Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-04-19
CAPPER ASKS CURB
ON WHEAT GAMBLER
Would Stop Wheat SpecuIa.
ton If Exchange Had
to Be Closed.
M ARTHUR CAPPER.


jeader of the farm bloc.
Special Dispatch to The Star
TOPEKA. Kans., April 1s.-Wheat
has been running 'hog wild" on the
Chicago Board of Trade as it used to
do In the days before there was a
grain futures act That seems to
be the only word forsit. No one can
imagine the deliberate law of supply
and demand yanking down prices %
cents In "a hours nor 81 cents in Is
days.
One day when Chicago received 29
cars of wheat the Board of Trade
deaH In $4,000 bushels.
Another day, with foreign demand
more than usually active. there was
price slump Of IA cents
Then came the abrupt order from
the Secretary of Agriculture, who was
charged with enforcing the anti
grain gambling law, directing an i'm
mediate probe Of the transactions Of
the grain exchanges.
perhaps some of the big operators
Wintering at Palm Beach have been
taking a "fiier.'
Some one. or some group, was able
TO Juggle prices regardless of no visi-
Die change in the world supply and
demand situation.
Sees Gamblers at War.
1t Is a war between gamblers.
FARMERS suffered no great loss by
the big drop in prices anymore than
they made gains by selling 81 wheat.
MOST OF their wheat was sold soon
AFTER harvest. before that price was
anywhere near reached. The United
nf
ports only Is per cent of the total
crop In the hands of farmers March
l, when the usual, or 10 year averge
Is more than IS per cent. About
o9,000,0O0 bushels of wheat were In
the country mills and elevators last
year and $4,000, 900 bushels less than
IN 1923. A dependable market author.
ny forecasts a carry-over of 1000
ooO bushels smaller than a year ago
WIN season not specially favor.
doie Tor Winter wheat, there is no
great bear dope" in these facts.
Effect Bad in 1923.
But this does not mean a manipu.
iated market between seasons has no
harm In 1t. The famous Nav squeeze
OF 1923 demoralized the milling trade
ana injured the domestic demand for
wheat for months.
The Ill effect on legitimate grain
business caused by the recent furry
IN the market may be judged from
this extract from a letter / have re-
ceived from the Clyde Milling and
Elevator Co.. Clyde, Kans. It's man.
ager and secretary. Mr.. Sager, writes
me:
The last week or 10 days have seen
sales Of only 600 barrels of flour. and
we have lost 5000 barrels more which
could have been sold had the market
remained steady. How can the inter.
| ests OF the country be built up, men
employed and the general welfare
benefited when bare-faced gambling is
permitted in such a basic commodity
| and foodstuff as wheat?"
Spectators Battle.
In the same way a manipulated mar.
ket drives away real buyers and SELL
ers by creating artificial values, with
the result, an eastern market review.
er points out, the SPECTATORS have
to sell out to another. AS this usually
means ruin for the losers. the debacle
Is prolonged as far as possible
/ have assurance from Secretary
Jardine that the Department of Agri-
culture will go the limit under the law
and forego no opportunity to ascer-
tain the influences that have been al
work in the market
Under the anti-grain- gambling law
artificial manipulation of wheat prices
Is penitentiary offense. Another and
more drastic remedy, should the in
vestigation disclose unlawful practices
would be TO cancel the trading privi-
lege as a contract market" of any
grain exchange found not to have en-
forced the rules for the prevention OF
| illegal trading and vicious short SELL
| ing.
Would Be Serious Step.
This would be a serious step, but nc
| more serious than the Chicago Boarc
| of Trade was itself forced to adopt
| the month after We went to war with
Germany, when trading was suspend
| ed on the Chicago Board of Trade May
IT, 1917. by order of it's directors, be-
cause the market was running away
| and the board at that time felt com.
| PEELED to act
| The Chicago Board of Trade has al
ways had the means to control ant
prevent the evils practiced by profes
| sional market gamblers, but has con.
sistently declined to apply them.
| The Capper-Tfncher law was the re
suit of a 30-year war to compel such
| market supervision. It was passed
| with difficulty, and the first draft was
killed by the Supreme Cosrt It is
the first legislation of its kind and
| still Is somewhat in the nature of ar
experiment. AS legislation, it was the
| best law that could be drawn from
knowledge then available. The De
partment of Agriculture approved it
and it is now up to the department
to go the limit of its broad authority
to enforce 1t. Secretary Jardine's de
termination to do this will be gen
orally and heartily commended. II
the findings show the law needs
strengthening, or discover loopholes
which need stopping up, the depart
| ment should recommend and sponsor
such changes.
No one wants the anti-grain- gam
| bling law repealed, except for selfish
reasons. 1t will not be repealed II
| found in any way inadequate, it will
| be made fully equal to it's mission
A showdown in the present instance
| Is in every way desirable.
l