Gambling in Farm Produce. 
30 7 
per cent., on futures are sometimes paid, and these, of course, in- 
duce men to hold grain or other commodities ; but usually there 
is no extra premium, and sometimes futures are actually at a dis- 
count, or lower than spot prices, so that there is no inducement 
whatever to hold actual stocks of grain. It might be supposed 
that corners were advantageous to producers, but it is pointed 
out that they never take place until the farmers have sold most 
of their grain ; so that, if a rise is kept up for a time because of 
a corner, the farmers seldom get the benefit of it. Moreover, 
the knowledge that there is an immense accumulation of grain 
or any other commodity, owing to a corner, paralyses trade, 
because business men are afraid of a sudden unloading, which 
would swamp the markets. At any moment a corner may break 
down, quite against the wish of those who are conducting it, 
and the collapse in prices in such a case is disastrous to a large 
number of people. Mr. Smith, in his new book, sums up his 
arguments in the following statements, which he claims to have 
proved : — 
1. That tlie option and future contracts were adopted in America at 
about the time of the origin of the present depression— say from 1875 to 1876. 
2. That, as the option and future contracts became more popular in 
America and England, the depression increased — say from 1876 to 1880. 
3. That, as the option and future contracts, combined with the registered 
settlement system, became common both in America and England, and the 
moving and importing of all the important crops of the world became usual 
on this basis, year after year the depression has increased — say from 1882 
to 1888.. 
4. Since 1888 the depression has intensified, and has culminated in 1892 
and 1893 in universal depression all over the world. 
5. That the various markets for produce, where these systems were first 
adopted, have been the first to feel the effects of them ; and that the indus- 
tries indirectly affected thereby gradually fell into the same state of 
depression. 
6. That the various markets and industries specially dwelt upon, which 
are the leading ones of the world, have all been hampered and ruined in 
many years by corners, manipulations, and syndicates, and have in consequence 
suffered from this cause, and such operations are solely traceable to the 
option, future, and settlement systems. 
7. That the values of all such commodities, after having been fictitiously 
raised by such artificial means, have eventually fallen to a much lower basis 
than they would have done, under the power of the settlement system, had 
not the artificial rise taken place. 
8. That the wholesale markets, where speculation and gambling have 
been most notorious, on the basis of the option, future, and settlement systems, 
have been most depressed and panic-stricken. 
9. That the several trades and industries act and react upon one another ; 
hence all have suffered under this option, future, and settlement system. 
10. That after fifteen years’ experience of the option, future, and settle- 
ment systems in America and England, the land which grows the produce 
has at last been reduced into a state of panic, threatening not only the 
prosperity of each trade, but also that of the nation itself. 
