The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-02-04
OPTIONS AND FUTURES.

MIR. Hatch's Committee Listens to Argu-
ment Against Gambling I'm Farm Products
WAsHINGTo n, Feb. 3.-The committee OF
agriculture of the House OF Represents
tives to-day began its series of hearings or
the various antl-optlon bills pending In
Congress. The bill which is most likely Co
receive the sanction of the House commit
tee is the one presented by Mr.. Hatch, the
chairman, defining the options and futures
and imposing heavy special taxes on deal
ers therein. G. Wood Davis. the we'll
known sratistioian of Kansas. appeared to-
day IN advocacy of the bill. my sole
business" he said, ''is that of farmer aud
producer. Finding this business unprofita-
BILE in recent years was impellcd to an in
vestigatlon of the causes OF the depression
in prices of farm products. started to work
procuring data from all parts of the world,
official and otherwise. j found that up 10
1884 the world was producing more wheat
and breadstuffs than it required. A large
accumulation took place the world over,
but since 1854. If numerical data can be
relied upon, the world has produced in but
one year since that time as much wheat as
it consumed. That year was 1887. In 1884
there was four hundred millions Of bushels
of wheat piled up in the farms and other
granaries of the world. Since that time we
have. IN q sense. drawn upon that surplus.
Now it follows. logically, TINT when the
world Is producing lees than IL consumes
the price OF wheat and other breadstutfs
should increase. Yet such has not been the
case. Why is this7
81 will not 90 into the question of the
effect of the tariff OF the currency supply
upon the price of these commooltiss. L
cannot see that the question of tariff affects
the farmer materially: am a Republican
and a protectionlst, but it docs. in some
'cases. have no doubt. enhance the cost OF
necessities Now, after the year 1870 there
had grown mp on the boards Of trade a sys-
TEN Of dealing in fictitious or fat products.
This system began with the short selling
of gold In Wall street during the war. and
was carried into the exchanges of the conn
try during the seventh decade. IL became.
SO far as i can learn. q disturbing factor
about the first of the last decade: that is.
after 1850. Its inhuence 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 we must have these new methods.
Yet We marketed. think, more breadstutfs
and pork. relatively TO population. 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 can't We do IL Dows
They tell us we can't do IL without the
money. But there Is more wealth Iela-
lively in this country now than there was
ten or fifteen years ago.
MILLIONS OF MONEY TIED UP.
Recently one of the bankers of Chicago
told me there was more money tied mp in
margins on these future sales than would
pay for the entire visible and invisible
supply of wheat three times over. The
heaviest vIsible supply of wheat we ever
had was G.. .00O. 900 bushels. If the invisible
supply was another CO. Coz, 600 bushels. then
S12i. 100000 would move this entire crop at
81 bushel Now the consumption of the
world has overtaken the production. III
wheat brought Sl.70 per bushel In Britain
for the nine years ending IN 1874, why
should it not bring good prico now with
q lessened product per capital IL is /
think. because of the Offering of unlimited
fctitious amounts on the markets without
any regard 10 the real product
AS q matter of fact the prices OF grain
are frequently made in Chicago by three
or four men. have here q telegram re-
ceived the other day which says: "Perd-
ridge Is bigger than the market and has
sold freely all day" Now Partridge has
for the last three or four days dominated
tho market of Chicago and been able not
only 10 determine 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 young man in Chicago who
can raise $50 can throw ten thousand