The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-04
WAR UPON OPTIONS.
Testimony Before the House
Committee on Agriculture.
HATCH ON GRAIN GAMBLING.
Murray Nelson Defends Chicago Board
shops and Legitimate Exchange.

WASHINGTON CITY Feb. S-The commit
tee on agriculture of the House today be-
gan hearings on the various anticipation
bills pending in congress Wood Davis
the weli-known statistician of Kansas,
appeared today IN advocacy of the Hatch,
bill. He said:
viii not go into the question of the effect of
the tariff or the currency supply upon the price
OF these commodities. | cannot see that the
question of tariff affects the farmer materially.
Since the year 1870 there has grown
upon the boards OF trades q system
OF dealing in fictitious farm products
It's influence seems to have grown
with years. The gentlemen on the other side of
this question tell us that in order 10 market the
farm products of the country we must have
these new methods, yet marketed, l think.
more oreadstutfs and pork relatively TO the pop
uiaton ten years ago. before this method came
into vogue. than we do today. If we were then
able TO market our products without these
methods why cannot we do so now? They
tell us that we cannot do it without money,
out there is moro wealth relatively in this
country now than there ten or twelve or
fifteen wears ago. Now the consum ption OF the
world has overtaken the production. If wheat
was bought at sl.7o per bushel in Great
Britain Tor the nine years ending IN
1874, why should it not bring q good
price now with lessened product per capitaf
u
limited fictitious amount on the markets with
out any regard to the real product As a matter
OF TACT, prices OF grain are frequently made in
Chicago by three or four men.
Just before adjournment Murray Nelson
and others, representing the Chicago
Board of Trade, laid before the committee
voiuminous memorial in opposition TO
anticipation legislation The arguments
of the memorial are chiefly:
That boards of trade are essential TO the mar
keting of the farmers produce, and that dealing
in options aud futures is stimulus necessary
TO the maintenance of boards of trade 1t as
serts that the extent TO which produce
gambling is carried on in the legiti-
mate exchanges of the country is
Immensely exaggerated. Gambling in produce,
gambling pure and simple, is carried on in
bucket shops This form of gambling, says the
memorial, is and has long been fruitful source
OF agricultural depression and rigorous fed
eral bucket shop law vigorously enforced Will
go lar towards accomplishing the end that is
sought
The laying of wagers in thousands of bucket
shops on quotations OF produce as they are made
in the great marts of trade, creates a powerful
concentrated interest for the depression OF val
ues. The extent TO which the bucket shop
influence is responsible for the agricultural
depression complained of is not, the Chicago
gentlemen fear, fully appreciated. The me-
mortal does not apprehend that congress con-
POUNDS the bucket shops with legitimate ex-
changes. Such thought, il says. would be an
insult 10 your intelligence.
Boards of traie are necessity OF modern
commerce; they enable producers % and
market AZ any time Tor surplus grain. cattle,
hogs, ETC. at far better average prices THAI
could otherwise be obtAined IL Is through
the medium Of boards OF trnde that
capital is supplied Tor carrying "a
the countrys surplus products dur
ing the long aud wearisome period that must
intervene from the tins they leave the posscs-
sion OF needy producers until taken By the tardy
and reluctant consumer Destroy the system
Of contracting ior the purchase and sale
OF agricultural commodities for future 90
livery BY imposing pFohibitiVs
tax. aud a very large proportion 1T the capital
thus employed wiii SEEK other channels fur to-
Vcstmcnt The farmer may rid himself "a to
mtddleman, bat he sitl also Dc besft az ths
market AZ the same time.
The committee ON agriculture sill have
hearings daily upon this subject Cor one
Week