Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1892-04-14
70 PREVENT DEALING IN FUTURES

bill Unanimously Reported to Correct
an Evil Against Which Farmers Cry Ont.
A recent Washington dispatch giving
m excellent summary Of Representative
Halch's bill to prevent by law the dealing
in options and futures is as follows:
Mr.. Hatch, from the committee on agri
culture, reported bill as substitute foI
the various measures before the commit
tee. defining futures and options and i'm
posing special taxes on dealers therein
There were four bills before the commit
tee. The bill received the unanimous
vote of the house committee, and in the
report submitted with it Mr.. Hatch. the
chairman. deals with the question in al
it's phases The objects sought by the
proposed legislation, the report says, are
First-To relieve the producer Of the
destructive competition to which he il
now subjected by the offerings upon the
exchanges of illimitable quantities OF
fiat, fictitious products by those who dc
not own and have not acquired the right
to Che future possession of the article
which they pretend to offer and sell.
Second-To restore to the law of supply
and demand that free action which has
been destroyed by the practice Of short
selling, which practice has of recent
years become the one mode of determin.
ing the price Of such agricultural staples
as can be graded, while the ordinary
methods of commerce are found to suf
flee for those which cannot.
Thirdly the practice of short selling
now SO common upon the exchanges
where not to exceed one-tenth Of the
grain grown is marketed, prices are de-.
termined for the entire product ten
months in advance Of the sowing Of the
seed, thus despoiling the farmer and
planter Of that voice in fixing the price
to be received for the product of his
labor and capital which is accorded to
other producers
Fourth-That market quotations now
made by the limitless offers of fiat prod
ucts by the short sellers, regardless Of
the value or volume of the actual prod.
uct in existence, may again be deter
mined by the offering of real products
by the real owners
Fifth-To prevent the overlooking of
domestic markets and the breaking down
Of prices by short sales made by for
eign merchants for the purpose of in
surfing them against partial loss on pur
chases of Indian. South American. Aus
tralian and Russian products, whereby
the American farmer and planter are
made underwriters of the commercial
risks of those farmers.
Sixth-That by restoring the functions
of the law of supply and demand now
imperative by reason of the limitless
offers of the short sellers, a measure Of
relief will be given and prosperity par.
tally restored to the great class of pro
ducers who inhabit the farms.
Seventh-To restore to the producer
an honest market and set prices. and
such prices as will follow the unfettered
operations OF the law Of supply and de
mand
The report explains at great length
what are commonly known as puts
and calls" privileges and curb
trading" and in speaking of short
sellers" says there is abundant evidence.
that the outstanding contracts Of such
sales at all times exceed many fold the
amount available for delivery
The bill itself is voluminous docu
ment comprising fifteen sections. it,
provisions may be briefly stated rs fol
lows: .a
The word options" is to be under
stood to mean any contract under which
a party acquires the right or privilege \
but rs not thereby obligated TO deliver al