112 TO PREVENT SALE OF COTTON AND GRAIN IN FUTURE MARKETS 
as a rule sell at a premium over the option. The Federal grades, of 
course, are capable of, I think, for instance, a mixture of rye and 
durham which .make them undesirable for our character of milling. 
However, we have taken delivery of wheat and have delivered wheat, 
but that is exceptional with us. I think, broadly speaking, a mill as 
a rule, does not contemplate delivery, because they intend to mill the 
wheat before their option date matures. 
Senator SMITH. So that your operation on the exchange is merely 
an insurance against the purchase of wheat that you intend to mill, 
and you buy your wheat as well? 
Mr. VALIER. Well, we buy our cash wheat on the same exchange 
as a rule, but we are in the milling business and we almost always 
mill our wheat before the option date matures. We very often 
transfer our hedges, buying in December and August. We might 
purchase it, protect ourselves through this insurance in the option, 
in the December and later, and as December approaches us we will 
transfer our hedges from December to May. 
Senator SMITH. If this bill were to become a law, what effect 
would it have on your business? 
Mr. VALIER. Well, I have never worked any other way. It seems 
to me like it would throw us pretty much up in the air—very much. 
This is destroying a thing that has existed as long as I have been in 
the milling business, and I have never seen any substitute offered 
that would take its place. 
Senator RANSDELL. Do you consider it an essential to you in 
your business? 
Mr. VALIER. Yes, sir; I do. 
Senator SMITH. What effect has this system upon the price that 
the grower of wheat gets? 
Mr. VALIER. I think the grower gets two benefits. Wheat is 
handled on a narrower margin, possibly, than it could be under any 
different system, and I think in the long run it gives him a better 
price for his product. My reason for that theory is that this interests 
in his product a number of dealers and sellers more than it would 
be possible for him to get in any other way, and I think that always 
tends to enhance the value of a commodity. 
Senator RANSDELL. It certainly makes a very wide market where 
there would be a narrow market, does it not? 
Mr. VALIER. It certainly does. We are always in the market for 
supplies, and the country dealers are always in the market. Other- 
wise, if there was doubt and uncertainty as to the value of futures, 
the attitude of the handler would be to demand a wider margin in 
order to make himself safe. 
Senator RANSDELL. Every hour, every business day of the year, I 
take it, the producer can sell his wheat if he desires. 
Mr. VALIER. Yes, sir; we had an exhibition of that between July 
1, 1920, and July 15. 
Senator RANSDELL. What year? 
Mr. VALIER. In 1920. In that year we bought wheat in the 
country, that is, a line of elevators. For 15 days we had no hedging 
market, and if you will look up the record in those few days you will 
find there was quite a difference in the values. We would buy stuff 
in the country during the heavy movement, and it would be pouring