Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-08
GRAIN TRADERSA ASK
EASIER BANK RULE
Seek Reopening Of Both Cash
and Future Dealings at
Farley Here.

BY the Associated Press.
Representatives of the principal grain
exchanges today asked for modification
Of the banking rules to permit imme-
diate reopening Of their markets to
both cash and futures trading on the
grounds that the Nations food supplies
might otherwise be seriously disturbed.
The representatives presented their
problem to Henry Morgenthau, IT,, new
chairman Of the Farm Board. He was
expected to seek the opinion Of secre-
tary Of the Treasury Woodin regarding
the prospects Of modifying the rules.
Morgenthau said he would have no an
nouncement to make regarding the
plans for reopening the exchange be-
fore 4 pm. today.
Peter B. Carey, president Of the Chi
cago Board Of Trade, said limiting the
trading to cash grain had the result
OF disturbing the market and prevent
ing 1t from operating on a normal
basis" and that all trading now is
suspended at the principal markets.
Millers Make Appeals.
Numerous Geographic appeals from
mlllers were received today and yester-
day by Morgentha,, who said these as
serted they would be unable to sell
flour unless the exchanges are open,
permitting them to hedge -four sales
against purchases of wheat for future
delivery.
Carey said under Secretary Woodin's
plan to permit banks to make funds
available for keeping up q movement
OF foodstutfs to market trading in cash
wheat would be possible. but that the
exchanges regard limiting trading to a
cash delivery basis as very nearly i'm
possible"
Cash sales represent only . small
volume Of the total trade at Chicago,
but are heavier at Kansas City. Mime
apolis, Duluth and other points nearer
wheat production.
With Carey. representing the Chicago
exchange, were S. c. Harris, Fred H.
clutton and Leslie Perrin. p. B. Get
chell, president Of the Minneapolis
Chamber of Commerce, and u. F. Hart,
president Of the Kansas City Board OF
Trade, were others invited to attend.
Officials Also Attend.
Others who joined in the conference
included Herbert E. CASTOR. secretary
of the Farm Board, and George s. Mil
nor vice president and general manager
of the Farmers National Grain Corpor-
alton, Chicago, and president OF the
Grain Sterilization Corporation, which
soon is to be dissolved under Morgen-
thau'S plan to halt Farm Board stablli-
cation activities.
Morgenthau announced late yester-
day that the Grain Sterilization Cor
poration, through which the board at
tempted to peg" the price Of wheat,
had disposed Of its last holdings Of cash
wheat during the last week. about
100000 bushels 1t still owns So
39l 900 bushels of futures, mostly con-
tracts for May delivery.
The board will get out Of stabiliza-
tion-including the futures-aS soon as
possible. but in disposing Of the futures
We intend to do nothing radical to
disturb the market" Morgenthau said.
When the futures are disposed Of,
the Sterilization Corporation will be
permitted Ito die" Morgenthau said.
The last of the cotton held by the
Farm Board when 1t sought to stabilize
cotton prices is being transferred from
tiulc W tAlllc W VAC 1eed SAooo l11oCl
an act of Congress. Morgenthau Sa1d
that he believed the board would BE
out of cotton in q few weeks"
Morgenthau, in announcing the exact
holdings of wheat futures, long wrapped
in mystery, said part OF the new deal
will be to tell the facts about grain
stabilization.'
While the board will continue making
leans to farm co-operativeS they will
not be charity loans" the new chair
man said. He said the exact basis on
which future loans will be handled
remains to be determined.
Reorganization of the board which
under President Roosevelt's plan is to
result in the merger of all Federal
farm credit agencies under the direc-
ton of Morgenthau, is proceeding
steadily.
Two professors, DR.. w. I. Myers of
Cornell University, and Herman Oil
plant Of Johns Hopkins, are whipping
the plans into shape with part Of the
reorganization expected to require spe-
cial congressional sanction.
IorRenthau said Chairman Jones of
the House Agriculture Committee has
delegated two experts in drafting legis-
lation to assist the professors.
Functions Of the Federal Farm Land
Board, the intermediate credit banks,
the crop production division Of the
Department Of Agriculture and the
farm loan agencies of the Reconstruct
ton Corporation will be merged with
the Farm Board under the plan.