The Mankato free press., 1920-12-10
Capper Bill Would Put the
Limit On Trading
MEASURE IS BY KANSAN
Dealing In Futures to Be Wholly
Barred Both In Food and
-. Cotton
ASSOCIATED Press Dispatch. ]

4
Washington, December 4.-Sena.
tor Capper of Kansas today made
public his proposed bill to stop
gambling in foodstuffs and cotton.
tax Of ten percent, designed to
be prohibitive, on future" trading
IN grain and cotton, except by actual
owners or a limited class Of trad
ers under federal license. is the
basic feature of the Capper bill.
which is to be introduced in con-
gress next week. The ten percent
tax would apply to options and the
measure would affect grain prod
ucts as well as raw grain.
The /bill will stop gambling in
wheat, corn, cotton and other farm
products" said Senator Capper. "it
will eliminate the wheat pit and the
blackboard. 1t will put out Of busi-
ness 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
legitimate hedge but cuts out all
gambling manipulation.
Penalty 10 Heavy.
turers, buying or selling grain or
cotton for actual delivery would not
be restricted by the proposed law.
Senator Capper said.
Penalties of fifty percent of pro-
posed federal tax, fine OF $4,000
and one years imprisonment for vi
olation of the bills provisions are
incorporated in the Capper bill.
Sellers of grain, grain products,
cotton who at the time Of sale would
be owners. Of the actual physical
property" and trades regularly en-
gagged in growing. dealing in or man
ufacturing and registered with the
internal revenue bureau would be
ten percent tax. -
Such traders, however, would be
limited in their dealings to three times
their actual transactions during the
preceding year and would be required
to report all dealings to the internal
revenue bureau.
Trading Not Bonafide.
In a statement outlining his bill,
Senator Capper declared only about
one percent of future trading in
grain and cotton was bonafide. -
Millions Of dollars are lost by
farmers, as well as spectators, in the
recent bear raid of the grain mar
kets," Senator Capper declared; as
serting that consumers as well as
producers were the victims.
"The Chicago Board of Trade" SEN
ator Capper said, ''is the worlds
greatest gambling institution. More
what was sold in Chicago In Octo-
ber than was raised in the United
States this year. This years crop
was sold fourteen times in Chicago
before bushel of corn had reached
the markets Ony about one percent
Of the trading done in futures Is q
bonafide transaction, OF actual de-
livery. g
There Is not the slightest doubt
that the gigantic raid made by the
bears on the board of trade, which
was the chief cause of recent disast-
erous slump in the price Of farm pro-
ducts. Because lot Of market
gamblers find 1t convenient to bet
on the daily quotations, the farmer
who has been forced to sell his hogs
and cattle at loss while meat still
sells at war prices, is again made the
goat"
Loss To Farmers.
"The farmer already has lost more
than a billion dollars by the bear
road. Brokers and commission houses
have cleaned up over forty millions
in margins and commissions alone
The lambs who play the market have
lost more than one hundred million
dollars in the past days In speculat
ing in cotton and wheat" q
81 find all grain and cotton dealers,
millers and spinners 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
legitimate base. I am also assured
of the support Of the farm organiza-
tions. The commission house, brok-
ers, bucket shops and market spe-
culators generally, will fight it."