The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-12-20
f-sa7+
FOR
llTRA||D|'E'S
MIXTURES
l,sidsnt Wilson Asked
" sderal Commission
g Use Lever Law.

70
Rashington, Dec. 20.-(Associa:-
NJ Press - The president ID with
q power under existing law TO
/ m ont wheat Imports but he
sa,pertntly has certain powers
unes the Lever Act to stop future
tSading in wheat" the federal trade
eGnmission says in q special re-
nj 70 President Wilson, made
public today at the White House.
The commission says that while
Njdence is not available that
htures trading is responsible for
~ decline in wheat prices, it does
n appear that future trading in
uAeat, as at present operating. ia
4 lndisputable service to tbs grain
trade 1t suggests, however. that
4 The regulatory action. is to be
@ployed the question be consid-
sfsd by Congress and that legisla-
lion mot connected with war
powsfs be enacted"
Tho commission tells the presi-
6ent that because Of the failure Of
u Chicago board Of trade to cG-
sDerate 1t was unable to obtain
ssc,ssary information as to wheth-
= there had been large transac-
tlcos In wheat futures Of a mant-
Dglative character.
n 70 the concentrated purchase
q wheat In this country by foreign
gcvauments which have undertak-
q 70 regulate at home -four prices
irsspective of the price of wheat,
n commission declares that II
tless purchases are to continue,
~ desirab.lity of the United
Eates meeting them through q se..-
" organization should be careful
b considered"
me commissions report Is baa-
on an investigation of the
Aeat situation which the president
leuested 1t to make last Octobsr,
ief Governor Henry j.. Allen OF
kAnsn and others had urged him
y Mr Canadian wheat importa-
tn and take such action as neces-
~ to stabilize the rapidly de-
ching wheat market.
SevsA Causes.
Declaring "the decline Of wheat
Dsics would appear to be in part
idee To countrywide and world
wids conditions" the commission
fsagns seven specific causes:
The outlook for an increased
world supply;
Concentrated buying by foreign
scvernments last spring and slack
purchases later;
Unprecedented" importations
from Canada, following IAN unpre-
tedented yield, and a discount in
rate Of exchange;
The record breaking yield Of
corn In this country;
The slackening Of demand for
-four;
The general tendency to decline
IN many commodities;
The change in credit conditions
With resulting disposition Of dis
!rieutors to refrain from accuml-
nt.ng usual stocks"
discussing the barring Of
VaAadian wheat the commission
sap:
1t ts questionable whether such
: proceeding would have the effect
y advocates expect, because the
vaited States and Canada both
nave surpluses to export and will
meet each other in competition
eHnef here or in Europe"
while the commission devotes
considerable space to a discussion
" Trading In wheat futures, it as
ser's that It is not now expressing
~ opinion on this subject, as t
would give it IAN extended treat
nent In q forthcoming report.
future contracts have a legiti-
@ste use for hedging" the conf
Mnsion says. IN this connection
y Is claimed that future trading
psf'orms an insurance function
suete ordinary insurance methods
"Oslo not be practicable, and that
sauue restriction of future trading
sa as would deprive the grain
Saoe OF this service, might result
= fain dealers requiring larger
Isfslns and consequently result.
"'aef IN lower prices to the farm
- Of higher prices to the con-
Without now expressing an
.I p.aon on this subject, it appears
. .a1 there is q large volume Of fu-
.le trading that is mere gambling.
..a involves . great economic
ce The remedy for this lies in
so1sresstonal action to prevent
ling. % eS'e"''a''' 8
"A limitation Of the volume Of
s, psn speculative trades in wheat,
.s u'laf to the limitations placed on
- ~ speculation during the period
y government control. probably
= vaio tend to reduce the possibility
: @anipulative trading" e
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