Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1920-12-04
GRAIN SPECULATION
BLAMED FOR LOSSES
FORCED ON FARMERS
Washington, Dec. 4.Senator Capper of Kan
sas today made public his proposed bill to stop
gambling in foodstuHs and cotton.

"A tax or ten per cent,
designed to be prohibitive
on FUTURE trading in
grain and cotton, except by actual
owners or a limited class OF traders
under federal license, is the basic
feature Of the Capper bill which is
to be introduced in the senate next
week by the author and in the house
by Rep, Tincher, republican, OF
Kansas. The ten per cent tax would
apply to options and the measure
would affect grain products as we'll
as raw grain.
The lbpl will stop gambling in
wheat. corn. cotton and other farm
products" said Sen. Capper. 1t will
eliminate the wheat pit and the black
board. 1t will put out Of business
the thousands OF wire houses and
bucket shops by making it impossible
for gamblers and spectators to deal
on boards Of trade,
THE bill undertakes to preserve
the legitimate hedge but cuts out
all gambling and manipulatons"
Farmers, dealers and manufactur-
ers buying or selling grain or cotton
for actual delivery would not be re-
stricted by the proposed law, Sen.
Capper said
Provides Prison oentence.
Penalties of fifty per cent OF the
proposed federal tax, fine Of $4,000
and one years imprisonment for yio-
lation of the bills provisions are in
corporated in the bill.
Sellers of grain, grain products and
cotton who at the time Of sale would
be owners OF the actual physical
property" and traders regularly en-
gagged in growing, dealing in or man
ufacturing and registered with the
internal revenue bureau would be
exempt from the ten per cent tax.
Such traders, however. would be lin
tied in their dealings to three times
their actual transactions during the
preceding year and would he reQuir-
ed TO report all dealings to the in
ternal bureau.
Deal With Paper Only
In a statement outlining his bill,
Sen. Capper declared that only one
per cent of future trading in grain
and cotton was honatide. Millions OF
dollars are lost by farmers. as we'll
as spectators, in the recent bear
raid of the grain markets Sen. Cap
per declared, asserting that consum-
ers as well as producers were the
victims,
The Chicago board of trade as
now conducted.' said Sen. Capper,
is the worlds greatest gambling in
stitution More wheat was sold in
Chicago is the month of October than
was raised in the entire United States
this year. This years corn crop was
sold fourteen times in Chicago before
a bushe of corn had reached the
markets. Only about one per cent
of the trading done in futures is
bonafide,
There is not the slightest doubt
that the gigantic raid made by the
bears on the board OF trade was the
chief cause of the recent disastrous
slump in the price of farm products.
Because lot Of market gamblers
find it convenient to bet on the daily
quotations the farmer who has been
forced to sell his hogs and cattle
at a loss while meat still sells at war
prices. is again made the goat. The
farmer already has lost more than a
million dollars by the bear raid.
Brokers and commission houses have
cleaned up over forty millions III
margins and commissions alone. The
lambs who play the market have lost
more than 100000, ,000 in the last
ninety days i'll speculating in cotton
and wheat.
II find all grain and cotton dealers
as we'll as millers and spinuers rec
ogniZe the evils Of the present sys-
tenn and are anxious to stop gambling
in food products. They will heartily
support this measure TO place the
business on legitimate basis. |
am also assured Of the support Ot
the farm organizations. The com.
mission houses, brokers', bucket shop
and market spectators general will
fight it,