The law applies to the trading. That
is. put is illegal. and if you put the
property YOU cant recover any damages
the courts"
"rhen it is question of honor"
THAT is ALL"
care the trades honored?"
ayes, as a rule"
"What proportion of the commission
men are engaged in this businessT'
IL don't know"
"Half?"
81 couldn't say"
"A good many?"
"Yes. don't wish to name them:
but the business is so common that it is
not discreditable at all. 1t may be in
of the law, but they are not
doing any injustice. Puts and calls
might possibly do a gre deal of harm
to the parties who sell them. They can
never do any harm to the parties who
buy them, except to the extent of the
money paid. which is very small per-
"Why not to those who buy them"
because the party who buys only
runs the risk of losing the amOu It he
paws for the privilege. For instance:
The money paid on five thousand bushels
Of wheat is ten dollars and on five thou.
sand bushels of corn is five dollars. He
ian lose only ten dollars on the wheat
and five dollars on the corn; but the
party who sold may have the property
put or called, and lays himself liable to
ose very large amount"
"Do you think it advisable for people
n the country to send money here to be
invested in puts and calls?"
"No. SIR"
"Are not the firms square who adver-
ie that they will make such invest
"rhey may be square. but a man in
he country who buys . put or q cali
would stand no chance whatever Of
making any money!"
because be don't know anything
Ibout the trade"
"No, not that. don't want to saw
hat he would never make any money.
ut the chances are that he would not"
"Why?'
THE fluctuations Of the market are
70 small on the average that the amount |
# money he pays out for the puts and
'alls would far exceed the average fuc-
uations of the market; and there would |
We no money in it for him. To make |
his point plain: Suppose for instance |
'ou bought put tonight on 5000