Evening star., 1933-08-27
GRAIN PIT HELD
DULLEST SPOT
IN MIDDLE VEST
Federal Price Fi1'
ing and Doc Cra,v-
ford Blamed.
BY RUTHWELL DUNCAN.
Special Dispatch to The Star.

Special Dispatch 10 Tne star.
CHICAGO, August 26.-Chicagos
spectacular grain exchange has become
one of the dullest spots in the city, II
not the whole Central West. Usually
bedlam, it is now for the most part
'as dead as doornail."
The Chicago Board of Trade, founded
in 1848, a leading factor In the growth
of this city and the great central grain
belt, has been in an inactive condition
for some time. Between four and five
hundred grain traders have done little
more than sit around for the past three
weeks smoking and swapping stories.
The security market has been az
fected by the subtle influence of what
has been happening in the grain trade
here. Stock traders have been afraid
to make commitments of any size.
The same condition prevails in the
grain exchanges throughout the West.
Wheat market wiseacres say that the
trouble all started with the collapse
Of doc" Edward A. Crawford, the
speculator who beat himself, when his
trading In corn, rye and wheat
brought about the crash of the ex-
change.
Not Action Needed
Although the doctor -hnancier,
whose bubble burst with reverbera-
tions throughout the world, was sus-
pended from trading privileges by Of
flcers Of the Board Of Trade for in
ability to meet his obligations, this
was not the house cleaning that was
needed to give the grain market
needed security.
However, wiser persons maintain
that the source Of the trouble which
eliminated in the wild speculative
transactions Of this Summer may be
found In the action OF former Secre-
tary Of Agriculture Hyde in October,
1882. when he relaxed the supervision
Of reports required by the Govern
ment on all commitments in excess
of 100000 bushels. 1t is confidently
information regarding the bullish
mo monstrations which gathered
strength in late June and early july,
and that the trade board was warned
IN sufficient time to have prevented
the wild gyrations. but did not take
heed.
It is said that the clearing house
faithfully promised Secretary HYDE TO
"clean its house and keep 1t clean.
In the opinion Of the present admin
/ isration, this has not been done and
Q "scandalous situation" was allowed
to develop here.
Speculation Evaporated.
Imposition by the Government ot
minimum prices and maximum daily
which brought about the present In
activity Of the market The low limits
below which no sales could be made
were set up by the directors Of the
Board Of Trade IN conference with the
Department of Agriculture officials.
Speculative interest, the balance
wheel Of the market. evaporated and
there has been little buying. Hedg-
ing sales, to protect purchases Of cash
grains, were impossible and conse-
quently fell off. When the Board Of
Trade minimum, or the so-called peg, -
was removed on August 16, over the
protest Of other exchanges in the
United States. all prices Immediately
dropped the full extent Of the range
allowed and stayed there.
Thus there have been falling prices
in the face Of the worst crop failure
Of the generation. Spectators have
been driven away with artificial price
restrictions, which were imposed to
stop the big bull movement which
found expression in DOC" Crawford S
speculations. The collapse Of the
false price schedule came July 10,
with the debacle of Crawford
The Government then stepped in to
break the price, perhaps IL an effort
to keep it down until the farmers
might share some of it, because all OF
the grain there being sold was last
years crop, most Of which is now out
Of the farmers hands and held by
commission men, elevator and other
middle groupS.