South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-10-03
GRAIN EXCHANGE
TRADING AGAIN
ON PEACE BASIS
Market Now Regulated by
Supply and De
mand.

CHICAGO. oct 3. - a death
kneH 20 the exploiters and producers
and consumers was sounded with
the resumption Of pre-war methods
OF functionlng by grain exchanges.
Establishing values simultaneously
in every part OF the nation with no
inequality because Of geographical
location is OF tremendous economic
value"
This IS the declaration Of Secre-
tary John r.. Mauff OF the Chicago
Board of Trade in a comprehensive
statement issued today reviewing the
general grain marketing situation.
Leading grain men characterized the
statement as announcement Of far
reaching Importance as showing.
after the harvest of "a bumper crop,
the values OF the grain exchanges In
marketing and distributing the
farmers wheat.
Through methods now obtaining
the producer is offered am infalible
fluctuating market determined and
regulated by the inexorable law OF
supply and demand" the statement
says.
without cost 20 the public. true
quotations created by a membership
representing all branches OF agri-
culture and industry. are distributed
broadcast thus providing the pro-
ducer definite Information of exact
values at al times. lie can dispose
OF his products al any time by max
ing a future delivery contract that
viii protect against loss through bad
roads or transportation problems.
There is provided a daily open
competitive market i'm which the
producer displays his wares before
scores OF buyers simultaneously.
This cash market obviates the OJner-
wise impossible task of communi-
eating with this diversity Of demands
by personal effort.
sharp competition among the
buyers and sellers VINO are govern
ed by rigid rules insures proper
handling IF the commodity. In adj
dition TO providing these great mar
kcung facilities thousands Of dollars
are being expended annually by the
board of trade I'm the disse mination
or statistics relating TO agriculture,
in encouraging greater production
and better quality OF farm products.
and in handling serious transpOrta-
tion problems.
"Reopcning Of the markets for
dealing I'm contracts for future re-
livery was a recognition of the inn
portance OF the grain exchanges i'm
crop distribution.
When government control was
relinquished the grain trade and
the millers of the country were at
sea. with millions of bushels or old
crop wheat TO be marketed and an
other harvest at hand. Farmers of
the United States would be face to
face with the same situation today
II the grain exchanges were not OPP
Grating.
Hundreds OF millions Of bushels
of wheat would be ready for mar
keting with adequate marketing IA
cilities unavailable. Flour buyers
without something tangible as %
price basis. would not dare TO con-
tract for flour. Millers would be
taking great speculative chances 10
sell flour for future delivery without
means OF protecting themselves. Ele-
vator companies would be alarI I'd
at the thought OF buying wheat in
the country without a future mar
ket in which TO insure. or hedge
their purchases. Terminal elevator
companies would face the choice OF
closing their houses to wheat or OF
which, at high prices, would mean
assuming enormous speculative
risks
i"Finally. bankers would be seri.
ously alarmed at the thought Of ad-
vancing hundreds OF millions Of dol
lars TO finance crop movement
with every one. from country buyer
20 terminal elevator and milling
company. doing "a speculative bust
ness in cash wheat
This Is the situation that would
20 inevitable without proper mar
keting facilities. Indeed. no think.
ing man. no man who is sincere, car
fah TO recognize the tremendous
economic value or present method.
OF crop marketing and distribution
through the grain exchanges"