New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-12
DEALING IN "FUTURES."
MEMBERS OF EXCHANGES PROTEST AGAINST
THE BUTTERwORTH BILL.
IT Is UNJUST. THEY SAY, TO PREVENT TRADES
MADE FOR FUTURE DELIVERY-JUSTIFY-
ING THE PRESENT SYSTEM-wHERE

HE PRESENl S1SlEM-W hLhE
THE FARMER COMES IN.
Washington. April 11.-An interesting hearing was
had this morning By the House Committee on Agrl-
culture on Mr. Buttcrworth's bill to prevent dealings
in options and futnres. There present dclega-
,ions from the New-York Produce aud Cotton En-
changes the Chicago Board of Trade. and the New
Orleans Cotton Exchange. all Of them to protest
against the passage Of the bill, which has already occh
recommended by the committee. Murray Nelson &c
presenting the Chicago Board of Trade said that all
exchanges were in sympathy with the hrst section
Of the bill-to abolish trading privileges e. puts and
calls" and bucket shop dealings But to stop sales for
future delivery Mr. Nelson said. would be to Interrupt
and disarrangc the entire financial system OF t'c
country. He explained the operation by when the
grain reached the market from the producer, IN WHICH
operaton the farmer. the local agent, the broker III
the money centre and the banker we're all engaged.
Mr.. MorGan-And the business OF all these VIII DO
wiped ont by this bill. you think!
Mr.. Nel,on-Ccrtainly.
,cnrcc C. Martini of the New York Produce FIX
change described the operation by which the New
York dealer advanced money to the Western buyer III
order to enable the latter To purchase ana hod grill
All this class Of business will he abolished If the bill
is passed Il would be impossible, he s1id. n handle
the crops of this country If the producer and consumer
were compelled to sell and buy only As they were
before received great percentage OF the value OF
his crops as now II the bill passes he said three
quarter, of the export trade Of the country would be
prescribed.
Mr. Morgan asked Mr. Martin if he knew any way
by which actual transactions could be protected and
the Legitimate speculation abolished lie said he
did not.
J. O. Bloss Of the New York Cotton Exchange. read
an argument against the passage Of the BILL prepared
by a committee of that Exchange, prcfaclng 1t with
protest against the bill signed by the leading bankers
Of Ncw-York in which they state that the passage
Of the bill would work great damage TO legitimate
trade and the banks find their risks oil advances
under the present system Of business less than under
the old The argument states that no Exchange or
hoard OF Trade recognized options, except 70 pioDi
dealing, in them Future. he said, were actual
legitimate contracts for goods that could be en-
forced and that were enforced. The evident object
~ the bill is 10 benefit the farmer. the argument
ON the theory that trading IN future contracts tends
to reduce the pr'c OF his products. Between III"
wear, SO and l-GO the widest nuctuaiOn IN the
price Of middng cotton IN Ncw-lork "aS ~ een,s
"A pound. IN any year, the ndfro~est cent ana
mn, average annual nuctuatiOn, cents In the
pcriod from l-74 Ia loo the widest nuctuailon III
any ono year was 1. cents pound me narrow
g., 2 Of "A cent and the average, : cents
me ucriod from l-7f to i-1o cover, the time that
trading ~ future contract, has been IN vogue. II
these statistic, show anything. says the argument
they show that the effect OF the trahlnS 10Y future
delivery has been Ia give the markets OF the world
T., violent character has reduced the rH"s OF mcr
chant, and bankers. and AZ The same tulc mas Se
.urd Ia the planter, OF cotton "a higher range OF
a. Mas. vas followed bv l. W LabousSe who. with
General j. J. Hazard. Of Rhode Island. ana l.. /.
pcric Represented the Ncw-Orleans Cotton EXCHANGE.
lie stated that he fully indorscd Mr.. bloss' state
chairman Funston says that more hearInr' will
be had.