Evening star., 1933-07-23
TRADING IN GRAIN
TOREOPEN MONDAY
Shorter Sessions and Mini.
mum Price Limits Set
in Chicago.
BY the Associated Press,

BY the Associated Press.
CHICAGO, July 22.-Grain futures
markets of the Chicago Board of Trade
will reopen at 1890 am, Monday IN a
shortened session and with minimum
price limits established. These limits
will prevent any decline Of wheat, corn,
oats and rye below the closing quota
tions of last Thursday.
This action was taken tonight by di-
rectors of the exchange under the pro-
visions of one of their standing rules
and as the elimination Of series OF
meetings. Until further notice, the
hours for trading in grain and pro-
visions will be from 1890 am. to l:l5
pm, except on Saturday when the
market will close at noon.
The change announced by the di-
rectors in placing minimum on 1u-
lures prices Is revolutionary, and Ill
a statement issued by Peter B. Carey,
president of the exchange, Is pointed
to as measure OF benefits Tor the
farmer who is preparing to harvest
should result in restoring the confl-
dence of the general public"
Action Held Justified.
Placing a minimum price on the
principal cereals traded here is fully
justified by the action to the cash
market in the past two days" Carey
stated. Wheat and corn showed a
decidedly strong tone both on Friday
and today. and made a material up
turn in value.
There is every indication that hour
mills and industries processing corn and
oats have experienced an exceptionally
large demand for grain products during
the past two days. Since the futures
market closed. professors have been
buying cash corn at 2 to cents over
the basis prices of Thursday and -four
mills have been bidding eagerly IoI
cash wheat Basic prices on wheat
have. advanced 2 and cents since
Thursday.
Crops DeteriOrating.
1.-THE new corn crop in this country,
together with Spring wheat In botn
the United States and Canada has
been steadily deteriorating, due to not,
dry weather Corn receipts and Win.
ter wheat receipts are diminishing ana
there is every indication that the cash
grain demand, together with lighter
receipts will create still higher pre-
miums for cash grain.
THE Chicago Board Of Trade Is
market place, solely, but its ofnclas
and directors are convinced that no
hysteria induced by excess public liqul-
dation should be encouraged. We
,iv1iv
have established are fully justified by
the conditions as we see them now"
The minimum price established by
the directors today will remain in ef-
feet until further notice.
President Carey, with the presidents
of the Minneapolis, Duluth and ST.
Louis Grain Exchanges, will attend
national agricultural conference In
Washington which will conevene Mon
day.
Trading Range Suggested.
Outlines of the first broadly con-
structive plan to institute rule OF
reason In the speculative grain trade
took shape here today.
Preliminary to a national agricultural
conference Monday at Washington,
called by Secretary of Agriculture Wal
lace. ong-distance telephone talks be-
tween grain trade leaders here and
Government spokesmen in the National
Capital evolved a tentative proposal
that instead of permitting unrestralned
wild fluctuations in prices method be
adopted by which extreme advances or
setbacks would be limited to rule
of-reason range above or below $1.O3
bushel for wheat in Chicago.
nh, 81 of q
here is equivalent to an average price
of SO cents a busfel on the farm, and
is identical with the commodity parity
aimed at by the agricultural adjust
ment law sponsored by the Roosevelt
administration and recently enacted
by Congress.
IS Cents Set as Minimum.
Complete liberty to speculate at any
range within reasonable limits either
above or below the parity price would
be preserved, the limits being say 95
cents as a minimum and $1.10 as Q
maximum. These specific limits, how
ever, are not at present authoritative
but illustrative.
Enforcement of whatever limits may
be adopted would be attained by means
of a Government license system under
ers in the various grain markets, Chi
cago and elsewhere, who did not sub
scribe to an agreement to refrain from
buying or offering to sell grain outside
of authorized price limits would be de-
prived of their rights to do business.
Highest officials of the country's
grain exchanges ere already en- route
to Washington to be in readiness to par
ticipate in preparations for any action
taken by the national agriculture con-
ference. The proposed plan Is widely
at variance with longtime traditions OF
the grain trade. Nevertheless, restrict
ing of grain price changes to proposed
definite limits above or below the pro-
posed parity price is believed by many
traders to be a much more desirable
course than suspending of trade in fu-
lures. or attempting to limit maximum
swings from day to day.
Doctrine of Fair Price.
Back of the plan is the doctrine OF
fair price. It Is asserted by advocates
of the plan that the measures would be
in accord with the administration policy
Of a new deal, and would be a practical
means of preventing under unduly rapid
price changes such as in two days TINS
week pulled the wheat market down 5O
cents a bushel after a hectic rise that
hoisted values to almost triple what
they were about six months ago.
A feature of the proposed grain trade
agreement or code is provision tnat
the code would be appropriately altered
or Cancelled in case Of presidential ac-
ton changing the gold content Of the
k6liar or using any other device OF
direct currency expansion.
SPECIAL NOTICES.