New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-26
OPPOSING TIE BUTTERwORTH BILL.
PLEA THAT srLcuLATIoN TENDS u ENHANCE

TO the Editor Of The Tribune
sir: The ink was hardly dry on the report ~ inc
House Committee on Agriculture fav"rns the Butter
worth bill TO suppress trading In options, before an
advance Of 10 cent? per ba-hc In wheat occnrIeh ms
ought 10 he matter ~ chagrn - those who consider
Tho question Of speculation in such superficial man
nor Then, can he no question but that rule. the
Introduction into a market Of speculative consitu
cncy enhances values. For example. new stock j.
brought nto a stock FNchan~c and It's merits are
known only 10 a few. e. tLit competition an NJ
luycr, (, limited t. those acquainted with the stock
A. the public become familiar with the stock the '1f'e
q possible buyers cnarrcs and the price IS advanced
Docs any one suppose that Erie common would sell a
hish rs It does II 1t dealt In a. private invest
mcntf
Take the experience in the petroleum market IA an
Instance. some YEAR, ago everybody was buying ana
selling oil. and IT, price then relatively high 10
what II is now though present conditions are V"-NV
more hulll.h.7 The public were almost lnvafi"0y
on the ~bulr side and they purcha-ed oil. which, 50
far the price concerned. was affected A. much as
II they had bought 1t to consume They took IL of
the market. They lost money and gradually dropped
out = the market. leaving actual consumers that Is
rcfncr- the only buyers. This has caused lower
range Of price.
II j. logical to saw that II the open markets for wheat
were closed up. a, they practically would be were
"optlon7 future" trading abolished. prices would
mlcr-. shippers exporters. and they. presumably,
would only buy from hand to mouth. Then the -pccn-
latvc public would be carrying from month I" month
large quantities Of wheat. II /, folly to discourage
people who willing TO carry wheat or provisions
from doing so. for with SPECTATORS "ont
Of the ring" there would De Just -
much less average competition among buyers
II Is true that a.Onay professional spectators
attack values but the result generally reaction
that carries prices higher thah before. that better
obtained. II l. manifc,ty to the interest
Of producer TO have big rather than restricted
market for his product. The possible buy crs
educated TO trade IN his product The better When
conditions are "buli-h' the Spectator Will add 10 the
price, Of hi, purchase, and when natural conditions
are bcarish,' producing low prices the pubic are
tempted 10 buy and hold for rise As FAR a. tho
morality of the business j. concerned. II Is dhclt 10
distinguish an agreement 10 deliver wheat next month
from an ncnt 10 deliver IL next saturday. or
from agreement 10 furnish lot Of wOocn blankets
steel rails next september, when, perhaps, al me
time Of making the contract the wool l. on @ Sleeps
back and the ore In the ground. y contractor puts
In bid for the construction of a house before no
buys the materials. and this docs not permanently
pre-, the value of houses The trouble with farmers
and those who court their woes Is that they think
specifically. When they see low prices prevailing
for their commodities the nOOr of an exchange
they think II Is the fault Of the exchange which
gistcrs the prices. They don't 20 behind TINS fact
to nSdcr the Operation of commercial laws OF supply
and demand Of Increasing areas Of seeding ana III
crisng Yield per acre. OF foreign supplies IN compct
ton and Of the prevalence OF low prices generally
throughout the entire commercial world.
GEORGE RUTLEDGE GIBSON
New York. April l5, so.