New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-02-15
HE ANTI-OP1ION BILL.
PERPLExING QUESTION FOR THE COMMITTEE
CHAIRMAN HATCH's VIEWS.


Washington, Feb IL (spcciaD.-That much light
has already been she'd upon the question by men who
have appeared before the House Committee on Asri
culture by who have appeared at lis hearings
Mr. Iachs bill to tax dealers in options and futures
IS frankly admitted by It's members. most OF whom
were at first ready TO condemn indscrminately all
dealing in futures OF whatever description Now. they
are willing TO concede that certain kind OF dealing In
futures is legitimate and probably beneficial to
producers OF the commodities bought and sold In
conversation with Tribune correspondent today
Chairman Hatch. OF the committee. said
Il Will explain what | regard legitimate dealing
in futures. There is company. which has elevators.
say at Minneapolis and Duluth and scattered through
out Minnesota and the Dakotas II has other elevators
10 which the farmers bring and sell their wheat Tor
cash delivery. This wheat is sent forward 10 Min
neapolis and Duluth rapidly as practicable \
Saturday night comes. say in september. when the
company finds itself with 10000 100 600 bushels
OF wheat hand. and 1t wires It's broker I'm New York
to sell that wheat. be delivered in December In
the meantime it bOrrOws money in Boston, say at "A
low rate OF interest TO carry the wheat warehouse re
ceipts for which accepted as collateral In this
the farmer finds ready cash market for bis wheat
at current prices and the elevator company Is enabled
to hold il until and vessels be obtained 10
transport it and also to make profit on the transac
ton. Now regard that sort OF business strictly
legitimate but when the In Newly ork, who has
bought the wheat for December delivery. sells II to
another and he to another and until the same
wheat has been sold perhaps thousand times before
IL is actually delivered once. that the transaction
is legitimate and is injury 10 the producer OF
course IT IS a delicate matter to attempt 10 lcgslac
about
How do these successive sales OF the same wheat
lniuIe the producerl7 asked the correspondent.
In my opinion the great volume Of busness-the
imitation to speak-by magniying the apparent
visible supply tends to depression OF prices. For
every bushel OF wheat actually in existence there are
sales representing hundreds OF thousands Of bushels
and the effect Of such sales must be detrimental TO
producers"
How can Congress suppress and prevent such
transactions ?"
by the exercise Of the taxing power was done
In the of olcOmargarne OF course II Is delicate
matter and which presents many difficulties for
a clear distinction must be made between transactions
which are legitimate and those which are not Thu.
far ! have heard objection from the opponents 81
the bill 10 the first section. which defines an option
to any contract whereby party thereto, or
any party for whom. In whose behalf such contract
agreement is made. acquires the right or privilege,
but is not thereby obliged 70 deliver Ia another NJ
a future lime. within designated period any
of the article mentioned IN the third section when are
cotton. wheat corn, oats, barley, rye PORK, hfl
bacon and other edible products OF swine