Jasper County Democrat, Volume 23, Number 73, Rensselaer, Jasper County, 8 December 1920 — STILL AFTER “BUCKETSHOPS” [ARTICLE]

STILL AFTER “BUCKETSHOPS”

Senator Capper's Measure to Be Offered to Both Houses. Washington, Dec. 4. —Senator Capper of Kansas today made public his proposed bill to stop gambling in foodstuffs and cotton. A tax of 10 per cent, designed to be prohibitive, on "future" trading on grain and cotton, except by actual owners or a limited number of traders under federal license, is the basic feature of the Capper bill, which is to I be introduced .in the senate next week by the author, and In the house by Representative Tincher (Rep.) of Kansas. * „

k The* 10 per cent tax would apply to options and the measure would affect grain producta as well as the raw grain. “The bill will stop gambling in wheat,, corn, cotton and other fArm products," said Senator Capper. “It will eliminate the wheat pit and the blackboard. It will put out of business the thousands of wire houses and bucket shops by making It impossible for gamblers and speculators to 4eal on boards of tradfe. “The bill undertakes to preserve the legitimate ‘hedge,’ but cuts out all gambling and manipulation." Farmers, dealers and manufacturers buying or selling grain or cotton for actual delivery would not be restricted by the proposed law, Senator Capper said. Penalties of 60 per cent of the proposed federal tax, a fine of SIO,OOO and one yeaj-’s imprisonment for violation of the bill’s provisions are incorporated in the Capper bill. Sellers of grain, grain products and cotton who at the time of sale would be owners of the “actual physical

property” and traders regularly engaged in growing, dealing in or in uvanufacturing and registered with the internal revenue bureau would be exempt from the 10 per cent tax. Such traders, however, would be limited in their dealings to three times their actual transactions during the preceding year, and would be required to report all dealings to the internal revenue bureau. In a state-*' ment outlining his bill, Senator Capper said that only- about 1 per cent of “futures” trading in grain and cott6n was bona fide. Millions of dollars were lost by farmers, as well as speculators, in the recent bear raid of the grain markets, Senator Capper asserted, adding that consumers as well as producers were the .victims. “The Chicago Board of Trade, as now conducted,” said Senator Capper, “is the world’s greatest gambling institution. . More wheat was sold in Chicago in the month of October than was raised in the entire United States this year. This year’s corn crop was sold fourteen times in Chicago before a bushel of corn had reached the markets. Only about 1 ppr cent of the trading done in futures is a bona fide transaction for actual delivery. There is not the slightest doubt that the gigantic raid made by the bears on the board of trade was the chief cause of the recent disastrous slump in the price of farm products. Because a lot of market gamblers find it convenient to bet on the daily quotations, the farmers who has been forced to sell his hogs 'and. cattle at a loss, while meat still sells at war prices, is again made the goat The farmer already has lost more than $i,000,000,000 by the bear raid. Brokers and commission houses have cleaned up over $40,000,00(f in margins and commissions alone. The lambs who play the market have lost days in speculating in cotton and wheat.

“I find all grain and cotton dealers, millers and spinners recognize the evils of the present system, and are anxious to stop gambling In food products. They will heartily support this measure to plaoe the business on a legitimate basis. I am also assured of the support 9f the farm organizations. The commission houses, brokers, bucket shops and the market speculators generally will fight