The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-02-07

WASHINGTON, Feb. GA. J. Sawyer oi
Minneanolis. who was before the house
committee on agriculture two days ago IN
imposition to the anti-optiOn bill, today
continued his statement respecting the
system of business practiced by the large
wheat buyers Of the northwest ana de-
Tending the custom OF buying options on
the exchanges TO cover the possibility OF
loss on wheat in elevators He said that
The speculator carried the surplus OF the
actual wheat buyers under the option sys-
TEN. and enabled them TO sell their wheat
from time 10 time, as fast as 1t could be
disposed Of If the wheat in store could be
moved forward the market would be glut-
ted and cash wheat would fall TO very low
prices By buying futures against the
wheat he had in his elevators, the elevator
owner insured himself against loss.
Something had been said about the high
prices OF farm products twenty or more
years ago. compared with the prices of to-
dav The farmers then had a tariff on
everything they exported, though they
did not know it. The tariff was the prem
ium on gold Wheat advanced l cent
with each advance Of l cent in the prem
iUm on gold. The cost of labor, however,
did not advance for some time; so that the
farmer was getting cheap labor and high
prices. Since the resumption of specie
payments the price of labor had not re-
ceded, while the price of products had de-
clined.
Nir. II. II. Aldrich of the Chicago board
of trade was then given an opportunity to
finish the statement he had heretofore
made.
Mr.. Moses asked him If there would not
be healthy demand all the year round
if the system of buying futures were
abolished.
Mr.. Aldrich replied that possibly that
might be so: but the miller who made his
European flour contracts six months
ahead could not, without the future sys-
tenn, agree to deliver flour abroad, be-
rause ne did not know the price of wheat
Six months hence. The time given to Mr..
Aldrich having expired, he filed the
articles that he had quoted from.
Mr. Hatch said that the members Of the
committee who knew that the expert of
the agricultural department who had been
guoted was Statistician Dodge would
know what weight was to be given to his
statements. Every tobacco dealer remem-
bered that his report several years ago
upon the tobacco crop (Which report he
published in advance of the crop had cost
the tobacco growers > per cent. of the
value of their crop. Mr. Dodge, he said,
was compelled, two or three months after
ward, TO take back the report" after the
farmers had been robbed of large part of
their crop.
Mr.. Funston Of Kansas--If you want to
Impeach Mr.. Dodge you had better give
him a hearing.
Mr. Hatch-T viii be glad to do So The
gentleman from Kansas is familiar with
the facts, and they are as / have stated
them.
Mir Funston-I would prefer to try Mr..
Dodge before we hang him.
Mr. Mattulath of indianapolis next at
tackled dealings in futures, as wind
selling that injured the producers. The
greater part of the trading IN wheat was
done between Octobor and April, and
during that time the farmer had to ac-
cepJ the depressed prices caused by the
short seller Along in the spring there
might be n bulge in prices, but that did
not benefit the farmer, because be pre-.
viOusly had been compelled 10 sell his crop
The owner of wheat, he explained, saw the
unlimited quantity of wheat that the
''seller of wind offered on the market
became fearful that the consumption
would never catch uD under such circum-
stances, lost heart and dropped his CON
tracts. Nobody could tell which was ac-
Iuai and which was wind selling" and
as "A consequence of there being 100000 600
bushels OF wheat sold where JO,GO0 600
existed, prices were kept down The
speaker then criticized the Butterworth
auUi-option bill and laid before the COM
mittee a measure that he had framed 1t
was, in its main features similar TO the
option bills now before the committee. Ii
requires that the sellers of farm products
must prove that they own the thing they
sell; that the sales be recorded 10y the gov
crumeut, and that federal supervision be
eNerc sed over the business Heavy penal
ties are provided for a violation of the law