Arizona republican., 1908-03-21

Late in the year, when a large per cent of the wheat raised in this coun- try had left first hands, the trade
 turned its attention to the approaching
 Argentine crop. Well defined reports
 as early as october indicated a great
 harvest in that South American coun try. The eXportable surplus was esti
 mated all the way from 130 to 150 mill
 lion bushels compared with a little [ over 100 millions shipped shipped from Y the 1906-7 crop. Early in December reports confirmed large yields. Con- | ditions for the entire harvest period 1 of December and January were most , favorable and the grain raisers and ex- ] pOrters of Argentine were quick to of fer wheat in great quantities to Eu-
 rope European buyers who had been
 paying fancy prices for American
 wheat for months took the La Plata
 offerings eagerly. Not only did Flu
 rope make contracts for 4O,000,000 to
 $60 ,000, 900 bushels of Argentine wheat
 before a bushel of it was threshed. but every effort known to modern com merce was put forth to move the South American wheat to the importing een-.
 ters of Europe at the earliest possible
 date. After the shipping season was | fairly under way the wheat trade of
 the world saw the ports of Argentine clear about 20. OOO. .0O0O bushels of wheat
 in three weeks-surprising the grain
 trade of two continents by shipping
 over 7,500,000 in one week.
 Naturally the grain trade of this
 country saw the inevitable effect of
 the enormous outpouring of Argentine
 wheat in depressing prices sharply at all importing centers. Recognizing the | importance of this direct competition,
 prices were quickly forced lower in all hpme markets. From S1.0S 1-2 re- cord4d on May 1908. contracts in the | Chicago market early, in December, ! there was a decline to 91c by February | IS. In bringing about this decline based on the excess production and
 excessive offerings by a wheat raising
 competitor, Argentine, the regular
 trade, as embraced by the public eX- changes of the country, kept strictly in i line within its province of shaping prices for the best advantage of grain producers.
 The consumers were not the only ones to benfit. As a considerable DOT
 ton of the buyers in December and
 January represented European inter-
 ests the money they contracted to pay | in excess of what they would have to
 pay now. or at the time of delivery. represents a clear profit of millions of dollars of European money assured to ! the United States, at a time when
 such assurances were second in cash value only to cash as al means of allay~ | ing the panic.
 The real value of the present sys- tenn of marketing grain rests on broader basis however. then mere tenn
 porary profit in time of trouble. It "opens up for the daily benefit of the producer the combined buying demand l of the civilized world and gives his crop a cash value any day or month in i the year. This not always to the ad-
 vantage of the big milling interests. who would like to deprive the farmer of this perpetual market, and limit his dealings to selling for immediate delivery so that they could take ad- vantage of the necessity in most, cases
 of getting his crop off his hands soon after it has been harvested. The mil | lers. therefore, are strongly in favor | of certain laws now being considered
 in congress which have for their ob- i ject the abolition of time dealings in grain and other agricultural products. These proposed laws boldly under take tasks which have been found inn possible and have long been discarded | in other countries as chimerical. To prohibit, through legislative enactment, | the buying and selling of grain for fu-
 ture delivery on legitimate established produce exchanges might eliminate possible ills in the trade, but would i kill instead of cure the patient. It is apparent to those WhO are familiar
 with the subject, that the authors of ] this proposed legislation are iaboring
 under a grave misapprehension of the
 true facts and conditions governing the buying and selling of grain. They
 overlook the all important fact that
 the only competition the miliers now have is in the exchanges in the buying
 of grain for future delivery Therefore, the abolition of time dealings would
 eliminate this competition and in the end surely would reduce the number of buyers of cash cereals from the farm CT. and thereby materially put down the price of the grain he has to sell. In other words, the millers would be able to secure their raw material at a much flower figure and at t4e expense of the | farmer, because of lack of cOmpeti- ! tion.
 II The fundamental mistake made by most advocates of this well meaning Legislation is in confusing legitimate
 buying and selling for future delivery
 and mere betting in a bucketship. The first is a strict commercial transac- ton between buyer and seller. and is a necessary part of the trade mechanism,
 whereas the second is pure gambling. has only harmful results and has met
 with consistent opposition on the part
 of legitimate exchanges all over the
 country.
 A bucket shop" is q place wherein
 are posted. as they occur the fluctu-
 ating prices of grains, provisions and
 stocks in the great exchanges at the leading commercial Centcrs Under the
 guise of a contract to buy or sell one
 or the other of these commodities, the
 proprietor of the shop will wager any
 conner that the price will advance be-
 fore it declines, or will decline before
 if advances. to a certain named point.
 Neither party buys" anything. Ncith-
 CT party sells" anything. The deciS-
 ions of the wager hang upon quota
 tipn which is made by men engaged m