Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-06-26
THE RUTLAND HERALD
WEDNESDAY, JUNE %, 1873.
THE PRICE OF CORN.

without a sufficient number OF buyers 10
reduce the glut, the prices will be, al
most necessarily. lowered, while if con-
sumers are anxious to buy, and the mar
ket does not contain sufficient of the
commodity to supply their needs, prices
increase. This general rule is as old as
the study of political economy, and Is
universally acted upon. Practically, it
has some exceptions, which are not
necessary to be referred to, as they DO
not enter into the subject matter which
we propose to consider. Now, while we
admit and believe that the farmers OF the
west are suffering from a want OF trans
portation, that is for the means of trans
porting the products of their farms at
such rates of freight as will allow them
large, or, perhaps, remunerative, profits
thereon, we would ask, in all serious
ness, whether the grave difficulty rests
upon the shoulders of railroad managers,
or elsewhere? If railroads are alone to
blame, the remedy is easy and at hand.
1t cannot be obtained, as we have, here
tofOre, endeavored TO show, by calling
upon Legislatures to regulate rates of
freight, or by making war upon the jul
dietary, or, even, by attacks upon the
integrity and private character of rail
road managers. This, to be sure, seems
to be popular, just now, but the Ameri-
can people are eminently just people,
and, although, at times, liable to be
carried beyond reasonable bounds in mo-
ments of popular clamOr, their sense OF
Justice soon asserts itself, and they ap-
prove where they have, before, unwit-
tingly condemned. Sometimes, they go
to the other extreme of approval, which
is even worse, in its effect, than the ex-
treme of censure. The only remedy, in
our judgment, for undue charges for
transportation is by legitimate compe-
tition. In all other classes OF business,
we regulate prices, to a certain extent,
by competition that is we prevent eX-
traordinary and eXtrayagant profits
There is another consideration, however,
which enters into this grievance Of the
farmers.
The principle that demand and supply
regulate prices enters into this question
of grievance in two ways 1t may be
taken for granted, we presume, that in
cultivating his farm, farmer has two
objects first, to afford a comfortable
subsistence for himself and family, and,
second, to make mOney-that is to re-
ceive therefrom something over and
above what is necessary for securing the
comforts, conveniences, necessities and,
if you choose, the luxuries of life. So
far as affording the necessities and lux
uries of life are concerned, the question
of prices-so far as railroad transporta-
ton is concerned-is not affected by the
market but to an insignificant degree.
Most of the necessities of life, and many
of the luxuries, are or can be raised by
the farmer himself, and he is compelled
to purchase very few articles outside.
If mere support was the only purpose of
farm life, we should hear but little in
reference to this question of prices. 1t
is when the farmer gets beyond this
point and has the laudable ambition of
adding to his own wealth, as well as to
the wealth of the nation, that the matter
of prices becomes important to him and
to us. A farmer who did not seek some
thing beside his own immediate support,
would be a cumberer of the earth, and
curse-rather than a blessing, as he now
is-to the country. 1t becomes, then,
an important question for him to con-
slider whether he shall continue to raise
corn-we say corn, because all the dis
cussion has arisen upon this-or shall
turn his attention to other kinds of pro-
duce. If the demand for corn, or any
other commodity, should exceed, to any
extent, the supply, railroad freights
would be of no consequence to the far
mer, although they might be to the con-
sumner, and the prices therefor would
necessarily become remunerative. Aside
from this, the trouble is and always will
be, unless remedied, that the producer is
The remedy suggests itself, that consum-
ers shouldb be brought to their very doors.
A demand should be, and can be, Great
ed at home. With a proper attention to
the manufacturing interests, the demand
would, at all times and under all circum-
stances, equal if not exceed the supply.
Such solution would not necessitate a
change in the kind of products raised,
but each could, as now, raise what they
pleased, with ready demand and an as
sured profit.
This is not the only view in which the
principle of supply and demand enters
into the question. Brokers and middle
men" gamble as much in grain as they
do in stocks and gold. Throughout the
rebellion, gold constantly increased in
yalue-or, to speak more properly, paper
depreciated-partly in consequence of
initiation and partly from "gold gamb-
ling, that is buying or selling gold for
a rise or tall, for the purposes of specu-
lation. Corn is bought and sold in Chi
cago, New York and elsewhere in the
same manner. Thousands of bushels of
corn are daily sold in Chicago at a GER
tain price, to be delivered on a certain
day. When that day comes, it is not
expected that a bushel of corn will be
delivered, but the price is fixed by the
price caused by that suppositous sale.
After the contract for sale is completed,
and the time fixed for payment, the buy
er goes into market and actually buys
grain, to be actually delivered, for the
purpose of producing a scarcity, thereby
enhancing the price, while the seller
does the same thing with the intent to
produce a glut, thereby lessening the
price. These men, in effect-if not in
fact-bet on the price of corn, the wager
being the difference between the con-
tract price and the fictitious price thus
created. Yet this fictitious price and
these men control tho mario Of tbro,,,.I