The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-08-30
.CAPPER TINCHER BILL
TO BRING MILLENNIUM
To FARMERS, BELIEF
PALLADIUM NEWS BUREAU

loANf L. ~ R0S.
The Capper-Tincher bill, providing
government regulation of grain ex-
changes, is about to become law.
When this act becomes operative,
its proponents say, gambling in grain
will cease. The purpose of the bill is
TO have the price of grain governed
by the law of supply and demand and
to stabilize the grain market. The
act proposes to put an end to the fol-
lowing evils of the present system:
Market manipulation by big traders;
dissemination of false crop informa-
ton: gambling in indemnities, or
puts" and calls" and promiscuous
speculation in foodstuffs. The bill
proposes to accomplish these reforms
in the following ways:
Government regulation of the grain
exchanges is provided, with the sec
rotary of agriculture as the regulator.
1t provides that books must be kept
showing accurately all the transa c.
tions on the exchanges, TO which the
secretary or his representatives may
have access at all times.
Must Comply With Rules
1t provides that the secretary of ag-
riculture may designate such boards
of trade as contact markets" where
grain futures may be dealt in, but
only when these boards of trade COM
ply with conditions and requirements
set down in the act itself.
1t employs the taxing power of the
government to eliminate gambling in
grain. In making use of this power
the bill provides that there shall be
levied a tax of 20 cents per bushel on
each bushel involved in every privil
ege or option for contract either oil
purchase or sale of grain, intending
thereby only to tax the transactions
known to the trade as privileges,
bids" offers puts and calls" in
IDENTITIES" or ups and downs"
Furthermore the bill imposes ta1
of 90 cents per bushel on every bushel
of grain involved in a contract for flu
ture delivery, except where the seller
is at the time of making the owner OF
the actual grain or is the grower. and
except where such contracts are made
by or through a member of board oil
trade which has been designated as a
contract market" by the secretary Of
agriculture, and record of the trans
action is kept for the inspection of the
secretary.
Will Run Bucket Shops.
Those who have worked in the in
terests of the bill state that the ta1
of 20 cents per bushel on the kind o.
gambling transactions that the meas
ure aims at is prohibitive. 1t is said
however, that the act does not prevent
the legitimate hedge" 1t is expected
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wire houses and bucket shops operat
ing throughout the country by making
il impossible for gamblers and specu
lators to do business on boards o.
trade.
For years the farming interests o.
the country have complained bitterly
OF the system which has permitted ar
artificial method for fixing grair
prices, a system which ignored the
law of supply and demand. The Cap
per-Tincher bill is the answer to thes'
complaints.
The Chicago board of trade ha
been the greatest center of grain
gambling On an average Chicag,
actually receives 325,000,000 bushel
of grain In a year. But in yea
there are sold on the Chicago boar
OF ITdOe eighteen DllllOu DuSuelo u
grain for future delivery"
Handle imaginary Stocks
In other words, the dealers on tn
Chicago board of trade sell for futur
delivery more than ffty-one times a
much grain as is delivered to the maj
ket in year In a period of twelv
months these dealers agree to deliver
on future contracts. more grain tha
there is wheat, corn, oats, rye an
barley grown in the whole world i
that period. More than SO per cen
of all the sales for future deliver
made on the Chicago board of trad
are not followed by an actual deliver
of the grain.
II has been stated that when tn
Chicago board of trade sells $4,000
OO0,000,000 bushels of grain in a yea
for future delivery, it does a bushes
that averages between $15,000,000,G GO
and s2O,OOO,000,0OO The maximum
business of the old Louisiana Lotter
when it was in its prime was $4,000
900 a year. Monte Carlo has annus
receipts of not more than $4,000 0
of which about half are net receipts.
What the grain growers have ha
10 contend with from the price-ixin
system soon to be legislated out {
existence is instanced by the bea
raid on wheat last year. When whes
came on the market last year, it
recalled, a bear raid began whic
lasted ten months and forced the priC
from S2.75 a bushel down to IS cent
Yet during all that time there was
greater demand for American whet
than ever before. The law of suppl
and demand simply was not above