St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-01-15
BANKERS PROTEST..
Formal Opposition of the Clear
ing House Association to Wash
burns Bill.


ing House Association to Wash
burns Bill.
Several days ago it was noted that
the Minneapolis Clearing Houses as
ISOLATION had appointed committee to
investigate the merits and dement's of
the anticipation bill introduced In the
United States senate by Senator W. ID.
Washburn. Yesterday another meet
ing of the clearing house association
was held at the Security Bank. The
committee on the anti-Option bill handed
II the following.
To the Minneapolis Clearing House Asso-
ciation-Gentlemen The undersigned were
appointed by you as committee to consider
and report 10 you our conclusions upon SEN
ale Blll 10: 90 offered in the United States
senate Dec. II, 1891, by Mr.. Washburn. en-
titled "A bill defining options and 'fut-
ures, and imposing special taxes On dealers
therein. and for other purposes
Any consideration of this bill must be pre-
faced by an acknowledgment of the fact that
lllegitmate speculations do exist in the com
modities named in said bill, and to such an
extent as TO be deplored. II is 10 be pre-
sumed that the object of this bill is to abolish
the trading resulting from the illegitimate
use of these options and future deal
ings.
Tour committee have carefully considered
It's provisions with view to determining it's
effects both incidentally and directly upon
the legitimate grain business from the bro
Queer 10 the consumer. in SO far as its rela-
tohs with the association are concerned as
well IS its relation with all others who are
called upon to furnish the funds with which
to raise and market the crops OF our immedi-
ate section.
Much pains have been taken to obtain the
views of practical grain men who are famil-
lar with all the details of the business both
now, under existing option and '.future''
markets, and during the long period prior
thereto. when no such markets existed.
Mr.. Washburn himself, we understand
admits that. If the bill becomes a law no one
conld buy for future delivery except the man
ufacturer and exporter. This would. of
course, restrict all sales for future delivery
TO these TWO parties, so driving out of the
grain business the large class of elevator and
commission houses. and forcing the produce
er to sell his crop to one or the other of the
classes named,the manufacturer or exporter
In our opinion the legislation would inJure
the farmer-upon whose prosperity our
whole section is dependent-by restricting
| his market and inevitably lowering the price
| of his products.
We cannot but regard the dealing in the
| commodities named in this bill wheat. corn.
| oats. rye. barley, cotton. and all other farm
! products. also pork lard and all other hog
| products" as entirely legitimate on the part
| OF the elevator and commission houses not
WltDstandIng the -, fact that reckless
Il
| in them, and any legislation that
| contempiates by prohibitiye taxes doing
| away with all dealers in grain save the man.
! ufacturer and exporter and force the farmer
| to contine his sales for future delivery to
| those two parties, must be considered as
practically class legislation and therefore IN
| desirable.
| We should consider that If this bill became
| law, 1t could but result in seriously iDjuring
| the credit OF all our grain men by making Il
| Impossible Tor them TO protect their holdings
| by sales for future delivery, and If the farmer
| was prohibited from selling his crop for fut-
| ure delivery only 10 the exporter or manu-
| facturer, it would be at such low prices as
| would warrant the purchasers in carrying it,
| and result in putting the price Of wheat so
| low that it would greatly injure if not ruin
| the farmer.
| For the foregoing reasons, your committee
REGARDS this bill as impracticable and unde-
| sirable Impracticable In that il belongs to g
| class ofleglsiatlon that cannot be enforced.
| Undesirable for the reason that II it could be
| enforced, its injury to legitimate business
would entail much greater loss and democrat
| iZation than that which the bill seeks to
| remedy.
We, therefore. submit this report, with the
suggestion that upon due consideration OF
| the same the association should commune
| cate its views on the proposed bill to our SEN
ators and representatives, through some
| suitable committee. Respectfully,
| j. +. X. FosS. j. w. RAYMOND,
| s. A HARRIS, +. A. CHAMBERLAIN,
| Fl. G. SIDLE.
| Every bank in the city was represent
! ed at the meeting, and this report was
adopted unanimously. The clearing
house association will appoint COM
mittee to carry out the suggestions
found IN the foregoing report.