Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-10


crept In. often much to the disadvantage
Of farmers and consumers. From q moral
point of view the effort to check gambling
and illegitimate dealings on the exchange
is considered very laudable. but there Is
doubt as to how 1t will work In reality.
In the future, when the farmer, after the
harvest. shall offer his crops to the dealer
the latter must be very cautious In nam
ing a price. because he has no facilities of
covering himself by term sales: The new
law does not prohibit a deaier from buy
ing grain for future delivery from
farmer or another dealer. II the bargains
are contaminated privately at the farm
or the Offices OF the dealers, but will not
allow the terms OF such bargains to be
publicly recorded. Thus dealers really
have no scale OF prices except for spot"
grain. which fact prevents them from
buying freely. and therefore necessarily
exercises a depressing influence upon
prices especially Immediately after the
harvest, when the pressure and necessity
to sell are the greatest
The new law IS terrible blow to the
produce exchanges. and nobody can fore
tell what will hereafter become Of them.
The dealers are alarmed. because It
threatens the very existence Of those
time honored associations. and. what Is
worse for them. may wipe out Germans
influence and importance In the fnterna-
tfonal markets and induce German capital
to remove to foreign countries. Although
the agrarians expect many advantages.
especially a rise in the price Of grain.
from this law. they have so far been dis
appointed. because sine. the law was
passed prices have moved in the other
direction. no doubt greatly influenced by
the damaging influences espected by its
operation.
The export Of grain from the United
States to Germany will also suffer- be-
cause the German dealer cannot now buy
great quantities at time. for the reason
that he cannot cover himself IN advance
by term sales.
The "Gamblins" Register.
Another interesting feature Of the law
Is the establishment OF an exchange reg
lister. or gambling register, as 1t is COM
monty called. Speculation in grain and
mill products on exchange Is forbidden
by the law, as 1 have mentioned before,
but speculation in other farm products
and stocks and bonds Is allowed provided
the parties to the transaction enter their
names in the exchange register. As the
latter Is a public record, secret gambling
by private individuals Is thereby done
away with, because a private citizen can
not afford to have his name publicly ex-
posed in the gambling register. and a
dealer cannot venture to do bJs1n IS
with party against whom he could not
press a claim. Even a deposit will not
protect him. becaus, he cannot touch 1t,
having no legal claim against the specu-
lator. This feature of thu law IL re-
garded as wholesome restraint. because
it will prevent private individuals from
specializing in shares of which they know
neutrality-suspicious. which have seldom
brought profit. but often ruin and shame
to many worthy man and his family.
Brokers naturally dislike this very
much. because 1t robs them OF the oppor-
tunity to shear the lambs. They claim
that. without outside speculation. it will
be difficult to dispose Of such enormous
crops as for instance. the sugar crop,
and that prohibiting private speculation
cannot but have depressing effect upon
prices On the otter hand. the moral ad-
vantage Of keeping inexperienced out
siders away from the demoralizing inf1u-
ences of gambling On margins Is consid-
cred worth trying. and If this feature
Of the law succeeds 1t will indeed be a
blessing, The gambling passion Is as
strong in Germany as in the United
States. and human ingenuity will proba-
bly, find a way to get around this stipu-
lation of the law. Critics Of the law pre-
dict that German lambs will do their
specializing In London. Paris or Vienna
hereafter carrying not alone the COM
missions. but also their wool to foreign
countries instead OF letting their German
countrymen do the clipping. as hereto
fore.
The establishment Of the exchange
register will necessarily diminish trans
actions on all German exchanges. thus
curtailing their Importance and influence
on the worlds markets in general 1t
will no doubt also tend to drive con-
siderable money and business to foreign
countries.
The general opinion in Berlin Is that
the law, in it's present form. will not
stand, but must be modified in many
ways because it's effects will be detri-
mental to commerce in general rather
than corrective of the evils which 1t is
intended to remedy.
Great Circumspection Required.
The bourss law requires great circum-
spection in the listing of securities and
lays still greater emphasis upon securing
honest quotations. The bourse commit
tee discharges this function through the
assistance Of picked brokers. who are
chosen with the sanction of the state gov
eminent and are sworn to the honest
discharge Of their duties.
At several points the new bourse law
contains provisions which will have
far-reachng effect upon speculation. It
forbids dealings in Industrial stocks for
future delivery: and. in the case Of Sc
curties, all trades with the names Of the
buyer and seller must be entered upon
the so-called 'bourse register" otherwise
debts arising from such transactions can
not be collected through process of law.
This has provoked confusion and distrust
among brokers. for. by pleading the
baby act" loser may escape from pay
ing. The banks of Berlin refuse to deal
with firms not registered. and this has
diminished the volume OF business done.
Another hostile act of legislation is a
heavy increase Of the stamp taxes upon
listing and sales. The latter are 30 high
that speculation in International securi-
ties has entirely disappeared from Berlin