Evening star., 1933-07-25
Reduction Also Ordered on
Holdings of Futures by
Any Trader.
LARGER MARGINS TO BE
DEMANDED OF INVESTORS
Trading in Weekly and Daily In.
IDENTITIES Eliminated at
Conference Here.
By the Associated Press.

By the Associated Press.
Farm administrators and representa-
tives of grain exchanges today agreed
tentatively to limit daily fluctuations in
prices on wheat and other grains to
cents bushel as a permanent policy.
The agreement was reached before the
close Of two-day conference. at which
four principal changes in grain-market-
ing practices were approved.
The first, the daily f1uctuation limit
at S cents, in order to obtain final ap-
proval. must be submitted for action to
the Business Conduct Committees Of the
Chicago Board Of Trade and exchanges
at Minneapolis. Kansas City, Duluth
and other points which ordinarily op-
crate along rules similar to those at
Chicago.
Holdings Limited.
The second provisions will be the re-
duction Of the holdings of futures of
any trader to a maximum volume,
probably from 100000 to 100000
bushels. the exact figure to be deter
mined later after exchanges have sur
veyed the situation.
The third provision calls for in
creasing margins of traders. In this
instance the exact figure was left un-
determined and probably none will be
fixed. Rules of the exchanges now re-
quire that brokers insist upon "ade-
quate margins" from traders.
Farm administrators took the posi-
ton that higher margins should be
employed than have been in practice
for some time in order to prevent q
sudden increase in margin requirements
and a depressing effect on prices.
The fourth reform" demanded by
administrators and approved by the ex-
change representatives will be the
elimination of trading in both weekly
and daily indemnities. This has al
ready been suspended by the Chicago
Board and other exchanges as result
Of insistence by farm administrators
and the Grain Futures Administration.
Cents Present Limit.
Since last Thursday limits on daily
fluctuations to cents bushel on
wheat, 5 cents on corn and 3 cents on
oats have been employed under q spe-
ciai rule of the exchanges.
O. Administrators informed Peter B.
Carey, president of the Chicago Board
of Trade, that President Roosevelt re-
garded 8 cents as too large margin OF
fluctuation.
The scent per bushel fluctuation will
apply to wheat, rye and barley, with
cents on corn and 3 cents on oats.
Formal Report Filed.
In a formal report which represent
atives Of exchanges signed and turned
over to farm administrators they said:
TT Is our opinion in informal confer
ence that the action of the exchanges
in limiting fluctuations in the futures
markets and establishing minimum
prices was a necessary act to meet
temporary emergency. but that such
minimum price restrictions should be
as soon as market conditions
permit or make 1t necessary and q
limit on fluctuations Of cents per
bushel on wheat. rye and barley; 4
cents on corn and 3 cents on oats
should thereupon be put into effect as
permitted by existing exchange rules.
1.-The elimination by the exchanges
Of trading IN indemnities has removed
one of the prime causes of excessive
price movements
ITO further avoid the recurrence Of
violent price changes the undersigned
representatives of the different ex-
changes will Immediately recommend to
their respective organizations earnest
consideration of the following:
81. Changes In exchange rules to
provide for permanent limitation Of
daily price fluctuations.
20. Limitations CT open lines OF
speculative commitments.
IS. Adequate margin requirements,
particularly as applied to increased re-
quirements for larger speculative COM
mitments.
u. The permanent elimination Of
trading in indemnities."
About four days will be required to
complete preliminaries Of the code
agreement. but II one is drawn In that
time q further wait will be necessary
for notice before Secretary Of Agricul-
ture Wallace can call q public hearing
on the proposal. which is necessary be-
fore the code could be leEaHzed.
Normally 10 days are required for
this notice. but it was indicated that tn
this instance Wallace might construe
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