The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-26
DEALINGS IN OPTIONS.
LEGITIMATE BUSINESS NOT TO Be
INTERPRETED WITH.

Every Transaction, However, Ex,
pected to Rest Upon the Foundation
of an Actual Crop-Contracts TO Des
liver May Be Resold-Senator Wasl4
burns Amendment to His Bill.
WASHINGTON. Feb. 25-BiIls TO preveuh
dealing in options will probably be reported
in both houses Of congress, but the reportI
will not be submitted for some time. Mem.
bers Of both the Senate and House commit
tees say that they have no intention Of in-
terfering with legitimate trade. and they
intend to study carefully the details Of the
bills in order to keep them within the proper
limits. Their idea is that every transaction
in futures should rest upon the foundation
Of an actual crop Of grain or cotton, 10 esse
or In posse. The existence of such a crop
Of grain or cotton being granted, the
farmer may sell 10 for future de-
livery, and his contract to deliver
given amount may be sold as many times
over as the convenience of commercial
transactions requires. The dealing In
futures. when there is anything substantial
10 deal with, both Senator Washburn and
Representative Hatch insist they do not ins
tend to hamper their purpose is TO separate
thcbo AcSAblluAbo bIhuadcNlOuo ATOtu Wu6b
they consider the illegimate ones where cons
tracts for future delivery are sold without
any produce behind them and without any
expectation that they will be delivered.
wAsHBURN's AMENDMENTS.
Senator Washburn, In order to make 10
perfectly plain that his bill shall not inters
fere with legitimate sales for future de-
livery, has prepared an amendment to his
defiuition OF futures. The amendment ex-
tends the exemption from the definition OF
prohibited futures to persons who have
| acquired the right to the future possession
OF products, as well al TO those who actually
hold the products. or handle them as
agents. The first part Of the definition,
with the amendment added, now reads
| thus:
THAT for the purpose of this act the word
| futures shall be understood to mean any
| contract or agreement whereby party con-
tracts or agrees TO sell and deliver to an
other or others at a future time, or within
designated period, any Of the articles mems
| toned In section 3 of this act, when, at the
time OF making such contract or agree
ment, the parties so contracting or agreeing
| to sell and make such delivery, or
the party for whom he acts as agent, broker
or employe In making such contract or
sgreem ent, is not the owner of the article
or articl es so contracted or agreed to be-
| sold and delivered, or has not theretofore
acquired by purchase the right to the fu-
ture possession of such articles or article,
| under or virtue of a contract or agreement
for the sale and future delivery thereof.
previously made by such owner"
EFFECT OF THE CHANGE.
| This change, In the opinion of Senator
| Washburn, makes 1t clear that the defni-
tion does not apply to contracts based upon
actual merchandise. The contract for future
| delivery made by producers, it is supposed,
| will be of the same character as her etofore,
imposing personal responsibility upon
each person handling them and not merely
a lien upon the crop. II the crop
| itself were the only guarantee
OF delivery the embarrassing necessity
would be imposed upon each person hand4
ling a contract to inquire whether the crop
it represented was genuine or had failed,
This is not the present system however. and
Senator Washburn and Mr.. Hatch both say
that the proposed legislation will make no
change in this regard. but that each pur-
chaser of contract will look to the imme.
diate seller for fulfllment.