New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1892-07-13
'WAsHBIJRN ON OPTION BILLS
sHe Makes j Set Speech ii Which He tells
Of the Evils Of Short Selling

He Makes i Set speechin Which Hs tells
Of the Evils Of Short Selling.
Senator Washburn Of this state got the
floor in the senate on Monday and deliy:
cred two hours speech on gambling u
grain. The Hatch bill, he said, was iaen.
teal with his own and did not interter e
with legitimate trade. Opposition to the
billsresults from misunde rstanding The
gamblers Of the board Of trade had los,
no opportunity to misrepresent the bill
and many businessmenWho had notread il
were opposing it. It is a system of deal
ing in futures which robs producers ane
fills the pockets Of spectators Will
money that he opposed, That system
is the most ingenious and pernicious ever
invented. Dealing in options is pure
gambling. It's simply betting what the
price of wheat will be in the future. HI
gave statistics showing that the acreage
Of wheat decreased, while the population
increased and that prices declined in the
face Of these facts. The decline, he said
is owing to the artificial prices and the
fact that the short seller keeps constant.
II on the market millions of bushels OF
fictitious produce. He denied that the
anti option bill interfered with whole
sale grocers, and said he had amended it
to meet that feature. So long as specu-
lation is based on ownership there are no
restrictions. Merchants have been I'M
necessarily alarmed at the bill. They
will not be affected in the slightest de-
gree. Bankers who have large deposits
which represent margins, may be affect
ed, butin no other case is legitimate
commerce affected.
Wheat gambling is more vicious and
damaging than theLouisiana lottery. The
system of short selling was invented in
= Il { &
Milwaukee 25 years ago. Ninety per cent
of the business transacted on boards OF
trade is fictitious sales of fictitious value
in Chicago are % per cent. It has be.
come 50 that operators on boards of trade
fix prices without re gard to the law Of
supply and demand. They make wheat
and corn like chips on faro table The
farmers see their products manipulated
as three card monte men manipulate
cards. Great Britain, the heaviest i'm
porter ofwheat, passes laws to prevent
raising prices. Why should not the
United States, the heaviest exporter, pass
laws to prevent depressing prices?
The senator discussed the bull argu
ment that there is a buyer for every
seller. He said the corners did not ben.
eft farmers, because they collapsed be-
fore the purchaser can get the property
to market. Short selling does not in.
crease the number Of buyers Of the act
ual product. He gave figures showing
that if America would keep steady mar
kets Europe would respond. Every de
cline here is followed by break in Eur
ope. He said the price Of wheat should
be 30 or 80 cents higher than it is. Thu
continual decline in Europe is not thu
result of conditions of trade, but ow
ing to our own manipulation. He saie
the unaccepted offers frequently depress
ed the market There are many spuri
Gus or sswash" sales which make lowe
prices. Long buyers buying are just a
destructive as short sellers. His realiz
+ ing sales often serve to break the marke
Henderson asked if it was not tru,
that the farmers sometimes got the bene
fit of an advance in the market which
was caused by bull speculation. Wash
burn replied: 'sAs a rule farmers did no
have time to get wheat to market on thu
advances The senator said he regret
ted that public sentiment had become 81
dull that gambling in grain is looked VI
on as respectable business.
The senator denounced the short sellers
as parasites who rob both producer ane
consumer. In regard to the threat O
operators that they will transfer thei
business to Canada, he said a great man,
persons engaged in questionable transac
lions found it convenient to immigrat,
to Canada. He would say to them $50
stand not on the order If your going,bu
go at once
He spoke about the unequal distribu
Ition Of wealth. He said it was not ow
| ing to the tariff or mercantile trade, bu
the system of gambling and wreckins
prevailing on boards Of trade and stool
EXCHANGES. Farmers are now aDpealins