The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-09-16
"FUrURtS" IN GERMANY.

lures" passed by the Farmers Congress
In Texas last month were remarkably
we'll written, presenting the evils and
dangers of future sales in strong
light. The discussion in Congress few
years ago brought out many facts of in
tercst. but the most interesting matter
bearing on the mootcd question we have
seen is contained in n letter written by
Mr.. William II. Curtis, from Berlin, to
the Chicago Record. 1t gives the expert
ence of Germany after the passage of a
law forbiddng the sale of futures" He
writes:
In compliance with the clamors of the
| agricultural classes the reichstag last
winter passed law proposed by Count
Won Kanitz and approved by the govern
ment forbidding speculation in food pro-
duets. The farmers have complained in
Germany as thew have in the United
States for many years that the value of
their produce was controlled by speculat-
ors in the cities who took well-known
measures to depress prices at harvest
time and then increase them at the ex-
pense of the consumers after they had
obtained control Of the crops. While
Their has been more os less ground for
these complaints the prices Of agricul-
tural products in Germany have been
generally fixed in London, which is the
worlds greatest market, and they go up
and down in obedience to the law of sup
ply and demand. Although this fact and
the principles which govern it were pre-
scented again and again to the relchstag
the government thought it good policy to
prohibit speculation in futures as p0liti-
cal measure because the agrarian party Is
becoming more numerous and vigorous
every day. But the effect OF the law has
been exactly contrary to what was de-
sired and intended. There was no special
penalty attached to its violation, but
speculative trading was placed on the
same basis as gambling and it was made
impossible to enable the terms OF a con-
tract in the courts.
AS soon as the new statute went into
effect the directors Of the boards of trade
and produce exchanges and other COM
mercial organizations throughout the
country were notified by the police, and
every body who is familiar with the
method Of enforcing a law in Germany
knows what it means. Inv the United
States trading would have gone on as
usual until some citizen made COM
plaint to the courts or the matter was
taken up by a grand jury. Then there
would be a test suit tried and carried
from court to court for period of years
until the Supreme court decided upon
the constitutionality of the law. But here
the people are not permitted to question
he laws of their legislatures or postpone
obedience When the police issue an order
it is promtly obeyed.
In pursuance of this habit nearly every
commercial association in Germany closed
its doors. Some of them formally dis
solved, others suspended operations in
definitely, In Berlin and some Of the
other cities the commission men formed
social clubs and rented and furnished
rooms for the purpose of trading inform
ally. The transactions were very similar
to those conducted on the exchanges, but
with less formality, and no record was
kept. Mr.. Dee agreed to sell Mr.. Roe TO-
Zoo bushels of wheat for October delivery
at a certain price and the latter passed 1t
on to the next one. There was a good
deal of trading of this kind. Some Of the
deals were purely speculative. but the
most Of them were genuine. No quota
tions were given to the public, but all
transactions were conducted privately
over glass of wine or a luncheon in the
private rooms Of the club.
| This business was allowed to go on I'M
| til a week or ten days ago, when the
government ordered the suppression of
| all such clubs on the ground that they
were intended to evade the law. There
was instant obedience, and since that date
| all sales of agricultural produce have
been conducted at the offices OF the COM
mission men and there has been very lit
| tie if any speculation. AS a consequence
| every trad els confidential and the farm
| err is entirely at the mercy of the buyers.
The government has attempted to help
him out by publishing daily in the official
gazette quotations from London, Paris,
Budapest. New York Chicago and other
cities. and has announced such sales as
its representatives could learn about in
the local market, but this has proved
very unsatisfactory. 1t is charged and is
nrohably true that the middlemen are
making the situation as awkward ana
embarrassing as possible. There is no
way of compelling them to report their
transactions and the farmers no longer
know what prices to ask or expect. They
assert that the middlemen have joined to
depress the prices of all cereals and other
farm produce is steadily declining. The
buyers in the country towns who act as
agents for the middlemen in the cities
offer less than the London quotations and
the farmer must accept their terms or
store his grain. The banks will not loan
money on crops. and the farmers who are
nowerless are now protesting in a most
vigorous manner against the enforcement
of the law which was passed for their
benefit Nothing can be done to relieve
them until the next session Of the reichs-
tag. which may be postponed for another
year. The doors Of the produce exchanges
are closed and locked, and it is claimed
that tho middlemen are making more
money than ever before.