The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1883-05-10
GAMBLING OF. THE DAY.

\ VAMDllNU5V VI LILY la j..
In Boards OF Trade. Merchants. Ell
changes and by Weak Bank OF
ficials.-The Fascination or a Gam
Which Makes all It's Devutees 1t
Victims at the Last. "
Gath's New York Letter. ,r =. ~
I was talking last night to construc
tor and superintendent of telegraphs il
an important part of the country. I ha,
ventured to remark that while tn
American people had the name of bein
natural gamblers and SPECTATORS,
Thought that there were less Speculation
here proportioned to our population
than in any country.
I"No," said my Geographic friend
gambling is very general, especially ii
the western and southern states. Gamb
ling in grain options and kindred thing
in Chicago cleans out nearly every town
within very large radius of that city .
its surplus capital. For instance, there
is the little city of Ottawa, Illinois
Some time ago there was $3.50, 900 taken
out of that town by the Chicago grair
sharpers. After that was over nobod,
could do a speculative business in o
tawa. But as soon as they get surplus
again gambling rooms will be opened in
that town, and the same old lesson will
be repeated: In short, the Americans
are such an intelligent people, and use
the telegraph, the newspapers and SINH
lar facilities SO thoroughly that they are
bound to speculate as soon rs they get
some MONEY ahead. When they lose The
surplus they sit down awhile and engage
IN regular labor, and take the lesson to
heart; but, being of a sanguine tempera-
ment, they start in again when the times
look rosy. Thus I am afraid it is going
to be for the long future"
-, "How do you get informed on matters
like that?'
"Why, the agents of the Chicago bro
kers, or their principals, are approached
Dy me to extend my te geographic bust
ness. l will say to such a man on the
Stock Board, why don't you 20 to o.
tGWa and open a room and put UP a
blackboard and let me put in a wire for
you, and [ will give you the quotations
az fast as there are sales in Chicago?'
NO Ottawa for me- the broker will saw:
we have beaten that town all up and
cleaned it out. In three or four wears it
may do to beat up again, but not now"
Said my friend: ''There was a town
called Louisiana. Two or three Chicago
agents went down there and opened
rooms to speculate with the telegraph
blackboard, &C., and they took out of
the town not only all the citizens had to
loose, but the men in the bank got ii way
with $1,000 of deposits. 1t made such
an excitement that the. city council re-
solved that no more exchanges, so-called,
snouio De licensed; ana the citizens, be-
sides, organized Vigilance committee
to shoot any man from Chicago who
should come down there and open an
Office. Several fellows went down and
scanned the place, and found it adyan-
tageous to leave. Yet Louisiana will
make money normally again, and again
be bled by Chicago"
"What do you think about this deal
ing in short ribs, grain, corn, lard, &C.,
on the option PLAN"
"Why," answered my friend, in a
burst of confidence, there isn't man
In the United States smart enough to
deal with these brokers in Chicago.
tries it, but they all end the
same way. There are, perhaps 1000
members of the Produce Exchange in
Chicago seats are now quoted at about
4, 900 apiece. About 400 of the men in
that board are what are called scalpers.
--merely operating for themselves. The
regular brokers, those who are looking
out Tor customers, scour this whole couu-
try up and down.. and put their black
boards and wires into every village
which is thrifty and with capital. Their
game ls to get all you have got, and you
may as we'll make up your mind that
they are going TO have it if you COM
mence dealing with thenl."
"Ihen they 90 not get their principal
business right in Chicago2"
lord bless you, no. New York City
sends to Chicago probably three fourths
now in a speculative wav. The Chicago
produce broker mas factor in New
York. The shave, or commission, is
of cent. per busl,el on
grain, or $25 on every 1000 bushels. An
ordinary deal is 10000 bushels, or $3.50.
The man in the Chicago board takes one
half OF that commission. and gives the
New York chap the other half for send
ing him the customer. 1t would be hard
to tell how many of these halfcommis-
sion agents are pitched all over the
country. They are generally Chicago
men, as smart, or little smarter, than
the brokers OH the spot. They strip the
speculative men of New York of nearly
NIL their money and that is one reason
why the New York Stock Exchange does
not recupe Ever since Jim Keene
introduced in New York the system of
dealing in options and futures in Chica-
90, the New York Stock Exchange has
been depleted Of that speculative work
Of which it once had the monopoly"
Here a New York gentleman, who has
been dealer in everything for years
and has made his $5OO,000, remarked:
81 have been an occasional Spectator
during the period OF about eighteen
years. Being also merchant, 1 have
kept my books in such way as to show
the net result of my speculation, as I
would of any other part Of my business.
The average specu(atur does not keep
his accounts as close as that. At times +
have made thousands Of dollars, and I
would have supposed, but for my books,
that in the long run I was clear. But
being about to close my bust
ness up and take long holiday, I had
my speculative account balanced. When
took out the commission paid to the
brokers found that I was really short.
In other words, the profits on my specn-
ations have been more than absorbed
by the brokers' commissions. Toward
the end made large operation in a
piece of property, which I myself made,
and there was ahead about $4,000.
That represents eighteen years of stock
speculation, or less than 81 900 a year
profit. l have been a favored specula-
tor, too, because hardly ever touched
anything that did not help to make.
how mucn worse DO you suppose those
persons have Jared who speculated with
,ut being on the inside, and had to pay
he same commissions that did,"
I asked this gentleman ifhe ever dealt
in grain and produce options.
.Never but once" said he. II got "a
oo;nt,' as they call it, one time from q
Chicago man, to put up 81 900. He told
ne that I was ahead, in few days, and
went off somewhere and let the &C.
count run. When I came back he said
ae wanted more margin, SO I gave him
Iuother 81 900. After a second absence
returned and said I thought I would
ike to close that account. He present.
I'd me with bill for $2,2SG so losses I
smiled, but let Chicago alone after that"
Here the Chicago man spoke up, say
n,