Savannah morning news. [volume] (Savannah) 1868-1887, 1882-04-14

The recent baneful eIIectS OF specula-
tive corners" recently detailed and ex-
planned by Messrs. Depew and Jewett,
of New York, to a committee OF
the Legislature of their State, sug-
gest the sudden growth Of an evil
in this country which demands
more attention than has yet been be-
slowed on it. Mr.. Depew as attorney
for Vanderbllt's roads and Mr.. Jewett as
President of the Erie, have had excellent
opportunities to observe the effects Of
speculative combinations upon the move
ment of grain and other commodities.
They point out how the consumers are
the real sufferers. While the game is
played between rival rings of specula-
tors, neither consumers nor producers
are profted. The process of corner
ing" a commodity has been often ex-
planned. 1t is simple, and with sufficient
means and accurate information, is GER
tain in its results. The intrinsic worth
or actual supply are subordinate factors
in fixing the price of an article. For
example There may be two hundred
million bushels of wheat in the country
for sale. A ring will make a corner on
wheat for any month and buy, ostensi-
bly, for delivery to them, more than there
is-more than it is possible to deliver,
no difference what the price might be.
They advance the price and demand a
settlement at their own rates. they never
expected the wheat, the delivery of
which has now become a physical as
well as financial impossibility. In the
meantime actual transactions in wheat,
beyond those for local consumption, are
retarded or entirely suspended because
the price is not reasonable, not based on
the real value or known supply of grain.
Consumers the while must eat and
supply themselves at fictitious prices,
the excess above the true value going to
the spectators.
Commenting on the remarks of Messrs.
Depew and Jewett, and on the danger
Gus prevalence of CORNERS" the st.
Louis Republican says forcibly and well:
''This unfortunate character Of specu-
lation is the outgrowth of the present
mode of handling grain and products; OF
the accumulation in the hands of indi-
viduals of vast sums of money and Him
table credit, which may be transmitted
from point to point or across the con-
tinent in moment, and of the approx
mately accurate knowledge of the visible
supply of any commodity within the
range of possible delivery at any agreed
point at a fixed time.
''The remedy for this great and grow
ing evil is not obvious, even to those
who have most carefully studied the sub
iect. The methods and forms of those
who make corners-and are nothing, in
truth, but gigantic gamblers-are pre-
cisely those of legitimate operators. The
difficulty of reaching them through re-
strictive legislation is apparent. No
effective means has yet been devised
without limiting and destroying legiti-
mate commerce, which would be to sup
plant one evil with another. Neverthe-
less, something will have to be done.
Capital in railroads and in water carriage,
based upon the known demands of pro-
duction, and the right of consumers to
be secure in their daily supplies at their
true value, will force the effective appli
cation of some remedy The reckless
greed of gamblers will not be permitted
always to paralyze industry and infict
great and needless hardships ca the great
body of meritorious consumers"