The Minneapolis journal., 1903-03-25
CITY NEWS.
LIGHT ON FUTURES
The Chamber of Commerce President
Shows Meaning Of nti-Future
Trading Bill
Grain Men Think the House Commit.
tees Bill Shows Evidence
of Insincerity.

The Minnesota house of Representatives
in its action substituting for the Gjertsen
anti bucket shop bill an ''anti-clam AMBER
of-commerce'' bill. has. in the opinion of
the leading grain men. played false to
the great grain trade interests of the
state. The substitute bill of the house
committee is taken here as an evidence
of the insincerity of the body.
Senator Henry ]. Giertsens bill was
aimed at the bucket shops. The bucket
shops fought the bill from the first. The
bill was not in any way a Minneapolis
Chamber of Commerce bill, but the cham
Der favored it. The directors did not
know that the bill was to be introduced
until Senator Gjertsen made the. an
nouncement. Having seen the effect of
bucket shops, having studied the mat
ter carefully here and elsewhere Senator
Gjertsen introduced his bill as piece of
legislation necessary in his judgment. The
bill passed the senate
Bucket Shop influence.
In the house the bucket shop influence
was exerted to the utmost. The result
was the killing of the bill by the house
committee and the offering of asubsti-
tute bill.
This substitute bill is not likely to
pass, and If passed could net in any like
lihood be enforced. No one in the grain
trade here gives the committee credit for
sincerity in the matter. The members of
at the action of some of the Minneapolis
members Of the house.
The substitute bill would do away with
ali trading in grain futures. 1t is believed
to have been offered merely to confuse
matters and bring the session to a close
WITHOUT the passage of any bill that could
hurt the bucket shops.
President Mashal's Views.
James Marshall, president of the Min
neapols Chamber of Commerce, gave his
views as follows:
This substitute anti-chamber of COM
nerce bill does not carry the stamp of
sincerity. It's effect, if passed and en-
forced, would be to paralyze the grain
trade of the northwest The idea that it
was Spectators who originated the pres
ent system of trading in futures is erro-
neous. The future ira dirg was origina ted
by buyers Of cash grain as a. means of
protection for themselves and for the
farmers. Consider for a. moment what
the conditions were forty years ago. I
was then buying wheat along the river
at points that were important in the grain
trade. This was before the rise of Min
neapolis. A would buy wheat from
q, farmer. pay him in cash. then send the
wheat down the river and into Chicago.
A buyer figured the freight between the
buying point and Chicago and the selling
price of wheat in Chicago and knew What
he could afford to pay for the wheat.
But what could a man do when the
river froze up? He certainly could not
continue to buy from the farmers and
pile the wheat up until spring opened,
for how could be tell but wheat might
be 10 or 20 cents lower III the spring ?
The buyer had to take off enough from
the price to protect himself and the
farmer suffered. I remember that one
year when navigation closed, the grain
buyers not knowing what the price would
down 45c between river points and Chi
Cago.
Then came the plan of buying the
wheat from the farmer and at the same
time selling it in Chicago for May deliv-
cry, and in the spring sending it in tt
make good the delivery, and this arose one
Of the greatest economic systems that
exists in the world to-day. oFreign coun'
tries were quick to see it's advantages anC
to day we find the same system in vogue
In the grain trade al lover the world a1ft
this is the system which the legislature O.
Minnesota propose to knock out.
Germany's Experience.
"a few years ago a German legislator
put through bill making it unlawful tc
sell grain for future delivery and in 6
short time the grain business of German
was paralyzed and the bill was promptly
repealed.
y The passage of this bill would upset
everything and tear down the system tl1a
brings the producer closer to the con
There is an element of speculation ii
( wheat. This we cannot eliminate. There
are people who will speculate in theil
business, in lands, in real estate in Other
ways. When they come into wheat they
at least serve the good purpose Of help.
ing prices. There times when a new
crop moves faster than the railroads car
handle it, faster than eleva tors can buy
1T, than millers can grind it, than ex
porters will buy it. The speculative ele.
ment helps in some degree in sustaining
prices at times when if there were ne
speculation and no system of selling fo1
future delivery, and no one bought whea
B except for immediate requirements. prices
would decline very heavily under pressure
of the farmers offerings of wheat.''
FIRST local pERFORMANcE