The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-02-04
GRAIN GAMBLING.
Arguments Before the Committee Of Lgd-
culture on The Anti-OptiOn Bill.

WASHINGTON, Feb. 3.-The House Com
mittee on Agriculture to-day began hear
ings on the various anti-option bills
pending in Congress. George Wood Davis,
the well-known statistician Of Kansas,
appeared to-day in advocacy of the
Hatch bill. He said: II will not go into the
question of the effect Of the tariff or the cur.
rency supply upon the price Of these COM
mOdities. | cannot see that the question OF
the tariff affects the farmer materially.
After the year 1870 there has grown upon
the Boards OF Trade a system Of dealing ia
fictitious or fiat products. It's influence
seems to have grown with the years. The
gentleman on the other side of this question
tell us in order 10 market the farm products
OF the country we must have their new
methods; yet We marketed, l think, moro
breadstuffs and pork, relatively to pOpula-
ton, ten years ago, before this method came
into vogue than We do to-day. If We were
then able to market our products without
these methods why cannot we do it nOwP
They tell us we cannot do it without
money; but there is more wealth relatively
in this co untry now than there was ten, or
twelve, or fifteen years ago. Now the con-
sumption OF the world has Overtaken pro-
duction. II wheat brought sl 70 per bushel
in Great Britain for the nine years ending
in 1874, why should it not bring good price
now with leSSened product per capita? It
is, l think, because of the Offering Of unlim-
ited fictitious amounts on the markets with
out any regard to the real product As a
matter Of fact, the prices Of grain are fire.
quently made in Chicago by three or four
men"
The Committee on Agriculture will have
hearings daily upon this subject for one
week.
BOARDS OF TRADE NECESSARY.
just before the adjOur lment Murray Mel
son aud others, representing the Chicago
Board of Trade, laid before the committee
YOuminOuS memorial in opposition TO anti
option legislation. The arguments OF the
memorial are chiefly that the boards Of
trade are essential TO the marketing OF the
farmers produce, and that dealing in op-
tiOnS and futures Is the stimulus necessary
to the maintenance Of boards of trade. IL
asserts that the extent to which produce
gambling is carried on in the legitimate
exchanges Of the country Is immensely ex-
aggeTated. Gambling N prOduce-gambling
pure and sImpe-iS carried on in the bucket
shops This form of gambling, says the
memorial, is and long has been fruitful
source OF agricultural depression, and
rigorous Federal bucket-shOp law, VigOr-
Ousy enforced, might 60 far toward accom-
pIlshing that which is sought.
THE EVILS OF BUCKET-sHoPs.
The laying OF wagers in the thousands Of
buckct-ShOps on the quotations of produce
as they are made in the great marts of trade
the depression of values. The extent to
which the bucket-shOp influence is resDOn-
sbIe for the agricultural depression COM
planned Of is not the Chicago gentlemen
fear fully appreciated. The memorial does
not apprehend that Congress cenfOunds the
bucket-shOps with the legitimate exchanges.
Such a thought it says, "woud be an Insult
to your intelligence" Boards Of trade are
a necessity Of modern commerce. They en-
able the producers to find market at any
time for their surplus grain, cattle, hogs,
cotton, etc, at far better average prices than
could otherwise be obtained.
1t is through the medium of the boards
OF trade that capital is supplied for the
carrying of the coUntry's surplus products
during the long and Wearisome period that
must intervene from the time they leave the
possession of the needy producers until
taken by the tardy and reluctant consumer.
Destroy the system of contracting for the
purchase and sale of agricultural Gommodi-
ties for future delivery by imposing pro-
hibtive tax, and very large proportion Of
the capital thus employed Will seek other
channels for investment, The farmer may
rid himself of the middIemau, but he will
also be bereft OF a market at the same
iv1a