Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-06
good for England, because she was large
irnnnrtar of urhaaf

good for England, because she was large
importer of wheat.
In reply to Representative Caminetti Mr..
Whitaker said that the actual products
which came up on the market had to be sold
at the price fixed by the unlimited offerings
and fictitious buying or selling. Meat
products the last year, he thought. would
have been 10 to 20 per cent higher if they
had been competing with real products.
Cotton and Its Lost Cause.
In answer to question by MI. Lewis
Mr.. Whitaker said that, in his Judgment,
this fictitious selling produced an abnormal
condition of the market which defeated the
law OF supply and demand. Cotton, he be-
lieved, would have sold for cents or more
this year but for short sHlling by bears
Mr.. Lewis-In your opinion, then, $780,
600 bales is not overproduction?
Mr.. Whitaker said he was not cotton
expert, and could not answer that question,
but he thought if investigated it would be
found that the $500, 600 bales produced
would not have had the damaging effect 1t
has had on the price. but for short selling
ard the publication OF numerous reports OF
overproduction and small consumption. He
frequently received letters from Europe
saying the writers could pay better prices
for meats if the American markets would
only be kept steady. But this market could
not be kept steady when the cash price was
being pulled down by sales for future de-
livery bv every Tom. Dick and Harry.
Mr. Moses-You think then, the price of
commodities is governed by the amount of
fictitious offerings?
Mr.. Observation-Disclosures
Mr.. MoSes-Do you hold that the market
is not regulated by the law ofsupply and
demand?
Mr.. Whitaker-Yes, sir.
Work on a Large Crop.
Mr. Moses-Why is it, then. that when
reports like BTddSrea'S or the Government
reports are given ont, showing large esti-
mated crop, prices go down?
Mr.. Whitaker-They work that on large
crop.
Mr.. Moses-And vice versa, if the crop is
small prices go up?
Mr.. Whitaker-Not so much Prices go
up little.
Mr.. Moses called attention to the fact
that as a general rule, when port receipts
of cotton were very large prices went down,
and when the receipts were very small
prices went up, and so with car receipts of
wheat.
Mr.. Whitaker admitted the receipts op-
Grated in that way to certain extent, but
tiOn that had 4 tendency to send the market
upward did not affect it to the same extent
as information that tended to send it down.
Mr.. Moses-If meat transactions were
confined to real products only, could not
the Western packers form trust, get con-
troll of the actual products, and put the price
away beyond the reach of the consumers?
Could not Armour, for instance, with his
millions of money, get control of all or
enough of the wheat to control the price
and send it up to 50 bushel?
Not Considered Good Policy.
Mr.. Whitaker did not believe, in the first
place, that that would be good policy.
Mr.. Lewis-Have not most of the men
who attempted to corner the market been
broken?
Mr.. Whitaker-I believe so.
Mr.. Moses-Have not they been broken
by short selling?
Mr.. Whitaker did not know as to that
Representative Livingston, of Georgia,
who was present, asked if it were not true
that two reports were sent out by the
produce exchanges-one public report and
another private report, to brokers only,
which gave the latter an advantage
Mr. Whitaker replied in the negative, so
far as grain and provisions were con-
cerned.
A number of questions were asked with
reference to option business, with the pur-
pose of ascertaining whether there were not
as many buyers as sellers in this specula-
tion.
Mr.. Whitaker said that in the last ten
years speculation had grown immensely,
and he thought there were more sellers than
BUYERS.
Chairman Hatch, of the House Committee |
IN Agriculture, has protest from the New |
orleans bankers against the anti-option |
ill. The bankers say that if the bill be- |
omes law it will do immense damage to
he business in cotton and grain and hog
reduce stabilities of values and |
york great injury.