The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-06
TO STOP GAMBLING
IN FARM PRODUCTS
Senator Capper Has Bill
Putting Prohibitive Tax
5 On Deals In Future IL
CORN SOLD Ia TIMES -
.se< BEFORE HARVEST

More Than Entire Wheat Crop Sold In
Speculation In SAMPLERS Put
Farmers Price Down and Consumers
Price Up, es.lfa-e.f,Ss ~ vi a7s-8.
WASHINGTON Dee. GA bill to
break up pit" gambling in wheat, corn
and cotton futures has been prepared by
Senator .Capper.- 1t levies a prohibitiye
tax of 10 per cent on the value of the
commodities IN which gambling prevails.
In explaining the necessity for sucn
legislation and what his measure is ex-
pected to accomplish, Senator Capper
said:
The bill will stop all gambling in
wheat, corn, cotton and other farm pro-
ducts by making use of the taxing power
of congress. 1t will eliminate the wheat
pit and blackboard. 1t win put out of
business the thousands, of wire houses
and bucket shops operating in every city
in the United States by making 1t I'M
possible for gamblers and Spectators to
deal on boards of trade. The bill ac-
composites this by imposing a prohibitive
tax of 10 per cent on all contracts for
future delivery except when made by
farmers, dealers or manufacturers who
are buying and selling for actual de-
livery.
'.sThe bill undertakes to preserve the le-
gitimate hedge but cuts out all gambling
and manipulation. A memorandum must
be kept OF all transactions and d report
made by both buyer and seller to the col
Iector of internal revenue. 4 penalty
equal to 30 per cent of the tax levied, and
in addition a fine net exceeding $4,000
or Imprisonment for not more than one
year, is imposed upon violators of the
act.
The Chicago Board of Trade as now
conducted is the worlds greatest gamb-
ling institution. More wheat was sold
in Chicago in 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 bushe
of corn had reached the markets. Only
about 1 per cent of the trading done in
futures is a bona ide transaction for
actual delivery. There is not the slight
est 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. Be
cause 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 Il loss while meat
( still sells at war prices is again made
the goat. The farmer already has lost
raid. Brokers and commission houses
| have cleared up over forty millions in
margins and commissions alone The
lambs who play the market have lost
more than S1000OOO0O i'm the last 90
| days in specializing in cotton and wheat.
"Spcculative trading ON the exchanges
! abrOgateS the normal relationship be-
tween supply and demand. The Specu-
latOrS. both in wheat and cotton. know
| when the farmers must sell and they
take advantage of it to rob them an
! nually of their Just and hard earned dues
! by running down prices before the mar
! kct gets the crop. and then running them
up on the consumer. These two great
/ world staples are made the footballs of
the speculator and the whole country is
/ victimized.
| This wicked business is an immediate
! sequence of the restoration, July -, Of
option trading suspended during the
war. The pure functions of boards of
trade are valuable but when gambling
becomes not merely an incident of such
trading. but the main part of the bust
ness on the boards of trade, as we find
it now. it is time for the government to
take a hand. These exchanges must be
placed upon an honest basis and COM
PEELED to contribute to the security of
4 business and the welfare of the country
Il find all grain and cotton dealers.
/ mIllers and splnners recognize the evils
| of the present system and are anxious
| to stop gambling in food products. They
! will heartily support this measure to
| place the business on a legitimate basis.
| am also assured of the support of the
| farm organizations. The commission
houses, brokers' bucket shops and market
spectators generally will fight it.
shall Introduce this bill ON the first day
Of the session and urge its immediate
L mss ~, - L.,
/ house by Congressman Tincher of Kansas.
nnmlhnE If tie an-1.i..l. :.