The great West. [volume] (St. Paul, Minn.) 1889-18??, 1893-01-06
CULTURES" AND "oPTioNs.s


..FuTUREs' AND OPTIONS"
Such Dealings Do Not Constitute Lesit-
innate Business Transaction.
The line between fictitious sales
aud sales of actual PROPERTY should be
clearly drawn. There has been per-
sistent effort ON the part of those who
are opposed to any legislation on this
subject to convey the impression that
the effect Of such legislation would be
to cripple and interfere with legiti-
mate trade. Most of the arguments
in fact that have been made, have
actual property even could not be
made for future delivery under law
prohibiting dealing in options. And
in this way very many have been
misled and deceived. Dealing in
options is nothing more than gam
bling. pure. simple and absolutely
cold blooded writes Hon. w. D.
Washburno in the American Journal
of Politics. Its devotees do not con-
template the delivery or receiving Of
property and do not suppose that
there is an instance on record where
any property passed. but it is simply
! a bet on what the value of that prop
erty will be at given time in the flu
ture. I think even those who are op-
| posed to legislation against it do not
claim that there is anything in deal
ing in options" except gambling.
For example, A sells million
bushels of wheat if you please. to b
to be delivered next December. A
never has had a bushel and does not
expect to have. and B. who has made
the purchase never expects that A
will deliver the wheat to him at the
time specified in the contract but on
the expiration of the contract the two
gentlemen make a settlement on the
basis of the price that wheat may
bear at the time specified. There is
no ownership of property; there is no
change of property; there is no legiti-
mate transaction. 1t is simply bet
on the part of the two operators as to
what the price of wheat will be at the
time designated. So that this. as in the
case of options simply becomes a
wager as to the price of property at
a given time in the future and finally
resolves itself into bet and nothing
more. All assumed sales of property
! where there is no ownership. where
operators on boards of trade assume
to sell property wheat pork or
cotton on exchanges where there
is no ownership where no delivery
of the property is expected to be
made. should be placed under the bar
of law. l cannot see how any mer
chant doing a legitimate business. OF
banker is to be affected in the slight.
. est degree by the passage of Law
making such sales illegal It would
not touch commerce. excepting. per
haps. the bank which acts in man,
cases rather as holder of stakes
These transactions as we all know
are carried on exclusively on margins
These margins amount to enormou
sums of money. and. of course. ar
. deposited IN different banks l cal
see how banks with such deposit
f would be affected unfavorably be
+ cause deposits of this kind are YER,
q large
a These people talk about lettering
commerce. Let me ask how com
j. merce can be fettered. obstructed. re
stricted. or in any way interfere
with under the provisions OF shch
law? 1t would only suppress gamb
ling and nothing more, and gambling c
:, the most vicious character that ha
!, ever existed. compared with whic
the Louisiana lottery is but Sunda
school. How can commerce. no,
a can trade. how can any dealings Of tn
+ merchant be affected by the fact tina
! the gambler or operator cannot Sc
for future delivery millions of bushel
= of wheat and thousands of bales {
n cotton that do not exist? What is th
commercial feature of such q transat
!. ton. and in what possible way can
affect trade. excepting by creating
!, condition OF uncertainty? From tn
a best information have been able
;, obtain. at least 90 percent of the sale
on the Chicago board Of trade are {
\. this fictitious character where n
property is actually owned, no prof.
a erty sold or delivered. or expected I
be delivered. but slmp wagers or be-
~ as to what property may be worth I;
a designated time in the future.
~ has finally come to this that th
> operators on boards of trade fix price
q of different articles without regard I
the law of supply and demand" {
q any natural conditions whatever.
Is that the business of the country hi
q reached crisis that is absolutely I'll
- bearable; so that the boards of trad,
d which are necessity in conductin
.s the commerce of the country hay
~ been subverted from the uses ar
10 purposes for which they were create,
: and have been turned into gaming r,
7 sorts where the great products of tn
A. country are made the basis and foo
"a ball of gambling transactions; so til
II wheat aud cotton have become
" much gambling tools as chips on IL
~ faro bank table. The property of Il
N wheat grower and the cotton-g
% is treated as though it were
. stake put on the gambling table
az Monte Carlo The producer of whe
IN is compelled to see the stacks in h
at barn dealt with like the peas of
NJ thimble rigger or the cards Of
10 three card monte man. Between t
be grain producer ard the loaf eat
nr there has stepped in parasit
IT saying at what price one shall 81
w and the other buy-a parasite /
tween them rObbinr them both