The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-05-24
Kansas Grain Dealers AssOcia-
tiOn FavorS Restrictions Now.
Only Legitimate Business En-
titled to Buy Futures.
BOARDS MADE BIG MISTAKE
Reinstatement in July a Poor
Move, e. j. Smiley Asserts.
Freight Rates an Outrage
Congress Is to Blame.

The Kansas State Grain Dealers
association is in favor of the restric-
ton of trading in futures to the men
who are actually engaged in the grain
business and whose futures trading
means hedging against loss--in favor
of the elimination of the grain gam
blers entirely, according to the report
which is to be submitted by the secre-
tary, E. ]. Smiley. at the a.-nual meet
ing which opened in Kansas City to-
day.
Referring to the Capper bill now
before congress on the subject of
grain gambling, Smiley says. II be-
lieve the original Capper bill meets
with the approval of 80 per cent of
the country trade, and at least SO per
cent of the members of the board of
trade, excepting Chicago.
TT is our opinion that the boards
OF trade made a very great mistake
in reinstatingSfuture trading last July.
The general public is mindful of the
fact that from June 1, 1920. until
July Is, 1920, a period of As days,
during which the grain corporation
did not function, and there were no
government guarantees on the price
of wheat, and during this period the
extra fluctuations were only IL cents
per bushel on cash wheat on the Kan
sas City market They also know
what happened the following fifteen
days in July after future trading was
reinstated. During the first fifteen
days of future trading IN wheat, the
range between the high and low price
for No. hard wheat on the Kansas
City market was from sass to $2.2s
per bushel, drop of 60 cents per
bushel. I do not claim that the re-
instatement of future trading was re-
sponsible for this decline, but do say
that to the farmer and the politician
it looks mighty suspicious"
Freight Rates on Congress.
THE existing freight rates are ar
outrage, but who is responsible?' ?'
Smiley asks 1.-The interstate COM
meree commission cannot be blame
as it is only attempting to carry out
the terms of the Esch-Cumnins bill
Responsibility for existing condition,
rests upon the United States Congress
! 1t laid the foundations for the, diff
culties confronting business today
when it passed the AdamSon law. Hav-
| ing gotten the country into the pres
ent mess, congress should be expected
to get it out 1t should reduce both
gers and freight and also reduce
wages, and give the producer some
show
In discussing the present bushes:
depression. Smiley says: While the
f, weight of opinion leans to economic
conditions abroad, being responsible
| for the rapid material decline on al
farm products, we are of the opinion
! that we were outwitted by our Eng
{ lish cousins, who knowing that We
produced a supply of food stuffs il
excess of domestic requirements, sue
ceeded in forming a combination o,
! foreign buyers for our surplus of foot
stuffs."
The coming year is full of uncer
tainty," Smiley's report says. Il
would appear like Ishmael of old
| every mans hand is against the grai1
merchant" Enumerating some Of tht
difficulties which confront the deal
ers, Smiley says: "All of these thing
will have to be contended with dur
ing the coming crop year, notwith
standing the fact that the president o
the United States in his message t,
! congress declared for more bushes
/ in government, and less government
I in business"