The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-09-21
A STARTLING EXHIBIT.

1t is well known that there have been
heavy losses this season on the bull side of
grain margins We have been placed in pos
session of certain facts, collated with care
by gentlemen who has made the subject of
statistics a study, which show very conclu-
slvely that so far as prices are concerned ac-
tual supply and demand has been no factor
whatever this season in regulating grain quo
tatons.
The facts and figures given the Journal are
from fifty-three counties of the State of In
diana, and may be relied upon as ac-
curate in all respects. Between April
10 and June Is of this year parties
residing in these fifty-three counties
bought" wheat or margins, to the amount
of 21O, 700 900 bushels This was bought on
a rising market. 1t was bought at prices
ranging from $1.04 to Sill, the larger part of
1t averaging Slip. The amount bought by
parties in this State was, as is seen, more
than double the whole annual e1 port de-
maud. Now it is very probable that Indiana
in this regard is about an average of five of
the central Western States. On this basis
then, parties in five of these States, Ohio, In
diana, Illinois, Missouri and Iowa, bought in
the same period 1858 SOC, 900 bushels of
wheat, over two hundred millions more than
the largest crop ever produced in this coun-
try. All OF these margin-buyers were
future sellers. None of them bought for
legitimate uses. This fact, of course, was
known to the bear side of the operators.
When wheat went up to $1.18 and $1.19, the
rise stopped, because all who were willing to
invest in margins had done so, and the
demand ceased. The amount bought"
was known to the wealthy ring of operators
who possessed themselves of these contracts,
and the squeeze began. The buyers held on
through the balance of June and July and
part of August, and paid their margins, hop
ing for an upward turn. They did not know
that they had bought over two such wheat
crops as we produced this year, but the ring
who began the squeeze did. They be-
gan in August to sell or forfeit their con-
tracts. The price of wheat went down
below 81, Notwithstanding it was known that
the crop was short one. Why? Because
there were sellers, hard pressed, on the mar
ket with 1,O53, SOC, 900 bushels. The result is
that the wealthy operators inside the know
ing ring have possessed themselves not only
of the margins from time to time, but of the
for a ho dol;
by some of the parties, at price much be-
low the legitimate one based on supply
These buyers were business men, brokers,
county officers and farmers. A large per
cent. belonged to the latter class, and as
consequence scores OF farms have changed
hands in the past two months. When you
get down to actual figures, as obtained
in this State, they give a clew to the
singular fluctuations of the markets, and
they explain why the price of wheat went
below dollar under the influence of short
crop of nearly 100 900, 900 bushels
1t need hardly be said that this class of
speculation is the most disastrous to legiti-
mate business that now prevails Perhaps
the disasters to the losing operators may
have tendency to stop it. But the specula-
ton as a rule is done in corner and so I'M
der cover as to make the remedy available
only to the sufferers themselves. If these
thousands of small operators could be
brought to understand that they are merely
victims lured to ruin by the great specula-
tors, the purpose of this article would be
reached and they would possibly cease to be
lambs for the shearing OF unprincipled
Gamblers