Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-06-22
FRIDAY. JUNE %, 1894
The Anti Option Bill.

According TO our Washington correspon-
dent, Mr.. Hatch's snti-option bill has
been mistaken by some of the totai-ab-
stinence men In Virginia and elsewhere
for q bill opposing local option on the
LIQUOR question. Whilst this statement
may be intended as a joke only, the
debates In the House Of Representatives
show that there Is q plentiful lack OF
Information among the members on this
important subject. The title Of Mr..
Hatch's bill Is as follows: "a bin Oh H.
7O00 regulating the sale OF certain asri-
cultural products, defining 'options and
futures and imposing taxes thereon ana
upon dealers therein" The word "op-
tons" is clearly defined In Mr.. Hatch's
bill--as follows,
section I. That for the purposes Of this
act the word options shall be under
stood TO mean any contract whereby
party thereto. or any person for whom
or in whose behalf such contract Is made.
acquires the right or privilege, but Ia not
thereby obligated, to sell and deliver to
another at a future time. or within
designated month or other period. or any
contract whereby, as vendee, party
thereto, or any person as vendee. Tor
whom or in whose behalf such contract
is made, acquires the right or privilege
of demanding and receiving from another
at a stipulated price, at future time'
or within a designated month or other
period, but Is not thereby obligated to re-
ceive and pay for any of the following
articIes-namely: Raw or manufactured
cotton, hops, wheat. corn. oats, rye, bar
ley, pork, lard. bacon, dry-salted meat,
or picked meat"
Mr.. Hatch further defined In the House
of Representatives his contention In this
behalf. declaring that these dealers IN
futures and OPTIONS have contracted
10 deliver cotton. but they have delivered
wind. '"rhey have contracted TO deliver
wheat but they have delivered vino"
In other words, where a dealer contracts
TO deliver so many bushels OF wheat or
pounds of cotton on n certain day ana
when that day arrives wheat or cotton
is selling for more than 1t was worth
when the contract was entered into, the
contractor is not required nor even ex-
pected to deliver the article, but Is al
lowed 10 settle the account by paying
and the price that obtains on the day
fixed for delivery. This is what Mr.. Hatch
calls delivering wind"
The opponents OF the Hatch bill con-
tend that this sort OF dealing in futures
and options might possibly result to the
advantage of the growers of wheat and
cotton. And Mr.. Hatch himself candidiy
stated that in his judgment Congress has
no power under the Constitution to regu-
late these sales upon boards OF trade
except by the exercise OF the power OF
taxation. And az to this power of taxa
ton, he said that when statute becomes
a law there is no power in the courts 10
go behind that law and inquire into the
motives Of Congress or any member OF
Congress as to the subject-matter of that
taxation. The reader will recall at once
the fact that the advocates OF the re-
peal of the 10-per-cent.-tax law are thus
contradcted by MIR. Hatch.
Mr.. Hatch's bill defines 'futures' ~
follows:
Section q That for the purposes OF this
act the word futures shall be under
stood to mean any contract whereby
party thereto. or any party for whom
or in whose behalf such contract Is made.
contracts to sell and deliver to another,
at a future time. or within a designated
month or other period, any raw OF I'M
manufactured cottoI, hops. wheat corn,
oats. rye barley, pork. lard, bacon, dry
salted meat. or picked meat"
Mr.. Hatch declared In the House Of
hat tho mi ,nAa
lying the whole OF his bill IL the princi-
pie that whatever Is sold for future do
livery shall be in good faith delivered
not delivered on the board of trade by
paying the ''bet" in money: for bets all
these contracts seem TO be.
Mr.. Hatch further said:
mo man on this floor has higher
regard for what is known as legitimate
speculation in these products than have.
] would not. II l know my own heart
and Judgment, undertake to prevent L.;
and would erase from that bill any sim
gle word or any sentence or paragraph
In 1t that would interfere with the free
and unhampered and legitimate specula-
ton in the commodities produced by the
farmers OF the United States. like II;
! want TO SEE every legitimate merchant
who IL willing - sell the farmers product
for present or future delivery. have the
right to do Il. But when he pretends to
sell wheat or cotton I want him to de-
liver wheat or cotton. and not terminate
the contract by some system that ends
simply In gambling transaction at last"
Here Is a weak spot in MIR. Hatch's
argument, II seems to us If there Is
such thing as Legitimate speculation"
In wheat, his bill will. II it ever becomes
law. as we do not think it will. put
an end even TO that sort of speculation.
Tho members OF the House OF Repre-
sentatives will not divide on party lines
on Mr.. Hatch's bill.