Los Angeles herald., 1892-05-17
GAMBLING IN WIND.
| A Chicago Board of Trade Man Denounces
the Specuiators

We present the views of an operator
who has been on the Chicago board for
twenty-four years. As rule the mem
bers Of the board of trade defend sop
ton" dealing, but this gentleman attacks
it quite savagely, and his reasoning and
statements will have all the more weight
coming from man ION the inside, as it
were:
CHICAGO, J Ian. 26. TO the Editor: Abol-
ish the trading pits" on our exchanges
and the business of the grain dealer
would be largely benefited; the prices re-
ceived by the producer would be from 10
to 25 per cent higher on the average, for
the reason that in years of comparative
scarcity the producer would realize the
full value of enhanced prices, while in
the years of great abundance he could af-
ford to sell at low prices by reason of the
increased abundance. This might not
suit the great professionals, who have
amassed great fortunes by selling wind,
which has produced another class equal
ly as pernicious to the real growth Of the
country, who buy wind or options. Nei-
ther of these parties contemplates the
handling of any real property, only max
ing a bet that the price will be such that
they will make profit by settling the
difference some time before the maturing
of the contract The trading month is gen.
orally several months, sometimes six or
more, distant, and the whole intervening
time is occupied by the two parties in al
ternately using every device to depress
OF advance prices The effort of these
two parties is such that it frequently
causes prices to travel several times over
range covering from 10 to 90 per cent.
of value of the option traded in during
the time, and often more than this.
The fact is, that without regard to the
actual amount of grain in store and not
withstanding that there may be an excel
lent cash demand and consumption, SO
much long and short stuff is thrown on
the market in such short space of time
that it is impossible to prevent decline
sufficient generally to wipe out the mar
gins of the long trader and transfer it to
the pocket of the short.
| say, then, if the trading pit can be
abolished either by Washburn's OF any
other bill the real business of the country
will not suffer. Real speculation in grain
or other commodities will always exist
| and cannot be abolished. Men will con-
tinue to buy in time of abundance and
hold against times of scarcity, but the
practice that prevails now is not specula-
ton, but mere betting and gambling,
and is doing incalculable damage to the
welfare and morals of the country. But,
say the gentlemen who are interested In
maintaining present methods, ''the poor
farmer will suffer and be at the mercy of
the wicked miller if you abolish the
gambling pits" If somebody could tell
me of any real benefit that the producing
or consuming class reaps from the wind
transactions of our boards of trade it is
something | have failed to discover.
Abolish the trading pits and the busi-
ness would be conducted by the receiv-
ing and shipping houses. There is al
ways an abundance of yield of grains to
furnish legitimate business for the num-
Der now engaged in legitimate business.
Do away with the gambling feature of
our exchange and the commission paid
by the speculative buyer would be the
same as it is for handling cash grain,
i. e., one-half cent per bushel. Real
business would largely increase, the COM
mission merchant would find employ
ment for his capital, a larger number of
persons would find employment in the
increased real business which would fol-
low, the young men who are now grow
ing up and wasting their time and life
in the pits would easily find other en-
ploy1nent, but how could the grain busi-
ness of the country be handled.
There would be consrmptive and
speculative buyer for every bushel OF
grain raised, if the option trading did
not exist, or rather, if it was known that
every sale was from a bonafde dealer,
who had the grain either in hand or con-
tracted for from one who did have it in
hand. The sale of any lot of grain OF
provisions ON the floor of the exchange
should be accompanied by the delivery
of storage certificate certifying that
such grain was in elevator, either in the
city or country, and the credit and re-
sources of the firm or commission house
making such sale would be behind the
transaction; the buyer would be careful
to make dealing with such firms as had
reputable standing and responsibility.
In turn, the seller would look care
fully to the responsibility of the buyer,
and matters of dispute, if any might
arise between the two parties, should be
settled by courts Of law, and not by any
rules of boards of trade. There is no
reason whatever for the existence of the
so called "option trading pitt on the
floor of our exchanges, and it should be
abolished entirely with the evils that
have grown from them, too numerous
to mention, but which are well under
stood by the trade itself, until our Chi
cago board, which used to be held in
high esteem, has come to be considered
scarcely above a den of gamblers, and
the commission firms but little better
than capper and solicitor for "busi-
ness" for Clark street gambling house.
Chicago Inter Ocean.
.gssss,. ACROSS THE WASTES. asszzaS
The aUIlen day dYaps on. nv deSf. :