Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-14
REFORMS IN GRAIN
TRADING PROMISED
Chicago Exchange Head
Says 1t Will Cooperate
With Jardine.
By the Associated Press

BY the Associated Press
CHICAGO, May 14-The Chicago
Board of Trade will start at once to
met the constructive suggestions" of
Secretary of Agriculture Jardine made
yesterday in Washington, Frank l..
Carey, president of the Board OF
Trade, said today.
The wide fluctuations in grain
prices which caused Secretary Jardine
to order an investigation of operations
OF grain operators had confronted the
board with Il situation entirely new in
peace times. Mr.. Carey said. He also
disclosed that Representatives of the
board had conferred with the Secre-
tary last Monday.
When there has been opportunity
to digest the full report" said Mr.
Careys statements relative to the
Secretary's declarations of yesterday
that excessive speculation must be
curtalled. the exchange will at once
set about to meet the constructive
suggestions which it may contain.
rms Will be in line with the policy
followed by the exchange since the
enactment of the grain futures act.
Rules Constantly Changing.
solve its own problems has been
clearly shown over a period covering
half century. BY the constant pe.
vision OF its rules the exchange has
met the ever-changing conditions OF
world commerce. Long ago II made
impossible the old abuses that devel-
oped into what were known as cor
ners. For many years there have
heen no situations of that character.
for the exchange itself promulgated
rules that prevented them.
In TIE past six months there de-
Neloped situation that was wholly
new to the exchange. Never before
had the exchange been called upon
to meet such widespread fluctuations
in peace times.
America had a bountiful wheat
crop. All other countries, with the
possible exception of Australia suf-
fered shortages. a buying power that
was worldwide was thrust upon the
exchange, and this buying continued
undated many weeks, and to limit
ed extent Is still present. Under the
stress OF such unprecedented circum-
stances the exchange functioned re-
markably we'll If abuses crept in
they We're strikingly few when viewed
from the great volume of business
transacted. Nevertheless, ii is the
genuine desire of the exchange to
correct any abuse that may be found,
just as 1t has done in the past But
in view of the fact that the situation
which developed is unprecedented, it
is deemed judicious to avoid hasty ac-
ton that might be of a disturbing
character and to deal with the ques-
ton in a broad, thorough manner.
During our conference with Score
tary Jardine Monday it became evil
dent that he is DESTROYS of lending
full cooperation to the grain eX-
changes of the country. / am con-
fident. too. of his desire to cooperate
with business generally in a construc-
tive way. The views of Secretary Jar
dine will be brought TO the attention
of the directors. who have for several
weeks been studying the general prob
lem of price fluctuations"
Only several days ago the board Of
trade took cogniZa nee of public state
ments made by grain men to the eff
feet that speculation had interfered
with the normal flow of grain prices,
and authorized an inquiry to receive
any information submitted by any of
those who were quoted in the news
papers TO bear out their statements.
ANY such information received as to
any extensive speculation or improper
trading was to be submitted by the
board to the Federala Grain Futures
administration.