New-York tribune., 1890-05-23
SELECTIONS FROM THE MAIL.
DEALING IN " FUTURES
CONSIDERED FROM THE DEALERS POINT or

TO the Editor ~ Tho

o the Editor Of The Tribune.
Sr have read the letter of John W. Champln,
OF NHloFpoA ~ y, published in your issue OF the Goth
uIt, crltlclsng what McssTs. Nelson Martin and my
sell mad TO say before the House Committee on Aer-
culture on the subject of the Buttery orth bill taxing
dealings IN options and futures"
nave very grave doubts if any line Of argument
VIII carry conviction to the class of people that Nh
Chahphh represents. lie undoubtedly belongs to
taI Class OF whom there the Committee
on Agriculture, whose strongest argument seems to
he that inc methods of dealing in the various
changes oi tic country gambling BETS in
iqutous, wicked immoral and "un Christian a
person VINO undertakes to discuss an economic question
win one Whose mind is thoroughly mbued with this
fccHne certainly starts at great disadvantage and
WIN hltc nope Of producing any impression.
INC "hoc basis OF argument for the suppression OF
dealings In contracts for future delivery is that b.
reason OF such dealings the prices OF commodities are
lowered the producer being compelled to sell at the
lowest price, the buyer rcaping all the advantage Of
any subsequent advance, which. it is urged rghtiuy
belongs To the farmer, assuming that but for such
dealings, there would be practically fixed price for
al pIW1uctS the whole year round Itch fixed prco
would be uIon high level that tie low level com
palHed Ok !, because class Of men known specula
tors trade IN farm products and thereby cunnlngly and
wickcdly reduce values, entirely losing sight Of the
fact that very small percentage Of Spectators
OF time. Experience shows that almost without
ccption they como to grief.
lie whole animus Of such legislation the Anti
Irast bill and that proposed In the ButtcrwOrth bill IS
to bc found in tho reported remarks of Mr. Butter
worm, OF ono, when he says: In cases, trIsts
lowered the price Of the commodity the customer.
but they prevented the equality Of opportunity Tho
men who owned u hundred homes were increasing
every hour, while the men who owned none
Increasing IN vastly greater raio.7 In other Word,,
In the race and competition Of life all not equal
and To remedy this, laws must be passed to head
OIL ability, otherwise few big men Will eat up and
destroy the little one, " may be a matter Of regret
that al men not rich equally capable but
legislation will hardly accomplish the end Of making
them so and when one reflects that the Creator has
established order Of thing, whereby larger life
feeds smaller Is hardly to nc presumed that
human gi,la'ion can improve on the Divine.
Mr.. Champn's remarks that the reason tho farmer
now receives greater percentage Of the value Of
his crop, than formerly is because the freight has
been reduced by the railroads not suggest why
the freight has been reduced II IS competition or
supply and demand. that has reduced II, and after
III, supply and mand the final factors that
govern the price of any commodity ] am not IN
mindful Of the flct that wildcat banks and stump
tail curr"uc,r may have entered into the making Of
prices to ,omc extent In certain years prior 20 $50
but | am inclined 10 think that greater influence
tan tlc," va. the efforts Of Mr. lddlc. If the
United STATE, Bank. to control the price of cotton.
other Circumstances may have contributed 10 his
failure bui the underlying cause unqucst3Aaby was
% t"o great -uppls and Lack of buy ers.
speculation a, q rule f. hopeful, and operates on
the hu7 side il step, in when things are depressed
and Orcr- relief To- the pa.!c stricken, alt'rward
when confidence ht- rcclncd a-ccndancT the marKct
Ing - the purchase maze during The 'mc of depression
testir- extreme Il price, ~ the opposite dire 1l
II would Doe too lpng story - lay ont n detl all
the advantage u trading 'or future delivery and i,
!. .-ffImltc rtuItcstpn, even those who look upon n
A. being wchcd ctc conccde that there Is some good
in IT, II they could only eliminate the wicked specu-
nfor ~ one can tell with a, -0iute certainty lust
what ~" effect upon pric's vpuld De- II there "cr'
absolutely uo -perulafi1u iu the world. The farmer
apparently hun- u would Dee immensely n hi, benefit
II b., mv opinion. and ono that i- shared by many
others not LARGELY Interested that such would not
he the case. ou the contrary Il Is my belief that the
-pcculatpr >cryc- useful purpose in providing
nu cv Hr ready market that h. is ever governed hv
the Influence Of supply and demand 4 the best q
h.- ability 10 Judge ~ II. and finally 'thnt supply
and demand viii continue 20 regulate price,. ire
-p',tyc of sp.rglatos,. until VI. Hcam,', idea iu
Looking Iactwnri- come, into vogue. when there
wIu hr no more any such thing prices. and the
millennium viii he ushcf'd In. JAMES .. BLO~o.
ipr' Nay 81 l-1O.