Saturday news. (Watertown, S.D.) 19??-19??, 1919-04-03
FUTURE TRAD'G
AN ESSENTIAL
DEALERS TOLD
President of Chicago Board of
Trade in Speech at Sioux City
Enters Plea for Exchanges.
Criticism Comes Through Ig-
norance Of Business, He De-
clares.

CidTcS.
Sioux City, April 2,-Asserting that
grain exchanges i'm their functioning
We're always ready to adopt anything
that promises to improve the general
grab. situation, and claiming shat
trading in futures was essential in the
commercial distribution of grain, l.. f.
Gates, president of the Chicago board
of trade. in an address hat featured
the banquet rendered more man 800
members of the Western Grain Deal
ers' association, declared that prices
We're determined by the consensus of
opinion of market conditions the world
over.
Future trading was the work of
many men in many years, said Presi.
dent Gates in describing is attitude
toward this question, who said that
profits the dealers had made in the
past might be more then wiped u
in the reimbursement to normal. Ad-
rerse criticism of the exchange bust
ness was generally due to ignorance,
stated the speaker.
Return to Normal VIII he Slow
Control of food products during the
war emergency by the government
had so complicated the situation that
return to normal trading might not
be possible for a year or two, predict
ed Mr.. Gates in his address.
Eve are in for criticism because
w ARE members of an organized mar
ketr'' said Mr.. Gates after sketching
the origin of the grain trade and ex-
changes. THE short seller needs to
be considered. Short selling is not a
new thing, as it Is found in every line
of business. They all sell for future
business. In thirty years the average
annual %fiuctuation on the Chicago
board of trade has been 81 cents. Sub,
tracing the action Of corners the
average is 80 cents.
Our terminal markets are here to
determine what a fair price for grain
shall be. The Independent grain deal,
era is in Just as good n position to get
market information as any commits
sion firm or trader. The great trou-
BILE insthe northwest in the grain
trade has been due to it's handling by
line elevator concerns that have a
more or less selfish monopoly of news.
Opposition to exchanges III the north
west is largely due to a lack of infor
nation.
Future trading is Needed
AT present Chicago maintains Its
position III the future market while !
handling q smaller proportion of grain
from year 10 year. The volume of flu
ture trading Is large in proportion to
cash grain. The time when his trad
ing is needed by the trade is not yet
passed.
1--WE cannot change the economic
trend OF the markets, which is ir.esisss=ii
able. IN the next twenty-five years |
the market will nave as definite a
trend as the gulf stream. We need
The future a1k for our protection.
The world Is nearly broke financially.
Wheat has been destroyed everywhere
and all lands have suffered. The time
VIII corne within the next twenty years
when money will be worth more than
things.
I'm the change that IS coming the
dealer will be in need of the assurance
TINT has been lacking for several years
may expect the changes will be
blamed by the producer because the
exchanges Indicate the lowering price
When this criticism Games we should
ready to answer It. W. do not
miss the benefits Of exchanges until
they are not be be had. When we set
back y normal we will find the ex
changes efficient. 1 beg you dealers
tinwestern terrsse.ss e recall the serv
ice of the markets for the past fifty
YEATS atlu ask you TO be q little gens
arols Ia critic,n IN because Of the con
diticns imposed upon US and FOR which
AVE- were not r~esponsibles
GAA II