Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1873-01-31
Board Of Trade Talk and Tricks.

"PriceCurrent," "Options," "Cor-
ners," 'Bulling the Market" "Bear-
ing the Market" "Long in Wheat"
"Short in Wheat" "Collaterals,"
ga Cover" "Settling Differences"
"Seller Ten," and other phrases.
The "price current" as published
in daily papers and commission
house circulars, are made up by
commission men, and often in their
interest; they are frequently below
real value and below actual sales.
A customer in the country sees by
the regular price current that corn
sell tor-say 40 cents per bushel;
he ships to commission man a
quantity, who sells and makes re-
turns at 40 cents. The customer
has received as he supposes the
highest market rates, and as con-
sequence, is well pleased with the
commission house that did his bust
ness. But he did not see New
York shipper in private consulta-
ton with said "nice commission
man." make an arrangement with
him, viz: "Corn pays Is cents mar
gin to ship according to quotations.
You let me have that corn at 40
cents. Twill send my CLERK on the
board of trade to take it as you Of
fer it, and l send you my check for
forty-fvc cents" Isn't it nice all
around? The owner is satisfied be
cause he gets the market rates; the
buyer is satisfied, for he gets it SO
as to leave margin OF 10 cents;
the commission man is satisfied, for
he gets his regular commission and
FIVE cents stealin.s too. This is one
of the smaller things-one of the
tricks of the trade that small opera
tors may do.
If clique can command from
three to ten million dollars to "cor-
ner" the market with, they may
make a bigger steal; pocket half the
value of half a million bushels CT
grain, and wipe out half the opera
! tors in the street.
The board of trade has lingo
of it's own, unintelligible to out
siders, but as well understood by
itself as the most carefully drawn
| document would be.
The President calls to order by
rapping on the railing before him
with wooden hammer. A half a
dozen men shout, "No. 2, 1903, sell
Ter TO-" AS many more on the other
side yell, "No. 2, 1909, buyer lo.'
Probably in ten minutes 10000 to
$4,000 bushels Of wheat will change
hands-only there is no wheat
about it. If wheat goes up the sci
cr pays the difference; if down
the buyer pays it. There is more
grain bought and sold than there is
raised.-Thc meaning Of "l3os
BUYER tcn," is that the buyer pro-
posec to give 1908 per bushel for
No. 2 wheat, and have the option OF
taking it at any time within ten days.
On the last day named he must set
tie whether he makes or loses by
the speculation. Sometimes the
options run 20, 80 or 60 days.
Whenever the seller has the option
the buyer cannot demand settle
ment until the afternoon of the last
day named, nor can the seller
obligc the buyer to take the grain
until the time is up.
When the market fails it is called
"break." He who sells what he
has not got is called "short" in
that. He who buys for future de-
livery is called long in whatever he
buys. When clique form a com
bination to hold all of certain
commodity in market so that "shorts
cannot cover" then the market is
said to be "cornercd," and the clique
may demand their own price until
the market 'breaks.' A "cover" in
grain speculation is procedure
corresponding to hedging bet in
horsc-racing, j. e., he who fears he
will lose bets Oh the other side also.
A "lame duck" is one who has
lost heavily but has not failed. One
who has failed and cannot meet his
contracts in grain is u "dead duck. )"
When a commission house makes
speculation outside Of its regu-
lar business the transaction is call
ed a "fyer."
Cllques often buy all Of any par
ticular kind of grain offered, and
so force the price up until the
"shorts" are "hceced." This is
known as "bulling the market"
The opposite of holding the market
is called a ''let up" The clique
throws their grain on the market,
the shorts are supplied and the mar
kct "brcaks."
A spool" is formed by number
of men putting an amount Of money
into the hands of one of their party
to operate with; after the thing is
over they divide the gain or loss.
The closing upis calleda "get out"
When there is no demand and no
shorts who have "puts" to cover it
is an "off market"
The securities upon which men
get money from the banks to operate
with are called "collaterals." Gov
eminent bonds, gold bearing state
bonds, first class railroad and bank
shares are called "gilt edged collat-
teralS."
When party sells grain on spec
ulation he does not own or handle
or deliver any grain but pays the
difference or receives the difference
between the price he sells for and
the market rate at the "option," the
settlement is known as delivering
differences"
Two or more men put their heads
together and pretend to buy from
or sell to each other large amounts
of some kinds of grain for the pur-
pose Of affecting the market and
producing panics. This sham
transaction is called "washing the
Market" and is as honest and re-
putablc as any of the gambling of
the Chicago board Of trade.
Gambling in grain is not differ
ent morally from other gambling,
but from it's panics and the false
standard of values it sets up, it is
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