The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-14
LIVELY GRAIN PITS
Beneficial Results Of the War on
Bucket Shops.
FARMER AND TRADER BENEFITED
Business Formerly Diverted Now Co
ing Into the Legitimate
Channels.

Chicago, ILL.,, Jan. A.-John HILL Jr., sums
up the situation in regard to bucket shops
as follows: Wonder is expressed at the great
volume OF speculative business that is now
pouring into the grain exchanges, more par
ticularly the Chicago board of trade. II is
but the shadow Of what will come later il the
policy adopted by the board of trade of the
city Of Chicago is persisted in. During the
last six months of 1901 the number Of bucket
shops and bucket shop PATRONS throughout
the country decreased 90 per cent by reason
of the awakening of public sentiment against
an evil that had heretofore been looked upon
as semi-respectable. Another year should
witness the entire destruction of this vampire
that has sucked the life blood of the market
and cost the producers of grain, cotton and
hogs from 5 to 10 per cent of their value
each year for twenty years past. do not
believe 1t has been possible until now 10
estimate with any degree of accuracy the
stupeIdous destruction they have wrought to
values and legitimate business. In the month
of May, 1901, there were between $50 ant: 500
bucket shops in operation in the United
States; this was a noticeable reduction from
previous years, being only about so per cent
Of the number operating in 1895, when the
Chicago board of trade first adopted intelligent
methods to eradicate them.
For year past have been making care
full Investigations. find that the average
PRETENDED LraQe per bucket ShOp per day DUR
ing the irst half Of 1901 was about as follows;
Twenty thousand bushels of grain bought
and sold, 500 barrels of pork, 200 bales of cot
ton, 300 shares of stock bought and sold
Taking the $50 bucket shops operating in
May, 1901. each pretended to buy and sell an
average Of 10000 bushels of grain per day, or
total Of 100000 per day, or 1850, 600, 900
per year. the commissions at full rates on
this vast volume of trade Ii diverted into
legitimate channels would amount to $18, $50
per day, or $5,625,000 per year. Is it to be
wondered at that the grain exchanges have
been languishing?
To-day probably less than 400 bucket shops
are in operation, as they fade away before
the condemnation of the courts and the
aroused public sentiment; the markets of the
country will broaden. The Spectator who
has been temporarily lured into the bucket
shops by promises of low commissions and
quick action will place his orders on the
legitimate exchanges, thereby performing the
real functions OF the Spectator, so necessary
in the surplus producing country of creating
a market for that surplus.
With the wiping out Of the bucket shop one
Of the causes of depression in values of agri-
cultural products will have disappeared; it's
partial extinction at the present writing ac-
counts for the increased activity on all iegiti-
mate exchanges in the country
When the farmers and planters of America
realize what the curse of bucket shops has
cost them they will make their influence felt
in legislation and enforcement Of law against
them. q,