The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-02-10

tee on agriculture or the house OF
representatives today began its series
of hearings on the various anti
option bills pending in congress. The bill
which is most likely to receive the sane
lion of the house committee 10 the one
presented by Mr.. Hatch, the chairman,
defining options and futures, and impos-
Ing heavy special taxes on dealers therein.
G. Wood Davis, the well-known statis-
hcian of Kansas, appeared today in advo-
sacy of the bill. My sole business" said
be, SIS that OF a farmer and producer.
Finding this business Improbable
N recent wears 1 was impelled to
IN investigation of the causes
Of the depression in prices of farm prod
ducts. l started to work procuring data
rom all parts of the world, official and
otherwise. / found that up to 1884 the
world was producing more wheat and
breadstufs than it required A large &C.
emulation 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 lSS4there
were 400,000,000 bushels OF wheat piled
up in the farms and other granaries of
the world. Since that time we have in
sense drawn upon that surplus. Now, it
follows logically that when the world is
producing less than il consumes, the
price of wheat and other breadstuifs
should increase. Yet such has not been
the case. Why is this? l will not 90 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 the tariff affects the farmer
materially Il am republican and a pro-
tectionistl, but it does in some cases. l
have no doubt, enhance the cost of neces-
sites"
Now after the year 1870 there had grown
up on the boards Of trade a system of deal
ing in fictitious or fiat products. This
system began with the short selling of
gold in Wall street during the war and
was carried into the exchanges of the
country during the seventh decade. Ii
became, so far as | can learn, disturb
ing factor about the first of the last de-
cade; that is, after 1850. Its influence
seems TO have grown with the years The
gentlemen on the other side of this ques-
ton tell US that in order to market farm
products of the country we must have
these new methods. Yet we marketed. l
think, more breadstuffs and pork rela-
lively to population ten years ago, before
this method came into vogue, than we do
today. If we were then able 10 market
our products without these methods why
can't we do it today? They tell us we can't
do 1t without the money. But there is
more wealth relatively in this country
now than there was fifteen years ago. Re-
Gently one OF the bankers of Chicago told
me there was more money tied mp in
margins on these future sales than would
paw for the entire visible and invisible
supply OF wheat three times over. The
heaviest visible supply of wheat we ever
had was 62,OO0O0O bushels. If the invisi-
bic supply was another 81, 100000 bushels
then Sl34, 100000 would move this entire
crop at ! cent per bushel. Now the con-
sumption OF the world has overtsken the
production. II wheat brought $40 per
bushel in Britain for the nine years end
ing in 1874 why should it not bring a good
price now with q lessened product per
capi,R2 1t is, | think, because Of the offer
ing of unlimited fictlcious amounts on the
markets without any regard TO the real
product. As a matter of fact the price. of
grain are frequently made in Chicago by
three or four men. l have here tele-
gram. received the other day. which says {:
'Pardrige is bigger than the market and
has sold freely all day
Now Partridge has for the last three
or four days dominated the market Of Chi
cago 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 him
self without regard TO the amount pro-
duced- young man in Chicago who
can raise $3.50 can throw 10000 bushels OF
wheat on the market at any time through
this system"
DO you think it is possible 10 put a
stop to this method by national legisla-
tom" inquired Mr.. Lewis.
81 think so. / should not be in Wash
ington If did not think so. The Butter
worth bill, the Hatch bill. the Brosius
bill or the WashDurne bill in the senate
will either of them put stop to this prac-
tice."
"You stated" said Chairman Hatch,
"that since 1884 the ratio of consumption
OF the world has increased over the pro-
duction of breadstnlfs. Now, since 1884,
is il not fact demonstrated by statistics
of the world that we have drawn greatly
upon the reserves of breadstufis that had
accumulated by reason of other conditions
up to that timer"
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