Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-04-11

Will De wiped out by this bill, you thlnkr
Mr.. Nelson-Certainly.
=, Mr.. Morsan-The bill explicitly protects all
these transactions
Mr.. Conger-I think Mr.. Morgan is mistaken
as 10 the effect Of the bill.
Mr.. Nelson repeated that the result Of the
bill would be to crush out the small dealers
and place the farmer at the mercy Of the large
capitalists, who can buy cash grain, but they
will buy ut such price that they can hold Il
until Gabriel blows bis horn without sustaining
loss.
In answer to a question by Mr.. Allen OF
Michigan Mr.. Nelson said that local banks
could not supply nor could not get sufficient
money to move the crops of the country, nor
could the local dealer or agent 1t must be
supplied from the money centers.
THE TAXING SECTION.
Referring to the taxing section, Mr.. Nelson
asked why if the committee believed the bust
ness to be honest a license was required2 Ger
tainly not for the revenue to be derived If
the business is to be made penal offense, why
not say 30 lin the frstinstance and declare it
unlawful in 30 many words.
NEW YORK VIEW.
Geo. G. Martin of the New York Produce
Exchange was the next speaker. He said he
spoke from the standpoint Of grain merchant
at the seaboard. The tendency Of business for
years past has BEEN he said to bring the pro-
Queer and consumer closer together. The con-
sumer, represented by the buyer at Ant
werp or some other European port,
meets the producer in the person of the Chi
caco buyer. The middlemen who have eaten
into the profits Of the farmer are fast disap-
pearing Mr.. Martin said he did not speak with
any antagonism to the farmer, for the interests
OF the farmer and merchant capitalist and
railroad man were identical. The prosperity of
the farmer is the prosperity Of them all.
BUsINEss WHICH Will RE ARorrsurD
He then described in detail the operation by
which the New York dealer advanced money to
the western buyer in order to enable
grain. All this class Of business
will be abolished IL the Buttsrworth
bill was passed The existence of
the present method of doing business was
essential to the successful marketing and
handling of crops. 1t would be impossible to
handle the crops Of this country if the producer
and consumer were compelled to sell and
buy only as they were marketed. The
crops of the past five years OF the FIVE princi-
pal cereals amounted to the enormous annual
average Of 1850, 100000 of bushels II the
farmer were compelled to sell when the crops
first began to move the produce of the country
would be sacrificed.
PRESENT METHODS GOOD FOR THE FARMERS
As a result or consequence Of the present
methods of doing business, Mr.. Martin said that
the farmer never before received 80 great per
cent OF the values Of his crops now. Twenty
years ago the cost Of transporting a bushel
of wheat from Chicago to New York by lake and
canal was 49, cents; now the rate is five and
nine-tenths cents. 1t may be asked, continued
MIR. Martin, why there are prices now SO low
with commissions reduced. freights re-
duced and the export trade the largest
ever known? In his opinion 1t was
because Of the recent series of large crops,
from which had been accumulated in store
2OO, 00O 900 bushels of corn more than ever be-
fore i'll the history of the country. The mer-
chant has suffered losses along with the
farmer. In 1875 the commissions on a bushel of
corn amounted to "a cents, now the entire
crop OF the country was marketed on a COM
mission Of one-fourth cent. If the bill passes
Mr.. Martin said that three-quarters of the ex-
port trade of the country would be prescribed.
Mr.. Morgan asked Mr.. Martin if he knew
any way by which actual transact ons could be
protected and the illegitimate speculation
abolished.
He said he did not
PROTEST AGAINST THE BILL.
]. o. Bloss, of the New York cotton ex-
change, read an argument against the passage
of the bill prepared by a committee Of that ex-
change, prefacing it with protest against the
bill signed by the leading bankers of
New York, in which they state that the passage
of the bill would work great damage to legiti-
mate trade, and that the banks find their risks
of advances under the present system of bust
ness less than under the old.
THE ARGUMENT OF THE COMMITTEE
stated that no exchange or board OF trade rec
ognized options except to prohibit dealings in
them. Futures was term much
misunderstood. They were not
simply bet" upon the price of an
article at future time; they we're actual le-
climate contracts for goods that could be en-
forced and that were enforced. That there was
an element of speculation in them was not de-
MED, just as there was speculation in every
business
But the question arises whether because
there is some evil" continues the argument
"a great deal Of good should be utterly de-
strOyed. The two things are SO welded to-
gether that one cannot be destroyed with
out destroying the other. Having, therefore,
conceded that speculation does exist, and at
the same time asserting that the legitimate
features of the business also exist to an enor-
nous extent. the question comes to be whether
the evil Is SO great that the good shall be sacr-
feed or whether the good SO far preponderates
that the evil shall be borne with"
In conclusion, it is the opinion of the COM
mittee Offering this argument that no legisla-
tion has yet been able to regu::
late .,r Ea,ue' ,,u.. Of a9ythlng and
be cited the law which was passed by
Congress to prohibit public trading in
gold. The effect of that legislation. had for the
purpose of reducing the premium in gold, was
to advance the price from 220 to 285
The repeal Of the law resulted in the immedi-
ate decline Of the price to that from which it
started.
Mr.. Boss was followed by J. w. Cabonisse
who, with Gen. ]. j. Hazayd Of Rhode Island
and L. F. Berje, represented the New Orleans
Cotton Exchange.
THE POST OFFICE BUILDINGS.
Mr.. Wanamaker Urges His Plan BE.
fore u House Committee.