The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1922-04-19


ers are against all future selling, and
point out that hedging is needed only
as ii protection from the manlpula-
tions Of the spectators. Orderly
movement Of the farmers crops to
market is the only stabilizer needed,
they say.
Manipulation-that is the week
point in the case of proponents of fu-
ture selling. Farmers in increasing
numbers feel that the machinery of
the grain exchange is used by the
spectators to force down the price of
wheat while the farmer has it to sell,
and then to raise it after he sells.
Professor Boyle and the economists
are apt to say that supply and demand
determine the price of wheat. But
the farmers are not convinced. j.
NJ. Anderson, president of the Equity
Cooperative Exchange, and Mr..
Drake, it's attorney, say that within
supply and demand, the spectators
can raise or lower the price of wheat
at will.
On the morning of January 21, 1921,
all the market news was optimistic.
tercsts began selling large holdings
of March wheat. In three hours, the
price of March wheat dropped more
than six cents in Chicago, and 13
cents in Minneapolis. And, the gov
ernmcnt report adds, cash prices de-
clined more than futures!
Dissatisfaction of the farmers over
this kind of thing forced future
trading acting through Congress last
year. 1t placed grain exchanges un-
der the supervision of the Secretary
of Agriculture, and abolished privil-
egcs, one form Of future selling. A
privilege amounts to an option to
buy or sell at future. Trading in fu-
lures proper will continue, however.
The act also provided that co-opcra-
tive marketing organizations must be
admitted to the grain exchanges. Ac-
tion brought in the courts by the grain
interests in an effort to defeat this
law is pending now.
Distrust of the grain exchange has
led to plans of the farmers to do
their own selling in the market
places. The United States Grain
Growers, Incorporated, latest venture
along this line, already has $4,000
members and Il crop of 9O,OO0,000
bushels pledged to a farmer market
ing agency. In fact, the growth of
the whole cooperative movement in
the grain industry bears witness to
the dissatisfaction OF the farmers
over the grain marketing marhincry.
The farmers elevator movement be-
gan soon after 1900. The appearance
Of the cooperative elevator raised
the price of grain several cents a
bushcl in it's locality. But the CO.
operative elevators encountered open
warfare on the part of the grain
dealers, particularly in the Chicago
territory. Commission houses which
handled grain from the farmers clc-
Vators were boycottcd w regular,
shippers. But the farmers elevators,
growing to more than 5000 in num-
tion of the crop, soon became so
poucrful that this practice had to be
abandoned. But the grain exchange
still remains virtually closed cor
poration as far as the cooperative
elevator is concerned. Another stage
in the battle is now at hand. The CO.
operative movement is, knocking at
the door of the grain exchange.
The cooperative organizations
haven't been received with open arms
at the grain exchanges. Evidence
presented at a hearing conducted by
the Minnesota legislature showed how
the Minnesota Farmers Exchange, a
cooperative organization, came to
grief when it tried to sell on the
Minneapolis Chamber Of Commerce.
1t bought a membership for $4,000,
but the board Of directors refused to
approve of its membership.
The company then had to sell
through Il commission house. One day
when it had II cars of wheat belong
ing to these farmers, this house fail
ed, and another commission house, Il
creditor of the first, got the II cars of
wheat. The farmers lost their grain,
valued at $4,000. They appealed to
the Chamber of Commerce, bu, could
not obtain satisfaction, and the com
pany was wrecked.
Then, there is the Equity Co-opcra-
tive Exchange. The Equity owns
and operates a big terminal elevator
in st. Paul and Il line o country clc-
vators Minnesota, North and South
Dakota, and in addition handles grain
and livestock for members and pat
r0nS on commission basis. 1t has a
paid-up capital Of 81 100000, more
than u 600 stockholders, and 4O0,-
600 active patrons, according to j.
NJ. Anderson, its president. The
Equity Exchange does a yearly bust
ness Of more than $50 100000.
Yet the Equity Cooperative Ex-
change, serving these thousands of
farmers. can't sell Il buShcl Of wheat
on the Chamber Of Commerce Of Min
ncapolis. In fact, with other inter
cstS, the Equity has established in st.
Paul a rival grain exchange, incidcn-
tally the only open exchange in the
country. However, this exchange
and thc cO.0pcrative c0mpanN have