The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-05
ANTI-oPTIoN LEGISLATION.
Appeals for Something Better If the
Present System Must 60.


WASHINGTON. Feb. 4-The House COM
mittee on agriculture, which Is now consid-
ering several measures restricting or pro-
hibiting dealing in options or agricultural
products, to-day received aprotest against
the passage Of the Washburn bill, relating
to that su L ject, from the New Orleans Cot
ton Exchange. The document makes q
distinction between futures, which it de
fends as legitimate contracts, and "op-
tions." commonly known as ''puts aud
calls" which are characterized as nothing
more nor less than wagers.
1t is further asserted that so far from de-
preciating values, the existence of these
features" or contracts for future delivery,
serve rather as restraint to serious declines
in times OF depression. A tabulated state~
ment is given OF the variations of prices in
the cotton market before and after the
establishment of the future" system in
1871, with the purpose OF substantiating
this allegation. The document ex-
presses the opinion OF the board
TO the effect that prices can
neither be permanently lowered nor ad-
vanced by dealings in contracts for future
delivery. A long argument is made to
demonstrate the impracticability Of dis
pensing with the present system of dealings
and OF requiring planter Of cotton to sell
NASShJ w VIC SPAhhOAa O"4hk W buo Aitl-
possibility OF foreseeing the exact amount
and quality OF the growth on each planta-
tion and the needs of the spinner. It is pre-
dicted that the passage OF the bill would
cause the New York and New Orleans cot
ton exchanges to cease their existence, and
would transfer their business to Europe
where prices would be manipulated 10 the
misfortune of the planter.
The committee to-day continued its hear
Of HatROa fiOnz nP hnSinaeo int
ested in the subject OF these bills, North
western grain men had the floor in opposi-
tion to the bills and their views and arRu~
ments were subs antially similar to those
stated IN the foregoing synopsis of the New
Orleans cotton mems protest.
Something was said, however, in defense
of the trade in privileges ('puts and
calls") as we'll as dealing in futures" as
distinct from each other. A. j. SAWYER
one Of the largest elevator men In Mime
apolis, explained the system of marketing
grain. he said he would make no attack
on the bill, but before the present method Of
handling grain was destroyed
he would ask the committee to
devise some substitute by which
it could be better handled. He traced the
method of handling wheat in the north
west. Farmers sent their wheat to the ele-
vators from the thresher, and buyers had
to advance the money. The first day wheat
came in $500 would be absorbed. The
railroads and farmers compelled the ele-
vator men to be ready to receive their
offerings. They had to borrow money. and
Gs cars could not be had Immediately, 1t was
some days at least before they
could ge5 it to Duluth. When this
wheat was received, efforts were
made to sell it to the millers in Buffalo,
Minneapolis or abroad. They could not
take all the daily receipts, and 80 the elevator
men went into the markets and bought op-
tions to cover themselves from loss.
he would not do business unless he
| could protect himself by means OF
| these options or In some other
way there would be too much risk. The
privilege purchased was his insurance
from loss by fluctuations In prices. Mr..
Sawyer appealed to the committee not tc
knock away the underpinning hy which
wheat merchants like himself protected
themselves from losses without giving them
in Its place something equally as good.