The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-06-23
Secretary: V:
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Signs Grsss<
Trade Rules
Regulations Protect Unwary
Spectators Dealing in Fu-
lures, Wallace Explains
in Upholding Act.
Laws Points Covered

Des Moines, Ia, June 22.-General
rules and regulations governing fu-
ture trading grain markets. under the
grain futures act, were signed here
today by Secretary of Agriculture
Wallace and sent to Washington to
the Department of Agriculture for
PRONUNCIATION.
The purpose Of the regulations, Sec
retary Wallace explained, Is to pre-
vent the dissemination of untrue and
misleading rumors or information
which may affect the price of grain;
to prevent manipulation of prices or
the running Of corners; to acquire in
formation concerning operations on
future trading markets which will
make 1t possible to make a thorough
and systematic study Of the manner
in which grain prices are registered
on these markets.
The rules provide that reports shall
be made to the supervisors OF the va
rious future trading markets. either
by every Individual firm which oper-
ates on these markets or through
responsible clearing house at each
market. Reports must be made be-
fore the opening Of the market the
following day.
To Protest Speculations.
Secretary Wallace, in his statement,
says 1t was not the intention of the
trainers of the law to prevent future
trading. hedging or legitimate epecu-
lation, nor to interfere with the nor
NAL and proper operation Of future
trading markets. The secretary de-
clares that II was not his purpose to
enforce the law in a manner which
would annoy legitimate operators
either at mbarket centers or at coun-
try points, nor to discourage normal
and proper speculation.
1T is my purpose" he added. ito
put a stop. If possible. to the circu-
lation of unfounded rumors set afloat
by designing operators TO deceive un.
wary spectators. and further to do
everything possible TO put an end to
unfair price manipulation.
Legitimate operators on the mar
ket need have no fear OF unwarrant-
ed meddling with their business.
While they are required to report.
they will be handled In absolute con-
fidence and with every safeguard
which II is possible to throw around
them. Reports OF the business of in
dividual spectators are not required
except in the case of very large oper-
ators whose business is of such vol
ume as to have a pronounced eeffect
upon the market"
Outlines Rules.
Secretary Wallace said the reports
must contain the following informa
tion or each concern which holds a
seat on the market:
A-The net position at the begin
ming of the period covered by the re-
port.
B-The quantity OF grain purchased
and the quantity Of grain sold on con.
tracts.
c-The quantity of grain delivered
and received.
D-The net position at the end of
the day.
E-The aggregate of all long and
short account.
Amount May Vary.
F-The net position at the end of
the day OF each separate account car
ried by the firm making the report,
IL the net position equals or exceeds
such amount as may be specified by
the administration. II is understood
that this amount may vary according
to the size Of the different markets.
Operators are required to keep
their records in such condition that
they can be readily checked. They
also arc required to furnish the Of
ficer in charge OF the administration
when requested true copy Of any re
ports circulated carrying market or
crop information that may affect or
tend to affect the price, and must be
able to show the source Of such in
formation.
Operators also would be required to-
furnish all information in their
possession relating to Any attempt to
manipulate or corner any grain.