32 TO PREVENT SALE OF COTTON AND GRAIN IN FUTURE MARKETS 
Mr. DUVEL. He would deliver it on a future contract. Yes, sir; 
he could deliver it. 
The CHAIRMAN. It would not be a future contract; he would not 
have to deliver it until September. 
Mr. DUVEL. But he might prefer to sell it right from the threshing 
machine; dispose of it. Otherwise he would then have to ship it to 
the market and deliver it in September. He could do that. He 
could do either one. He has two ways open. 
The CHAIRMAN. Suppose instead of oats going down it went up 
to 80 cents. Then the other fellow could say: “I bought your oats, 
and I want you to deliver them to me.” 
Mr. DUVEL. Yes. 
The CHAIRMAN. And he would have to deliver them? 
Mr. DUVEL. Yes. 
The CHAIRMAN. He would not make a loss, as he might if he had 
not entered into that transaction. He can still make a profit, because 
he can raise his oats for 62 cents a bushel, and he sold them for 70 
cents. He would have a profit of 8 cents per bushel on his oats. 
Mr. DUuVEL. He would have that price, whatever he sold at. 
The CHAIRMAN. The only advantage he would have in making 
that sale before he sowed his oats or put them in the ground, would 
be that he had actually made a deal by which he could make a 
profit on that crop of oats. He may have lost a lot of money by 
depriving himself of making a bigger profit if the price of oats 
went up. 
Senator RANSDELL. Suppose a farmer had a lot of grain, and the 
terminal warehouses or elevators, or whatever you call them were 
full, and they could not handle it, could you not imagine many cases 
where the ability to trade in the futures market would be the abso- 
lute salvation of them? 
Mr. DuviEL. Well, I do not know in that case whether it makes so 
much difference. Of course, under the present rule they can deliver 
any cars on track when there are no facilities in the way of storage, 
under a futures contract which, of course, they would not have to 
take on a regular cash transaction. 
Senator DENEEN. The Canadian farmers can ship their stuff for 
a couple of months after they get it harvested and in the bin. Now, 
how do the farmers protect themselves in the markets after he has 
harvested and know what he has? What does he do? 
Mr. DUVEL. He must do one of two things in Canada in that 
case. He must either carry the wheat in his own bin, or at some of 
the terminals, if he has it in the terminals, or he can dispose of his 
actual cash wheat and carry a futures. He could do that, Senator. 
Of course, the Canadian farmer, as I say, makes use of the futures 
market more than our farmers do. That is because they are larger 
farmers and have wheat in larger quantities. 
I do not know, Senator, that I have anything more unless some- 
body has some further questions. 
The CHAIRMAN. I guess that is all, then. 
Who is the next witness? 
The CLERK. Mr. Tenny, assistant chief of the Bureau of Agri- 
cultural Economics, Department of Agriculture.