The Birmingham age-herald., 1917-05-16
ACTION TAKEN ID STOP SPECULATION
 INGRAM EXCHANGE
Maximum Price of Futures Are Fixed and Buying Will Be Limited to
 Closing Trades

Chicago, May 15.-Action which it is be- lation from the grain market and forestali any steps by the federal government, was taken here today at meeting of repre- sentatives of the primary grain exchanges of the country. It was accomplished by fix ing a maximum price for wheat futures at or under which sales may be made, but no buying will be permitted except to close cut accounts. No trading in May options cept to close deals
 The same principle was extended to July and September oats and corn in principle, but action was not taken, as it was held unnecessary at this time. Grain prices were lower tonight.
 Milling interests were represented at the making together with the grain exchanges of Chicago, New York, Toledo, Winnipeg, Minneapolis, Kansas City, Omaha and St. Louis The following statement was is- sued:
 Tt is the consensus of opinion of the representatives of the various boards of trade and chambers of commerce assem- bled that the unusually nlgn prfces are due:
 CAUSE OF HIGH PRICES
 '1 To to the subnormal production of grain and foodstuffs generally the world over during the preceding year, and the very unfavorable outlook for the growing crops as forecast by our agricultural de- partment.
 "2. To the breakdown of the system of distribution by the inability of railroad companies to render normal or efficient service; the relation of supply to demand being so close that extreme good facilities should have been available when in fact the railroads never in their history rem dered a service so low in efficiency
 "s With over half the world at war the demands from all importing countries are abnormally high. Thls intensified by our own industrial activity, naturally has increased the demand for foodstuffs. A. To the very commendable efforts O; the officials at Washington to stimu- late production which have been msn- terpreted not only by our own people, but by foreign governments as meaning that we were in condition bordering on famine. Natural conditions admitted of high prices, but the hysteria is abso- lutely responsible for the inflated values now prevailing.
 THINK EXCHANGES NECESSARY sWhiie these extraordinary conditions have temporarily disarranged our grain markets, it is the unanimous opinion that the system of handling grain in the usual course through boards of trade and cham bers of commerce is the most economical way of handling business, and while specu- lauon has been more or less prevalent it has little to do with present conditions It must he remembered that these great market places are the development ot thousands of years of experience and are tthe only known means of distributing farm products of this country, and until a better substitute has been devised their operations should not be interfered with.
 The action of the directors of the Chi 1 ca go Board of Trade and the other ex- 1 changes in fixing the maximum price of wheat and the restrictions limiting the 1 buying to the closing up of existing con- ! tracts has been unanimously proved by the delegates and representative millers l a ssembled anl action has been taken con l tinuing these maximum prices and re- strictions until further notice. .Exchanges are also prepared to take similar action with regard to corn and oats should necessity arise.