Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-05-16
take ACTION TO PREVENT
SPECULATION IN GRAIN
Exchanges Fix Maximum Price for
Wheat Futures and Prohibit
Further Buying.
EMBARGO MAY BE EXTENDED
Hope to Prevent ANY Steps by Fed.
cral Government to Regulate
Trade-Hysteria Held Largely Re.
spOnsible for Present Conditions.
fBy Associated Prss,.1

By Associated Pres,l
CHICAGO. May i5.-Action which, il
is said. will remove the element OF
speculation from tho grain market. and
which II Is believed will forcstall any
steps by the Federal government, was
taken here to-day at meeting Of
representatives OF the primary grain
exchanges OF the country.
1t was accomplished by fixing a maxi
mum price for wheat futures at or
under which sales may be made, but
no buying will be permitted except TO
closc-out accounts. No trading 10
May options Of wheat. corn or oats is
permitted except to close deals
The same principle was extended TO
July and September oats. and corn in
principle. but action was not taken. Is
1t was held Unnecessary at this time.
The delegates simply agreed to extend
tho embargo il necessity arises. Grain
prices were lower to-day
MILLING INTERESTS
WE'LL REPRESENTED
Milling interests were represented at
the meeting, and the grain exchanges
Of Chicago. New York. Toledo, Winni-
peg. Mnnca polls, Kansas city, Omaha
and ST. Louis. The following state
ment OF the proceeding was issued:
ut Is the consensus OF opinion Of
the representatives, OF the various
boards OF trade and chambers OF COM
mercc assembled that the unusually
high prices are due:
Ito the subnormai production of
grain and foodstuns generally tn.
world over during the preceding year,
and the very unfayorable outlook for
the growing crops. al forecast by our
Agricultural Department.
ITO the breakdown in the system
OF distribution because OF the in.
ability OF railroad companies to render
normal or efficient service, the rcIa-
ton OF supply to demand being so close
that extremely good facilities should
nave been available. when. in fact. the
railroads never in their history rem
dered a service 80 low in efficiency.
with over half the world at war,
the demands from all importing coun-
tries are abnormal!y high. This, in
tensifed by our own industrial ac-
tivity. naturally has increased the de-
mand for foodstuns.
ACTIONS HIsISTERpRETED ny
FOREIGN GOVERNMENTS
Ito the very comm endable efforts
OF the officials at Washington 10 stimu-
late production, which have been mis-
Interpreted not only by our own pco-
pic. but by foreign governments, az
meaning that We were in a condition
bordering on famine. Natural condi-
lions admitted OF high prices. but the
hysteria is absolutely Responsible for
inc inflated values now prevailing.
tons have temporarily disarranged our
grain markets. II Is the unanimous
opinion that the System of handling
grain in the usuai course through
boards Of trade and chambers OF com
Incrce is the most economical method
Of handling the business, and, while
speculation has been more or less
prevalent. il has little to DO with
present conditions. 1t must be re-
membered that the,e great market
places arc the Development OF thou
sands OF years OF experience, and are
the only known means OF distributing
farm products of this country. and until
a better substitute has been devised,
their operations should not be inter
fercd with
The action OF the directors of tn,
Chicago Hoard of Trade and the other
exchanges in fixing tho maximum price
or wheat and the restrictions limiting
the buying 10 the closing UP of exist,
inG contracts. has been unanimously
approved by tho delegates and repre-
sentative miliers assembled. and ar-
ton has been taken continuing these
maximum prices and restrictions until
further notice,
Exchanges are also prepared to take
similar action with regard to corn and
oats, should necessity arise"