Evening times-Republican., 1920-12-20
PRESIDENT GAN
NOT BARGRA|N
FROM CANADA
Federal Trade Commission
Says Wilson Has No
Power.
MIGHT PREVENT
FUTURES TRADING
Commission Doubts Benefit Would
Accrue to Growers Should Imports
Be stopped-Tradins in Futures OF
Some Benefit, Mere Gambling
Should Be Prevented-Decline Due
to World Causes.
BY Associated Press.

dent is without power under exlStlns
law to shut out wheat imports" but
he apparently has certain powers
under the Lever act to stop future
trading in wheat" the federal trade
commission says in special report
to President Wilson, made public to-
day at the White House.
The commission says that, while
evidence is not available that future
trading is responsible for declines IN
wheat futures, it does not appear
that future trading in wheat as at
present operating is Of indisputable
service to the grain trade
1t suggests, however, that II regu-
latory action is to be employed the
question be considered by congress
and that legislation mot connected
with war powers be enacted
Couldn't Get Facts.
The commission told the president
that because of the failure Of the
Chicago board Of trade to cooperate
it was unable to obtain necessary in
Formations as to whether there had
been large transactions in wheat fu-
tures Of manipulative character.
AS to the concentrated purchases
of wheat in this country by foreign
governments which have undertaken
stc regulate at home flour prices ir-
respective Of the price Of wheat the
commission, declares that II these
purchases are to continue the de-
STABILITY of the United States meet
3 Ing them thru a selling organization
should be carefully considered.
Decline Due to World Causes.
The commissioners report is based
upon an investigation Of the wheat
situation which the president re-
Quested it to make last October after
Governor Henry j. AHAn, of Kansas,
and others had urged him to bar
Canadian wheat importations and
take such action as necessary to
stabalize the rapidly declining wheat
market
Declaring the decline of wheat
prices would appear to be in part
due to countrywide and worldwide
conditions, the commission assigns
seven specific causes: The outlook
for an increased world supply; con-
centrated buying by foreign govern
ments last spring and slack pur-
chases later; unprecedented" I'M
ortations from Canada, following
ian unprecedented yield and a dis
count in rate of exchange" the
record breaking yield of corn in this
country; the slackening Of demand
4 for -four; the general tendency to
decline in many commodities, and
the change in credit conditions with
resulting dispy. ition Of distributors
to refrain from accommodating usual
stocks.
Bar Would Not Help.
Discussing the barring of Can
adian wheat, the commission says it
is questionable whether such pro-
ceedinc would have the effect it's ad-
voca.cS expect because the United
States and Canada both have sur
plusses to exp~tt and will meet each
other in competition either here OF
in Europe.
While the commission devotes con.
siderable space To a discussion o..
trading in wheat futures, it asserts
that 1t Is lot now expressing ar
opinion on this subject, as it would
give 1t Extended treatment" in s
forthcoming report.
Future contracts may have a le..
gitimate use for hedging the state.
ment says. In this connection it iis
claimed that future trading performs
an insurance function where ordinar,,
insurance methods would not be
practicable, and that undue restric
ton of future trading such as would
deprive the grain trade of this SER
vice might result in grain dealers re
quiring larger margins and conse
quently resulting in either lower
prices to the farmer or higher price
to the consumer.
Too Much Gambling.
Without now expressing an opir.-
ion on this subject, it appears that
there is q large volume of future
trading that is mere gambling ard
involves a great ECONOMIC waste. The
remedy for this lies in congressional
action to prevent trading which is
essentially gambling.
"A limitation of the volume of open
speculative trades In wheat simil,.,
to the limitations placed on corr
speculation during the period ol
/, government control, would probably,
tend to reduce the possibility ol
manipulative trading"
May CHANGE Davis Gun RuIea-