The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1892-02-09
WOOD DAVIS ON OPTIONS.
The Kansas A lance Expert Attributes
Low Pr Ices to Exchange Speculation.

Low Prices to Exchange Speculation.
WASHINGTON, Feb. 4.-The committee on
agriculture Of the house Of representatives
yesterday began work on the various anti.
option bills pending. The measure which
is most likely to receive the sanction Of the
committee is the one presented by Mr..
Hatch, the chairman, defining options and
futures and imposing heavy special taxes
on dealers therein.
c. Wood Davis, the well known Alliance
ststistician of Kansas, appeared in advo-
cacy Of the bill. My sole business" said
he, lis that Of farmer and producer.
Finding this business Improbable in re-
cent years I was impelled to an investi-
CATION Of the cause OF the depres-
sion in prices of farm products. I
started to work procuring data from all
parts Of the world, official or otherwise. I
found that up to 1854 the world was pro-
ducing more wheat and breadstuffs than
1t required. A large accumulation took
place the world over, but since 1884, il nu.
merical data can be relied upon, the world
has produced in but one year since
that time as much wheat as il has
consumed. That year was 1887. In 1884
there were 600, ooo, 900 bushels Of wheat
piled up in the farm and other granaries
Of the world Now it follows logically
that when the world produces less than il
consumes. the price Of wheat and other
breadstufis should increase. Yet such
has not been the case. Why Is thisi I
will not 60 into the question Of the effect
OF the tariff or currency supply
upon the price of these commodities,
cannot sec that the question Of tariff
Affects the farmer materially. am Re.
publican and a protectionist, but it does in
some cases, have no doubt, enhance the
cost Of necessities. Now. after the year
1870 there had grown upon the boards Of
trade . system Of dealing in fcti ious or
hat products. This system began with
the short selling Of gold in Wall street
during the war and was carried into the
exchange Of the country during the
seventh decade. 1t became so far Is I
can learn, . disturbing factor about the
first Of the last decade, that is after 1850.
Its influence seems to have grown with
the years. The gentlemen on the other
side OF this question tell US that in order
to market farm products Of the country va
must have these new methods. Yet We
think, more breadstu1s and |
pork relatively to population years age,
before this method came into vogue, |
than we do to-day II we were then J
able to market our produces with. |
out these methods why can't We do il |
nowl They tell US we can't do without
the money. But there is more wealth re- I,
latively in this country now than there !
was ten or fifteen years ago. Recently
one Of the bankers Of Chicago told me
there was more money tied up in margins
On these future sales than would pay for |
he entire visible and invisible supply
IL wheat three times over. The
heaviest visible supply of wheat
We ever had is 100000 bushels.
u the invisible supply was another
Y 1900 bushels, then Sl2i, 0OO, 900 would
move this entire crop at 81 a bushel. Now
he consumption Of the world has over.
aiken the production. II wheat brought
y. ~ per bushel in Great Britain for the
line years ending in 1874, why should il
Tot bring good price now with lesseped
product per capital 1t is. think, because
4 the Offering Of unlimited fcticious
'mousts on the markets without any
egard to the real product. As q matter
4 fact the prices Of grain are FIRE.
Iuently made in Chicago BY three o.
pore men. I have telegram received the
Their day which says: Partridge Is
'igRer than the market and has sold freely
u day. Now Partridge has for the last,
hree OF four days dominated the market {
( Chicago and been able not only to de.
ermine the price Of wheat there, but the
rice Of wheat in the exchanges all owes
be country. He has made the price foI
imsslf without regard to the amount pro.
uced. A young man in Chicago who can
aise $50 can throw 1000 bushes Of wheat q
q the market at any time through this ,
ystem-