The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-05-02

OF cotton ut d certain hour; but supposed |
dignity Is given TO the operation by trading
In fictitious bales OF cotton.
After all, what the brokers boys DO In |
the streets Is precisely what the brokers do |
IN Il more systematic fashion. They are
betting on whether cotton or grain will 90
up or down, the size OF the bet depending
on the amount Of the iuctuation. No bet.
ter Illustration Of the extent to which spec.
ulation In our exchanges oyertops legiti.
mate buying md selling can be given than
by quoting from the last report OF the cot
ton exchange, from which It appears that
during the year ending May q, 1881, actual
cotton was sold on the exchange as fol.
lows: For export, III, 2G2 bales; for spin.
ming, l5l ,06l bales; for speculation (hold.
Ing in store for risc), IL, 1893 bales; In
transit, 3,lGO bales. Total, 3l0,5lG bales
representing the entire strictly legitimate
business of the exchange During the
same period, 2G.7ol 500 bales were bought
and sold for future deliycry--that is, pieces
OF paper representing bets OIL that amount
OF cotton were exchanged, no actual cotton
appearing in the transaction.
The question, "Who supports tho $4,000
New York brokers who live III luxury"
must suggest itself to every ono. They
cannot live on one another Tor long. 4
gang OF sharpes cannot exist without
pigeons 10 pluck, and the same rule holds
good with the enormous gambling rings
known rs the stock, cotton and produce OK.
changes. Tho speculative public unqucs.
,ionably pays the piper. Our brokers are
notorious for high living and extravaganza
OF every kind, and it may be taken for
granted that ut the lowest figures their
earnings will average 5000 year. Four
teen thousand brokers, ut $1,000 year,
makes total OF $70,000,600, which repre-
scnts the sum paid annually to New York
brokers by country gamblers for the pleas.
IRE Of gambling. An experienced broker,
who has large dealings with tho South, ex-
planned the recent high price OF cotton by
the fact that in some southern communities.
every man, woman and child had been
Specializing in cotton. In the West, the
same thing is true Of grain. People too
poor to lose more than s. ut II time club
together and divide the profits or share the
loss generally the latter These are the
people who enable the New York broker
to buy the April strawberries.
Some Of the lambs-in fact, suppose.
the ma jority-belicvc that the particular
broker TO whom they entrust the sum they
have resolved to devote to gambling ire
solving also, OF course, that il it is lost moth
ing shall ever tempt them to gamble AGAIN.,
is II sharp individual, brighter and sharper
than any oil the other brokers, who will be
sure to know how the market is going.
The fact is that the brightest broker that
ever speculated is no better of than the
simplest. Two or three OF the Oldest bro
kers in the business, one OF whom has been
dealing in cotton for thirty years, have told
me that nothing is more certain in that
business than that sagacity, shrewdness
and experience 60 for absolutely nothing
in cotton Or grain speculation. Gases were
cited OF several men who, having passed
years in compiling elaborate tables, show.
ipg the fluctuations OF cotton, hour BY
hour, for periods Of years, had specialized
upon the deductions reached, and los.
every cent by this system faster thNu il
they had trusted to inspiration. Not
dozen men are known TO have retired from
cotton exchange speculation with fortunes.
Fortunes are made there every day or two,
but they are lost just us quickly. Ii the
spectators on the spot have so little
chance, what chance have the outside
spectators, who have TO do all their gam.
bling through others?
So much is written just now about gam
bling in cotton and grain that it may not
be without interest to describe briefly the
machinery for specializing in these staples,
and the meaning Of the exchange slang,
which makes market reports unintelligible
to most persons. The cotton eS-
change was organized in 1871. There are
four "calls" Il day, "call' being the name
for ii short auction ut which members Of
the exchange bid on cotton, the price oh.
tanned going forth as the official price OF
the exchange. Specializing is done in lots
OF 100 bales: The charge which broker
makes for "turn," TINT is, buying and
selling 100 bales, is S25. Cotton is quoted
ut so many cents and hundrcdtlls Of n
cent pound. To'day's quotation is llGG,
each h,!ndredth OF a cent being called
point The margin required for specua-
ton is S222o;a change Of one point equals
q gain or loss Of $3.50. II cotton falls 80
points, or half cent II pound, it wipes out
the entire S2225 margin and closes the trans.
action, leaving the Spectator S25 in debt
Tor the commission on the turn" A lively
day in the cotton exchange is, when cotton
lluctuatcs more than 10 points; last week i,
fell in one day So points. On the quietest
day OF the year it may not vary three
points. The 'scalper," rs the professional
broker-speculator is called, watches the
market on Il spot as cat watches II mouse
When the market goes up or down enough
points to enable him to make 20 or 80 dol
lars, he closes the transaction and pockets
his money. Speculation in "Aiarch cotton"
april cotton" ETC., means that you sell or
buy cotton which you agree to deliver or
receive at such price At any time during
March or April. Cotton is often sold in this
way long before it is grown, and the same
is true Of wheat. "Year cotton" or "ycar
wheat" means that it can be delivered or
called for any time during the whole year.
On the produce exchange No. . red vim
ter wheat is the great staple OF speculation.
All transactions are made upon the basis OF
5000 bushels, Just rs in the cotton exchange
100 bales is the unit. The margin required
by brokers is $500, or five cents bushel,
ind so is charged for making the "turn."
4 lively day Oh the exchange is when wheat
varies in value more than Two cents BUSH
el. We have never known greater iluc-
luation in value than i've cents in one dry.
But in Chicago they have livelier times;
last Monday wheat was worth Sl.223
bushcl, and on Tuesday it was Sl.29,. Chi
cago sometimes buys and sells 1000, 900
bushels OF wheat in day, and our last
crop Of wheat was only $50, 100000 bushels.
Comment is needless.