Evening star., 1948-01-18

fixed by the exchanges continued at
low levies."
The margin Is the amount OF
money q trader must put up with
his broker to hold either commodi-
ties or securities. In the case Of the
latter, the margin Is Is per cent
Of the market price. It is ret by
the Government.
Margins Up To One Third.
Margins on commodities range al.
the way from about Is to 331s pei
cent. Thus o trader can hold q
much larger volume of speculative
interest with a given amount OF
money in the commodity markets
than in the securities markets.
The CEA report was issued as
Secretary Anderson made public the
list of 3,201 traders in eggs on the
Chicago mercantile exchange or
July 81, 1946, among which was the
name of Mr.. Boyle. The occupations
of the traders were not given. Like
wise, none was identified as a Gov
ernment official, although aides Of
Secretary Anderson said 1t Is pos
sible that some may have been such
The egg traders list was the six
teenth issued since Congress auth
orized publication of names OF COM
modify traders in connection with
its investigations to determine
whether Government insiders
have profted through speculation
Trading in eggs in 1916 was the
largest in 27 years Of operation by
the Chicago market. 1t was about
three times the level of the prewa1
years.
Market Picture Given.
The CEA said the Chicago mar
ket on July 81, 1s46-the date GOV.
cred by the trading list-showeo
the picture of a typical futures
market performing the customary
risk-bearing and hedging (non'
speculative) functions.
sThis large market developed II
the spring and summer of 1916 a.
record size egg production came
into commercial channels. Deal
ers and professors thereupon movee
large surplus stocks into storage
projecting their inventories agains
price risks with short hedges IN fu.
lures"
The CEA said the pressure Of
these short sales was absorbed by
many small spectators who came
in on the other side of the market
purchasing egg futures IN large
quantities. The agency added tina,
this speculative activity absorbed
the pressure of large supplies, ane
contributed to prevent market glu1
which had been feared earlier"
Discussing speculative activity ir
the commodity markets In general
the CEA said data indicated thai
the trading volume for the veal
ended June 80. 1s47, totaled $33,'
600 900 900 in markets regulated by
it. This was more than double thu
volume Of the previous year.
Food Scarcity Reflected.
THE world food scarcity, and the
QlGI l1lCOlIlC lCNCl dlASA 0SAAAoAAA ava
food in this country, were sharply
reflected in the markets." the CEA
said.
Under these conditions, specula'
tive activity tended to accentuats
price fluctuations - Fast-movinl
markets and thousands Of new spec.
ulative accounts raised wide range
Of regulatory problems" |
Secretary Anderson also made
public a list of so-called "bit
| traders" in cotton seed oil and WOO
tops during the 23-month perioe
ending November 80, 1947.
The only trader identified as
public official was Mr.. Pauley, WHIT
has been on several previous list
of traders in other commodities. HI
was reported to have held long
speculative position Of 100000
pounds Of cottonseed oil on Sep
| tember 80 and October 80, 1947. Thi!
means he was counting on price
rise.
A big trader In cottonseed oil !.
identified as one holding at leas1
SOC, 900 pounds in any one future or
any market.