St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-04
FICTITIOUS PRODUCTS
10!
MIR. Hatch's Committee Begins
Hearings ON the Anti
Option Bills.
Statistician Davis, of Kansas,
ts Gives the Results OF In
o.. vestigation.
Worlds Consumption Equals
. Production, but the Price
& Is Very Low.
Director of the Mint Leech
Director Of the Mint Leerh
:, Spends a Day Answering
5 Silver Questions.

atlves today began it's series of hear
Ings on the various anti-optlon bills
pending in congress. The bill which is
most likely to receive the sanction of
the. house committee is the one pre-
scented by Mr.. Hatch. the chairman, de-
timing eptIenS and futures. and imposing
heavy special taxes on dealers therein.
Wood Davis, the we'll known statis-
tician of Kansas, appeared today in
advocacy of the bill. MY sole bust
ness" said he, sis that of farmer and
producer. Finding this business un-
profitable in recent yearS.I was impelled
TO an investigation of the depression in
prices of farm products. | started to
work procuring data from all parts of
the world, official and otherwise. L
found that up to 1884 the world was pro-
ducing more wheat and breadstuffs than
1T required. A large accumulation took
place the world over, but since3 1884, if
numerical data can be relied upon, the
world has produced in but one year
since that time as much wheat as it con-
sumed. That year was 1887. In1SS4
there were 40O,0O0,000 of bushels of
wheat piled in the farm and other
granalies of the world. Since that time
we have in sense drawn upon that
surplus.
Logic That Failed.
Now, it follows logically that when
the world is producing less than it con-
Sumes. the price of wheat and other
breadStuffS should increase. Yet such
has not been the case. | will not go
into the question of the effect of the
tariff or the currency supply upon the
prices of these commodities. | cannot
see that the question of tariff affects the
farmer materially. | am Republican
and protectiOniSt. but it does in some
cases, have 10 doubt, enhance the cost
of his necessities.
Nov, after the year 1870, there had
grown upon the boards of trade sys-
tenn of dealing in fictitious or fiat prod
ucts. This system began with the
short selling OF gold in Wall street dur
ing the war, and was carried into the
exchanges of the country during the
seventh decade. 1t became, so far as
| can learn. disturbing factor about
the first of the last decade, that is, after
1880. Its influence seems to have grown
with the years. The gentlemen on the
other side of the question tell us that in
order to market the farm products Of
country we must have these new meth
DDS. Yet we marketed, think, more
breadstuffs and pork relatively to popu-
tatiOn ten years ago, before this method
came into vogue. than we do today. If
we were then able to market our prod
uctS without these methods, why cannot
we do it now? They tell us we cannot
do it
s. Without the Money.
= "But there is more wealth, relatively,
in this country now than there was ten
or twelve or fifteen years ago. Recently
6ne of the bankers Of Chicago told me
there was more Hfnoney tied up in
margins on these future sales than
would pay for the entire visible and in
visible supply Of wheat three times over.
The heaviest visible suppiyof wheat we
ever had was 62, 0o0,006 bushels If the
Invisible supply was another 62, ZOO, 900
bushels, then. sl34.000, 900 would move
this entire crop at 81 a bushel.
Nov the consumption of the world
has Overtaken the production. If wheat
brought $l.70 per buSDel in Britain for
the nine years ending in 1874, why
should it not bring agood price now
with leSsened product per capita? 1t
is. think, because of the offering of
unlimited fictitious amounts on the
markets without any regard to the real
product. As matter of fact, the prices
of grain are frequently made in Chicago
by three or four men. l have here
telegram received the other day which
says: Partridge is bigger than the
market and has sold freely all day.
Now Partridge has for the last three or
four days dominated the market of Chi
cago, and been able not only to deter
mine the price of wheat there, but the
price of wheat in the exchanges all over
the world. He has made the price for
himself, without regard to the amount
produced. A young man in Chicago,
who can raise $3.50. can throw 10000
bushels of wheat on the market at any
time through this system.
Possible to Stop 1t.
''Do you think it is possible to put
stop'tO this method by national legisla-
tiOn?' inquired Mr.. Lewis. II think
SO. should not be in Washington if l
did not think so. The Butterworth bill,
the Hatch bill, the Brosius bill or Wash
burn bill in the senate will either of
them put stop to this practice"
You stated" said Chairman Hatch,
'that since 1884 the ratio OF consump-
ton of the world has increased over the
production of breadstuffS. Now, since
1884 is it not fact. demonstrated by
the best statistics in the world, that we
have drawn greatly upon the reserve of
breadstuffs that had accumulated by
reason of the other conditions up to that
time?'
Eyes, sir; the writers for all the trade
journals and economists admit that.
The condition which now exists in kus-
STA is due to the fact that the reserve
of wheat and rye formerly produced is
now exhausted. The famine really ex-
listed in eighteen provinces of Russia
before the harvest of the past year, thus
showing au entire exhaustion of the re-
serve"
The committee on agriculture will
have hearings daily upon this subject
for one week, audience being given to
representatives of both sides of the
question.
Protest from Chicago.