The Delta independent., 1921-10-21
BRIEF REVIEW OF ACT TO
PREVENT GAMBLING IN
MARKETING OF GRAIN

WASHINGTON, Oct. 20.-Gambling
in grain by boards of trade in the
United States must cease on Christ
mas Eve next. This is in accordance
with 1.-The Future Trading Act" which
is more familiarly known as the Cap
per-Tincher Bill. By the provisions OF
the act it becomes effective four
months after it becomes a law and it
became law August "a, 1921, which
would make it effective December "a.
Under. the provisions of this act
all transactions in grain (Which in
+ cludes wheat. corn, oats, barley, rice,
fax and sorghum) for future de-
livery shall be taxed at the rate of
20 cents bushel in addition to all
taxes now imposed by law, except
| (a) where such transaction is the
sale of cash grain for deferred ship
ment or delivery, or where the seller
is at the time OF the transaction either
the owner or the grower of the grain
covered thereby, or the owner or
renter of land upon which the grain
| is grown, or an association of such
owners or growers of grain; or (b),
where such contracts are made by or
through member of board of trade
which has been officially designated
as a contract market
| Defining Contract Markets"
| The Secretary of Agriculture is au-
| thorized to designate boards of trade
as contract markets when they COM
ply with the following conditions:
(a) When located at a terminal
market, actually dealing in reason
able volume of cash grain and having
recognized official weighing and in
spection service: Cb) makes reports
in accordance with the rules and reg
ulations prescribed by law; (c) pre-
vents the dissemination by the board,
or any member thereof, of false, mis-
leading and inaccurate crop report or
market information; (d prevents the
manipulation OF prices or the corner
ing of any grain by any dealer or
operator upon the board: (e) admits
to membership and all privileges any
authorized representative of any fl
nancially responsible and lawfully
formed and conducted cooperative as
sociation of producers.
The reports which the boards of
trade must keep must show in detail
all of the transactions entered into by
the board or any member thereof,
showing the parties to all contracts
and their addresses, date OF contract,
amount Of grain covered by contract,
prices and terms Of delivery, any as
signment OF transfers of contracts
and the manner in which said con
tracts were fulfilled or terminated.
All such records shah be kept for a
period of three years and shall at all
times be open to the inspection OF
any representative of the U. S. De-
partment OF Agriculture or the q. S.
Department of Justice.
May Use Public Exposure
The Secretary of Agriculture may,
upon his own initiative, make any in
vestigations regarding the operations
OF any board OF trade and may pub
liss in his discretion the result OF
sucn investigation. which published
report may include the facts as to
any actual transaction or aransac-
tions, except snch data which would
disclose trade secrets or names Of
custOmers.
III Inc sdCt CTedleS u COlHfNlSb1OD cOID-
posed od the Secretary of Agriculture,
the Secretary OF Commerce and the
u. s. Attorney General. 1t is the duty
OF this commission to serve as a
board to conduct hearings in the mat
ter Of suspending or revoking the
right of board OF trade to be desig-
nate,l as contract market" The
decision of this commission shall be
final except any board Of trade may
appeal to the Circuit Court of Ap-
peals for a modification or setting
aside Of decision of the commission.
In the language of the man of the
street, the act permits legitimate
trading in grain and recognizes what
| is known as hedging" as legitimate,
| but uses the taxing power of the gov
ernment to put out of business those
| who engage In gambling, which is
known to the trade under such vari-
Gus names as puts and calls" priv.
ileges," bids" '-nps and downs"
offers" and "indemnities." The pur.
pose OF the act, expressed in the hope
of its sponsors, is to stabilize the
prices Of grain, as It is maintained
the prohibition Of gambling will stop
the tremendous fluctuations in prices
and the manipulation of the markets.