Devils Lake inter-ocean and Devils Lake free press. (Devils Lake, Ramsey County, N.D.) 1905-1909, 1907-05-24

are IN the mHTk0L. IL Is u uldlISl "a
convenience as we'll as expedition for
either buyers or sellers to be members
of either of these exchanges. Each
exchange provides g definite rate Of
commission to be charged, which is
! cent on wheat and barley and one
half cent on oats, etc., and also pro-
vides that members can do business
for other members at one-half the reg
ular rate. bat it is also apparent that
unless transactions are very large the
interest on an investment Of mem
bership being considered aPd the vari-
GUS costs and expense attendant upon
the conducting of the Business Is con-
sidered, that there is very slight diff,
ference as to the costs between being
q member or non-member. 1t also
appears that by virtue of the high
standard of business integrity main
tanned by these exchanges, that the
farmer and country shipper can, to
very great degree Of safety, rely upon
the honesty of such commission mer-
chant, with whom he does business.
1T also appears to your committee
from the evidence that the movement
of the grain crop CT the Northwest re-
Quires very large sums Of money and
1t also appears that the commission
merchants Of these exchanges not only
act as grain receivers, that Is, as the
trusted agents Of shippers in receiving
their grain and selling the same, but
thst they also to a very large degree
advance the money to these shippers
In advance of shipments. 1t appear
ing that at certain times Of the year
an amount Of money as great as $10,-
100000 or $12,O00,000 is loaned by
these commission merchants of the
two exchanges to the grain dealers at
country points throughout the North
west and at a reasonable rate Of in
terest. 1t being impossible for these
country grain dealers to get the neces-
sary financial assistance from their
own country banks because of the fact
that no country bank, and in fact no
bank, can loan to any one concern
only a certain fraction of its capital.
The commission merchants are there
fore to large degree sustaining grain
dealers at country points in a finan.
cial way and 1t is apparent that the
commission merchants, who are like.
wise borrowers of large sums of money
themselves, are enabled to get this
money which they loan in this way
from the banks Of the larger cities
because of the fact that they are mem.
bers Of these exchanges and that these
exchanges themselves act as strong
forces in building up proper business
methods and principles and thus in
very large degree aid their members
In their standing with the lending
world. The testimony of the bankers
offered before this committee clearly
shows this phase of the work Of these
exchanges. It also shows that It en-
ables dealers OF grain to so hedge
their deals that at no time are they
specializing ON the market or affected
by the t1uctuation of the markets and
they are thus enabled to show to the
large bankers that they are at all
times secure and at no time are they
running risk Of being bankrupted on
account of the sudden change in value
ut aprears that the chamber of
commerce of Minneapolis expends be-
tween $4,000 and $4,000 every year