Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-12-24
TO BAR
DEALS IN FUTURES
BILL OF CONGRESSMAN Dick,N-
SON AIMS AT EVILS OF. PRES
EMIT TRADING SYSTEM.
PRODUCER MUST CARRY
GREATER, SHARE OF BURDENS
Frssent System Con,pels Him to
Provide Insurance for Miliers and
Grain Speculators-cost of Product
Does Not Enter Into Price Fixed
Under Present System.
TBy p. G. Douehertyl

Washington, Dec. 2f.--When the
house agricultural committee be-
sins hearings on the oil! controlling
future sales of grain, meat and
any exchange or board of trade, in
tt7o1uced in the house ry Represen-
tative Dickinson, of the Tenth Iowa
district, mass OF evidence sup
porting the proposed legislation Will
be furnished. The hearings will be-
sin Jan. before the agricultural
committee, which, by the way, Is
headed by another Iowa representa-
tive Congressman Hausen, as chair
man.
Representative Dickinson and Rep
res entatives Evans, of Nebraska,
haze, an extensive study of the evil
of trading in futures and they in
tend to present convincing evidence
to the house committee in support OF
the Dickinson bill.
".[t is contended by those who sup
port the present marketing system
and dealings in futures" Mr., Dickin-
son told me today. that this system
is necessary In order to provide In
Surnnce to the dealers and consum-
ers Of grain. If this be true, 1t COM
pels, the grower or producer to furn-
ish insurance for the miller and for
the spectators from the time the
wheat is purchased until 1t is con-
verified into flour or other finished
products.
TT is admitted by the advocates
OF the present marketing system that
cost of the product does not enter
into the price liked under the pres
ent system. 1t is also cortended that
the price of ninety five per cent Of
our products used in home consump-
ton Is fixed by the five per Cent
thereof exported into foreign conn-
tries. Nothing could show the de-
fectss in the present system more
than these assertions made In sup
port thereof.
THE present marketing system
tends to centralize all Of the markets
in two or three congested centers and
this Is due largely to the fact that
future trading is admitted on the
exchange. II the markets Of the
country were compelled to deal in
spot cash commodities or short time
deliveries. the markets would distri-
butte themselves over the country
where the commodity Is consumed,
The distribution of our markets
is desirable In order to get a re-
duced haul and less freight rates.
Under the present railroad tariffs
all OF the cost of hauling is paid by
the producer and by reason of the
high rates now In vogue, it is neces-
sary to make the haul short, If pos
sible.
Producer Fails to Benefit.
In order that producers in agri-
cultural products may continue. we
must either have q change in the
present marketing system, wherein
cost OF production is taken into ac-
count, wherein futures are barred in
order to distribute markets more
generally over the country and the
cost Of delivery reduced, or the pro
Queer will be compelled, in order to
insure himself fair market for his
produce, to buy on the board or ex-
change for future delivery such
NiiioNi'" VI SidiH DIS ne expects to
produce and base the cost Of his pro-
duction on this future market price.
II would certainly be safer to reform
the present marketing system rather
than TIC advise all the producers to
enter the speculative field and deal
upon The board Of trade for protec.
ton.
"A further reason for revising the
present marketing SYSTEM is the fact
That with the present system of >f,,-
lures, any commodity manufactured
from agricultural products by rea-
son OF the future price fixed on such
raw products does not respond in
price to the consumer until six to
ten months after the price has been
reduced to the producer, making the
consumer and the producer carry
the spe oulative risk on this produce
for period of six to ten months
after reduction has been made to
the original producer"
Sons Claim Body of c. w. Railt.
Mason City, Dec 24.-Oliyer Raflt.
n t.