The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-08
HATCH'S ANTI-OPTION BILL.
The Chairman Finishes His Report on
the Measure.

The Objects Sought for to Obtain Reve-
nue., to Relieve the Producer of the
Destructive Competition of Short
Selling, to Restore Fres Action to
the Law of Supply and Demand-The
Principle of the Bill as Old as the
| System of Commercial Trading.
Washington, May 7.-Chairman Hatch
of the House committee on agricultures,
finished his report to-day on the anti-op-
tion bill. The report recites a number of
objects sought by the proposed legisla-
tion, as follows:
First-To obtain revenue. 1t will pro-
vide constant revenue TO the govern
ment at a minimum cost.
Second-To relieve the producer Of the
destructive competition TO which he is
now subjected by the offering upon ex-
changes of illimitable quantities of ficti-
tious products by those who can not ter
inmate the contract by actual delivery of
the articles
! Third-To restore to the law OF supply
and demand that free action destroyed by
short selling" BY the practice of short
| selling where not to excel one-tenth of
the grain grown is marketed, prices are
determined for the entire product, and
| often months in advance of sowing the
seed, thus despoiling the farmer and
| planter OF voice in fixing the price to be
received from the product of his labor and
| capital.
Fourth-That the market quotations,
now made by the limitless offers of fiat
products by the "shortseller," regard
less Of the volume of the actual product
in existence, may again be determined by
the offerings of real products by the
owners thereof, and thereby limit to the
amount actually existent the offerings of
the staple products Of the farm.
| Fifth-To prevent the overlooking of the
domestic markets, and the breakiug
down of the prices of farm products by
''short sales' made by foreign merchants
| for the purpose of insuring them against
the possible loss on purchases Of foreign
| produce.
Sixth-By restoring the functions of the
law Of supply and demand, now inopera-
! tive.
PRINCIPLE OF THE BILL.
The fundamental principle Of this bill,
the report states, is as old as the system
of commercial trading, and for 100 years
| or more in this country was not only the
basis Of all transactions, butwas honestly
and universally adhered TO, and that is
! that the seller shall be compelled in good
| faith to deliver the commodities sold at
the time and place specified In the con-
tract. This bill provides that every con-
tract made for future delivery Of these
commodities shall be terminated by an
actual delivery, and not an evasive or
simulative one, of the commodities sold,
and provides suitable penalties for the en-
forcement of the requirement.
The legislation, the report continues,
has been demanded by thousands of rep
resentative men throughout the United
States. Not protest has ever been filed
with the ecommittee against this legislation
excepting from that class of persons who
are interested in speculative gambling"
or in upholding the system Of evading
actual delivery on contracts made as
members of the different boards of trade
in the United States
OBJECT OF THE BILL.
The committee, in framing this meas
ure, have kept constantly in view the ear
nest and Conscientious desire to interfere
as little as possible, with the legitimate
trading and legal speculation uron the
boards Of trade throughout the United
States. They regard legitimate specula-
tion as wholesome and proper,
and agree that it should be en-
couraged, while speculative gam
bling" should be, if possible, destroyed
! Under the bill proposed, the seller only
is reached, and this is right. He Is the
one who supplies the demand. IT, should
be the privilege Of every one to buy, and
| the direct buyer is the friend of the pur-
/ chaser, for he buys with the hope of sus-
| tanning and advancing the market. To
! have this demand met with an artificial
supply is antagonistic to the interests Of
the producer, and through him antagon-
istic TO all commerce.
FORMER OBJECTIONS MET.
The opposition to this bill will be differ
| ent from that which had to be met In the
| bill which was before the last congress.
| Every argument urged against that meas
ure is met in this. Legitimate buying
and selling is not disturbed, futures can
| be sold TO meet urgent demands Of manu-
facturers buyers in the interior can sell
for future delivery at commercial centers /;
| sellers in Chicago can answer demands
| from buyers in New York, and no legiti-
mate factor in commerce will bo EN- bar
rassed by the provisions required on the
termination of contracts.
NOT UNCONSTITUTIONAL.
The question has been raised from the
beginning of the investigation of this sub
! ject that any measure looking TO the con-
! troll Of the nature of contracts would be
unconstitutional and void. The reply to
| this has been so often made, and so often
| proved Dy Jne courts, luCluulnR Lue Su-
| preme court of the United States, that it
| is not deemed worthy of argument or
controversy. The power Of the federal
government over the subject of taxation
| Is plenary and unlimited, and entirely
| within the control Of the legislative
| branch Of the government.
The small tax in the nature
of a revenue stamp placed upon
| legitimate contracts for the pur-
pose of Identification, is insignificant in
| amount, and will add but little to the cost
! OF the existing system Of trading on
boards Of trade, where all such contracts
| are required to be in writing. EXPIRES
sions have been received from large num-
| bers of members OF boards Of trade
+ throughout the United States that such
restrictions will not be regarded as either
| oppressive or offensive to that class Of
merchants who do not deal in "specula-
| tive gambling" but whose operations are