The times. [volume] (Richmond, Va.) 1890-1903, 1890-09-17
DEALING IN FUTURES"

The demand of the south Carolina Demo
cratic Convention that Congress shall
pass such laws as will eflectually prevent
dealing in futures of all agricultural
products" raises three inquiries-firsi- why
should Congress be called upon TO pass
such laws: secondly, why should such
laws be passed at all, and thirdly, if deal
ing in futures is wrong why limit the effect
of the laws to agricultural products
Ii seems that in calling on Congress the
convention was "barkIng uP the wrong
tree" BY a possible construction OF the
"jnter-State commerce" clause Of the Con-
stitution Congress might pass laws regu-
lating contracts between citizens of differ
ent States touching subjects OF interstate
commerce, but il has never done So; ana IN
view of the plenary power of each state IN
this respect, and the positive laws of most
if not all Of them on the subject OF future
contracts" it seems not only useless but
certainly bad Democratic doctrine to IN
woke the interference of Congress in mat
ter which the States are unquestonably
competent in law and fact to control. But
why should dealing in futures" be forbid
den! For those who are not informed we
remark that a "mture," SO called, is con-
tract to buy or sell an agreed amount Of
some article at an agreed price at some
specified future time.
The courts hold that in case this contract
Is not made with a bona fide purpose on the
part of the contracting parties to deliver ON
the bne side and TO receive on the other,
and pay for the article contracted for, but
the only intention was to settle in cash the
difference between the agreed price and the
market price at the maturity of the con-
tract, and never to deliver the goods, such
a contract is mere gambling and not en-
forceable at law. 70 invalidate a future
contract this characteristic must be dis
tinctly shown.
This rule seems TO us to have gone far
enough, and has been the occasion Of scan
dalous breaches OF faith on the part Of those
who having suffered a loss, would escape
il by taking cover under the ruling, and so
throw the loss on the other party. But what
reasonable objection can be raised 10 con-
Nract which binds one man 20 deliver and
another TO receive at a future time some ar
ticie which the one has 10 sell and which
the other will want at the time nameds
.e law asked for would inyalidate the
beneficial and important contracts.
xo,,hoInillers, cttton manufacturers, nor
,o,'aaoonis could buy ahead.
~, ,,o ,',%Arriety and necessity Of such
contracts for ffSla'o u , nave ocen
the occasion Of perSeS ',o19 ia'o INC '"'ios.
gambling cannot be Nes u,eo' nN, tue e'ii
seems inseparable from ss~.a ''' op-
erations however proper, andliy kec ,c. over
balance the great benefits whicN~NOls, W
the public at large from the speSM We
dealings in culture contracts" w.
Can any matter be Of greater importanVS
10 people than the cost Of their TODD r
How are the prices of such articles deter
minedg
is there secret council anywhere that
fixes the price Of wheat or corn or pork
Not at all. These prices are fixed by the
memorable laws Of supply and demand, the |
amount OF supply and the probability Of de-
maud being ascertained in every possible |
way and the facts thus disclosed being acted
ON by the dealers in open market according
10 their respective judgments. The Gov
eminent makes its crop reports in order
that the public may be advised how much
wheat, corn, cotton, NC. will probably be
produced.
The amount on hand is carefully noted.
The molat Of demand for home and for
eign consumption is estimated as accu-
rately as possible. The crops Of foreign
nations and the sources Of supply from
them are Investigated, and 80 upon this
aggregate Of information and great deal
more beside, the intelligent and careful
dealer forms his Judgment as TO what VIII
probably be- the price OF any article he may
Ss studying at auy time until the new crops
come M. rhe result Of this Judgment nxes
as far AS he 10 concerned the price OF The