Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-04-24
FUTURES ACT NOT TO STOP
GRAIN EXCHANGE TRADING

based on the taxing power of con
gress.
LAS all of the exchanges were full
ly acquainted with the requirements
of the former law, there should be
no difficulty or delay in complying
with the new statute. Exchanges eff
fected are those at Chicago, Min
neapolis, Duluth, Kansas City, st.
Louis, Toledo, Milwaukee, San Fran
cisco, Los Angeles and Baltimore.
This law does not interfere with
hedging transactions on the board
of trade. Neither does it interfere
with ordinary speculation in the
buying and selling of contracts for
future delivery. If, however, there
should be evidence of undue manip-
ulation, or attempts to corner the
market, or of the dissemination of
false or misleading information
about crop or market conditions by
members of the exchanges, such
conduct would be inquired into and
promptly dealt with.
Discrimination Barred
"In addition, the law prohibits the
exchanges from discriminating
against cooperative associations of
grain producers who may desire
membership in order to obtain the
use of the facilities of the grain ex-
changes. The secretary of agricul-
ture also is given the requisite au-
thority to examine the books and
records of the members of the ex-
changes and to require such reports
as may be necessary to carry out
the provisions of the law.
''The reports that this law will
put the grain exchanges out of bust
ness or interfere with their legiti-
mate functions are without founda-
ton. 1t will not Interfere with prop
err, operation of such exchanges. Nc
! one will be prosecuted. No proper
business will be harassed.
''The law gives us an opportunity
/ to observe and inquire into the op-
erations on grain exchanges and
put stop to improper practices, if
such exist. 1t gives opportunity to
study this whole system of register
| ing prices of grain. In year or SO
we should be able to speak with au.
thority concerning grain exchange
| dealings. Nobody can do that now,
In administering the law we con-
fidently expect hearty cooperation
from legitimate dealers in grain and
from all others who favor free, open
and competitive markets"
Regulation Needed
In connection with the attitude OF
the department of agriculture and
Secretary Wallace it is recalled here
that when the legislation was pend
ing in congress it's advocates speciti-
cally said they had no desire to put
the grain exchanges out of business,
but were convinced they needed
regulation. Representative Tincher,
co-author of the bill, explained that
a certain amount of legitimate flu
lures trading and hedging was nee
essary and aided in the marketing
of grain. The law passed was re-
garded as rather mild" consider
ing the agitation that has gone on
against the grain exchanges for
many years and some of the sup
porters of the legislation were sur
prised when the grain exchanges
carried the law to the courts.
Secretary Wallace indicates that
if more stringent regulation seem
required after a year of two Of OBJ
servation it can be supplied and
the decision of the supreme court
upholding regulation so far as it
is provided in the present law gives
promise that an act with more
teeth" in it also would stand the
test, the court having decided af-
Tentatively, under the interstate
, commerce clause, the broad ques'
ton of the power of congress to
control and supervise operations on
on grain exchanges.