The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-06-01
PROF. BOYLE NOT
WELL POSTED
THIS Is STATEMENT or WlNNI-
PEG FREE PRESS REGARDING
THE VOLUNTARY TESTIMONY
RECENTLY GIVEN BEFORE THE
SENATE FINANCE COMMITTEE.

Winnipeg Free Press: Prof. James
e. Boyle Of the University OF North
Dakota has been giving evidence before
the senate finance committee of the
United States, at Washington, on the
subject of reciprocity and the price
of wheat in Winnipeg. Minneapolis
and Duluth If all the evidence fur
nished by the professor is as accurate
as that about the Winnipeg Grain ex-
change, 1t will be we'll for the senate
committee to have it revised before
use. The following is his statement
on this point:
There was good reason for the de-
preston of prices at Winnipeg entirely
apart from the question Of the tariff.
This reason was the passage Of hostile
legislation by the Manitoba legisla-
ture. This legislation was directed
against trading in futures, and it had
the effect of Disturbing entirely the
Winnipeg produce and grain exchange.
1t was forced out Of business, and a
voluntary organization known as the
Winnipeg grain exchange took its
Pl1GCs III 4uluTGS Was SINGIl
up. Government elevators were also
built in competition with the private
ones.
The result Of these changes was
that Winnipeg grain dealers could no
longer pay the prices they had hith-
erto paid. Elevators which had been
accustomed to hedge by selling in flu
lures against what they bought for
cash, had to give up this form of in
surance against loss. They had to
carry the risk themselves now where
as formerly they had been able to pro-
tect themselves against 1t. Naturally
that risk had to be paid for. 1t was
paid for in lower prices for wheat. The
Manitoba farmer is therefore paying
insurance against loss to the agencies
that gather and ship his wheat-an
insurance that was before taken care
of by the device OF trading in futures"
This will be news indeed to the
members of the Winnipeg Grain ex-
change. The hostile legislation re-
ferred to by Professor Boyle was
passed during the winter session of
the Manitoba legislature of 1908. It
modified certain bylaws of the Win
nipeg Grain and Produce exchange
but no attempt was made to prohibit
trading In futures. The old exchange
disappeared because that was the
easiest way out Of the situation which
was created by the passage of the
legislation and the new voluntary as
ISOLATION was formed. the change in
the name being made by dropping the
word produce This new exchange
came into active being with the open
ing of the new building on the first Of
September. 1908, and the trading in
futures goes on increasing year by
year, until today 1t is rather more
than three times as great as 1t was in
1908. Indeed the grain option market
in Winnipeg liz now the third largest
on the continent Of America. as it is
the largest cash wheat market on the
continent Of America. 1t fluctuations
are momentarily posted both in Chi
continent of America. It's fluctuations
tons of those exchanges are posted in
Winnipeg. Sales are hedged as they
always have been. and elevators do
not carry one dollar more risk now
than they did in the days before the
passage of the hostile legislation
AS to the effect Of government ele-
vators they are supposed to enhance
not depreciate the price of wheat At
least that is the claim made for them
by their most ardent supporters. and
In any case they have only existed.
partially in one province. for one sea-
son, so they could hardly have affect
ed prices in 1908 before they came in
to existence.