The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1885-01-16
A
How Thsy Are Carried Out on Change in
Chicago.

Chicago.
There are few readers who do not
have some idea of what q commercial
corner is, but many of them may not be
quite clear as to its various causes and
effects and its influence on trade gener-
ally. The. Chicago News says: In or
der to corner any article of commerce it
is necessary to secure a sufficient
amount of the supply of that article to
be able to dictate the price ct which it
will be sold. When the corner in corn
was started it seemed q bold thing to
attempt, in view of the large amount of
corn being received from the country
and the general belief that the amount
to follow was very large. 1t was a bold
thing to attempt, but those who attempt.
ed and achieved it are not only bold and
and experienced spectators, but pos
sess almost unlimited capital which is
the main consideration. As an illus
tration of the nature Of corners the
present case will serve as we'll as any.
The temptation to control the corn
market could hardly have existed but
for speculation, which guaranteed a de-
mand within a specified time. Owing
to the high price of corr during the sea-
son o great many traders had sold
short, with the expectation of being able
to buy for delivery at a lower price and
and a good profit. Consequently any
Spectator or clique of spectators,
who could secure a controlling interest
in che supply could force these short
sellers to buy any price they chose to
] E~ P,,% fo,. this x,nc% opoo11nf of c,,aor,-
lation in grain the successful operation
Of a corner would be much more diff
ficult and tedious Of accomplishment as
the holders of the article would have
only the consumption demand to depend
on. .H
The successful development and ter
mination of q corner requires the ut
most caution and fineness on the part of
its operators. In it's earlier stages the
fact of its existence must not be suspec-
ted by the generality of Spectators,
and especially by the shorts. AS quiet
ly as possible, the article to be cornered
must be gathered in through so many
channels that no one will know that it
is not purchased by a hundred speculat-
ors in the secret. This is done by en-
ploying a large number of brokers, who
are supposed to be agents for as many
different parties. Gradually the crowd
will begin to suspect the true condition
of affairs, and if the corner is not well
matured its operators must boldly pay
whatever price they must to make their
position secure. By this time the
shorts have become thoroughly fright
ened, and attempt to purchase the
amounts necessary to fill their con.
tracts. But there Is none of the
article for sale, and every time they ask
for it the price goes up o notch or two
They grow frantic, and, fearful of great
loss should they delay much longer, bic
wildly for the article, which steadily in:
creases in value, though hardly a trad,
is made. The small shorts are soon dis,
posed of. They have managed to fill
their contracts, at a great sacrifice, ant
are out of the deal. But the game nov
left for the corner to catch is more OBJ
%stinate, and it Is only by establishing
fabulous values, like so cents a bushe
for corn, for instance, that it can compe
rich and powerful spectators to sue
cumb to it.
, The corner is the natural enemy o
the short seller, and has ademoralizinI
effect on speculation generally. And
is more of IN Inconvenience to the Gus
Toner than an aid to the producer, 70
the reason that it affects the forme
class instantly, while the latter, subjec
to the action of middlemen, who, awar
. of the ca~priciousness of such a market
are obliged to protect themselves by es
tablishing a wide margin, which leave
, the producer but little benefited.