The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-06-27

On reporting fay0rably the butter.
worth bill to prevent gambling In fu'
lures, Mr.. Funston spoke as follows:
The bill, in terms, does and Is In.
tended to apply to that class of trans.
actions conducted In the s.buckel
shops" and grain pitsn of the coup.
try and known as the ''putsn and
"calls," including the whole range Of
mere speculative gambling In fic.
titious products. Itdoes not affect in.
juriously any legitimate trader or deal.
er i'm farm staples. 1t seeks to and
does impose an Internal revenue tax
upon those dealers" i'm grain, cotton
and pork, who, as a rule, never see
own, or handle peck or pound of the
articles they sell. 1t applies to "deal.
ersn whose transactions have the least
possible reference to the demand fol
consumption; who are not concerned
whether the harvests are blighted OF
bountiful.
The bill, which i'm terms affects
transactions for future delivery, which
are innocent i'm themselves and do nc
harm to anyone, is yet intended to
reach that class of spectators only
who sell with no purpose or intent
near or remote, to deliver what they
sell; who require little capital or stock
i'm trade, and yet who sell i'm the
"bucket shops" and "pits" of the
United States every month more wheat
than is grown in the whole world i'm q
year, thus In great measure destroying
legitimate trade and driving merchants
and traders engaged therein from the
field, and forcing the price of farm
products below the cost of production,
rendering the calling of the farmer un.
profitable and degrading toll.
1t is urged that the influence of this
bill, if it shall become a law, will
greatly hamper and restrict trade and
commerce. If the species of gambling
i'm farm staples now carried on by
dealers in Options" "puts," calls, )"
''futures" etc, can properly be denom-
mated as trade and commerce, then it
may, and it Is hoped that the tenden-
cy may be to hamper and restrict it.
But 80 farfrom the proposed measure in
juriously affecting the legitimate trade
and commerce of the country, the
exact reverse is true. Your committee
are of opinion that legislation of the
character now proposed is fast becom-
ing, If indeed 1t Is not now, indispen-
sible to protect and encourage the ag-
riculture of The country.
1t is not the object of the proposed
law, nor will its effect be to improper
ly interfere with the prosecution of
any legitimate industry or avocation
which adds to the supply of things
needful, or aids in the distribution of
an In ,frsh fou r.,
the stock of useful knowledge In mat
tiers of production or the better utiliza-
ton of what is produced. But obvious
ly those who dealin "options" and stu
lures" contracts, which is mere
gambling no matter by what less
offensive names such contracts may be
designated, neither add to the supply
nor decrease the demand for consump-
ton nor do they accomplish any USE
full purpose by their calling; but on the
contrary, they speculate in fictitious
products. The wheat they buy and
sell Is known as "wind wheat,n and
doubtless for the reason that it is i'm
visible, intangible, and felt and realiz-
ed only in the terrible force it exerts
in destroying the farm industry of the
country:
While the farmer labors from day
to day, contending with flood and
drought to produce his crop, and by
reason of its small value when pro-
duced is compelled to deny himself
and family the needful comforts of life
the producers of this other, a cOmpet-
ing crop-this crop of mere wind, finds
"all seasons summer" and "toil not,
neither do they spin," and yet gather
a golden harvest.
1t will be observed that the dealer
in "options" is not required to have, or
receive, or deliver one ounce of any of
the articles, millions of pounds of
which he sells and buys, and which
pass upon the record as honest trans
actions, made with reference to the
supply and legitimate demand,
The numerous bucket shops establish
ed in all the cities, towns and even i'm
many of the villages of the country
for gambling in options and futures,
illustrate clearly the absolute absence
of necessity to have, or own, or control
a pound or peck of any of the articles
mentioned, in order to buy and sell
millions of each. Careful investigation
will disclose the fact that the seller of
futures has an advantage ofthe buyer,
which advantage must be adjusted by
a reduced price in the market in order
to induce purchasers; or, in other
word, before:the buyer will agree to
gamble, the article to be gambled i'm
must be reduced below its real value
to point where he believes it can be
forced no lower; and thus his disadvan-
tage balanced by a reduction of the
price of the article in which he desires
to gamble. In that reduction the farm
er must be sufferer, because his stuff
cannot be sold for more than the price
thus fixed.