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To: Bill F. who wrote (12113)	8/19/2000 11:17:52 AM
From: long-gone	Read Replies (1) \| Respond to of 436258

Bill, Have you seen this? Would you like to give us an analysis of this? Is the game really as rigged (as many of us suspect) against anyone who goes long any precious metal or any Precious Metals producer? Addressing the question in one of your articles might draw the larger audience: Thanks Richard(paas shareholder) ps: "The" questions are "Do the shorts run the exchanges"? & "Are these 1, 2, 3 or 4 traders in position to deliver silver if called upon to, or are they naked short?....." or "Is Ted Butler & anyone who holds these producers jsut stupid?" gold-eagle.com August 14, 2000 Mr. Daniel Rappaport Chairman New York Mercantile Exchange, Inc One North End Avenue World Financial Center New York, NY 10282 Dear Mr. Rappaport; On August 11, 2000, the New York Mercantile Exchange, Inc. (NYMEX) issued a press release announcing margin increases for your palladium contract..... This is preposterous and absurd. Obviously, the NYMEX has taken such drastic action to eliminate the chance of default..... That's bizarre..... Only by mandating that shorts hold exchange-sanctioned warehouse receipts by first notice day, or sooner, will guarantee against default. This was my message in the article I sent you - The Shorts ARE Different - gold-eagle.com Considering the NYMEX's poor record in disorderly market conditions and defaults, I would think you would want to fix the problem, instead of continuing your unfair favoring of the shorts. The absurdity of raising margin requirements beyond 100% for longs is a clear signal to the world that the NYMEX does not want their business. You would rather turn away bona fide business, than demand shorts be able to honor their commitments? Do the shorts run your exchange?..... Are these 1, 2, 3 or 4 traders in position to deliver silver if called upon to, or are they naked short?..... As of the date of this letter, there are close to 300 million ounces of silver open, held long and short, in your September silver contract, with less than three weeks to go before first notice day. This represents 300% of warehouse stocks, and a shocking 50% of world annual mine production. Half a year's worth of world production, up for delivery in three weeks, and your rules allow it. Sir, like so many other things unique to your exchange, this is without precedent in commodity futures history..... If you adopt this rule, you will never have another delivery problem. If you don't, you will have nothing but delivery problems and the continuous threat of default. Your recalcitrance against adopting a rule that is fair to all your members and the public and that will guarantee your exchange to be default-free, is disheartening. In fact, I can think of no legitimate reason to not enacting immediately the rule requiring shorts to hold warehouse delivery receipts on, or before, first notice day, or liquidate or roll-over their position. ... I intend to hold NYMEX and its officers and directors liable, on a corporate and personal basis, for aiding and abetting the shorts. I also intend to attempt to persuade the authorities to initiate criminal proceedings under the RICO statutes for the ongoing and continuous manipulation in COMEX silver, that has resulted from your refusal to enact rules that would insure fair trade. As I did the last time I contacted you, I will keep this matter private, if you demonstrate good faith by you telling me that you intend to enact the short-certifying rule change, or offering a legitimate reason why not. In either event, if I don't hear from you by Thursday noon, August 17, 2000, I will make this letter public and begin all efforts to force this rule change on you. The NYMEX and COMEX have favored and coddled the shorts for too long. It's time to level the playing field. Very truly yours, Ted Butler