The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-07
WHEATDEALSON MARGIN
A WESTERN BUYER DECLARES
OPTIONS A NECESSITY.

Heavy Buyers Obliged to Purchase
Options on the Exchanges in Order
to Guard Against Possible Losses in
Elevators-Mr Aldridge Denies That
Short Selling is Responsible for Low
Prices.
WASHINGTON, Feb. GA. J. Sawyer Of
Minneapolis, who was before the House
committee on agriculture two days ago In
opposition to the anti-options bill, to-day
continued his statement to the COMMITTEES
respecting the system of business practiced
by large wheat buyers Of the northwest ank
defending the custom Of buying options e
the exchanges to cover the possibility o.a
loss on wheat in elevators.
Mr.. Moses said that cotton brokers some
times lost money through spot cotton going
down while futures were going up, ano
asked Mr.. Sawyer If he was not liable II
loss in this way.
Mr.. Sawyer admitted that he was, ana
said that he had TO take that risk in bust
ness.
EFFECT OF SELLING SHORT.
II. H. Aldridge Of the Chicago Board Of
Trade was then given an opportunity TO fin
ish the statement he had heretofore made.
He said that yesterday a statement had
been made that any other explanation OF
the decline in prices OF cereals than short
selling" was childish. 1t was per.
haps worth coming to Washington CO
hear that Edward Atkinson, David A. Wells
and the expert of the department of agri.
culture we're children, and he read from
articles by these men to the effect thai
prices in years past had been regulated
strictly by the law Of supply and demand
throughout the world. 'Short" selling t0
his personal knowledge was very common
twenJy-two years ago.
FUTURES A NECESSITY.
Mr.. Hatch asked il there would not be a
healthy demand all the year around il the
system of buying futures were abolished.
Mr.. Aldridge replied that possibly thai
| might be so, nut the miller who made his
European flour contracts six months ahead
could not without the future system agree
to deliver -four abroad, because he did NOS
know the price OF wheat six months hence.
The time given Mr.. Aldridge having exs
pired he filed articles he had quoted from.
HATCH GOES FOR DODGE.
Mr.. Hatch said that the members Of the
committee who knew that the expert of the
agricultural department. who had beer
quoted was Statistician Dodge would know
what weight was to be given to his state
| ments. Every tobacco dealer remembered
that his report several years ago upon the
tobacco crop (Which report he published il
advance of the CROP had cost the tobacco
growers Of Kentucky, Virginia, North
Carolina and other states 25lper cent. OF the
value of their crop. and Mr.. Dodge wal
compelled two or three months afterward
to take back the report after the farmers
had been robbed Of a large part of theia
| crop.
Mr.. Funston Of Kansas-lf you want to
| impeach Mr.. Dodge you had better give
! him a hearing
Mr.. Hatch-I will be very glad to do so
the gentleman from Kansas is familiar With
the facts, and they are as / have stated
| them.
Mr.. Funston-I would prefer to try Mr..
Dodge before we hang him.
FUTURES AS WIND SELLING.
| II. Mattullath Of Indianapolis next at.
tackled dealings in futures As wind selling
that injured the producers. This gentle.
man concluded his argument with a critl.
cism OF the old Butterworth anti-optioni
bill, and laid before the committee meas
ure he bad framed. 1t was 10 its main feature
similar to the options bills now before ths
committee. IL requires that sellers of farm
products must prove that they own the
things they sell; that sales shall be recorded
by the government, and federal supervision
exercised over the business. Heavy penal.
ties are provided for violation of the law.