The times. [volume] (Richmond, Va.) 1890-1903, 1895-07-17


who goes upon the Grain Exchange ana
buys the wheat at public auction. Inc
broker from whom ne buys IL gives MN
n written contract that he VIII oeh'er
him 10000 bushels OF wheat on Septem-
her ist. and he also gives him five cents
for each bushel Of the 1900. or s"o as
security that ne will perform the con-
tract, and he agrees that he VIII always
keep this cash deposit equal to hvc cents
over the market price OF wheat. The
buving broker puts up the same also.
IL the broker who sold the wheat re-
mains solycn. Until September LIST, the
purchaser can call on him at that Tune
for the wheat and he will have 10 deliver
II. If he fails IN the meantime, that faii-
ure is at once announced on the STOCK
Exchange. and all his contracts are sofa
on the Exchange at public auction. TDe
broker who bought the 1000 bushels al
once buys 1000 bushels from another
broker and uses the 500 that the nrst
broker put up in cash to cover any rise
In the price Of wheat that may have
taken place in the meantime The pal
ance Of this 500 is then turned over 20
the assignee Of the broker who has failed.
The second seller then gives the buying
broker his written contract TO deliver him
1000 bushels Of wheat on September 49,
and be Likewise puts up FIVE cents a bushel
As security that he viii perform his con-
tract. The substance Of the transaction,
then, Is shat the purchaser Of wheat
has acquired a right 10 have 1000 bushels
OF wheat delivered to him on September
LIST. and he has got security that the con-
tract will be performed. When Septem-
her lst comes, II he has not in the mean
time sold his contract. he calls on the
broker who sold the wheat 10 deliver II,
and that broker delivers him an Elevator
Certificate for 1000 bushels of wheat,
which he can go and take from the ele-
vator. In the case Of cotton and provis-
ions. warehouse receipts are delivered
which viii bring cotton or provisions on
demand.
Now. this is a most useful Invention
in business for millers and for all per-
sons who have 10 buy grain or cotton or
provisions. The miller gets an idea OF
how much wheat he will want In Sep
TENDER. the cotton spinner Of how much
cotton, the meat dealer Of how much
meat. They have reason TO believe that
wheat. cotton. or meat will be higher
when September comes, than it is now
thought they will be. and they exercise
their judgment and buy for September
delivery. according to the price that the
public now thinks the article viii be at
these All milers and cotton spinners
and dealers in farm products are making
these contracts every day on the eX-
changes and they find them indispensa-
BILE TO their business. Not only so, but
they are of the utmost importance 10
the farmer. II there were none Of these
exchanges the farmer would have to
hold his product until the selling time
comes. all would then be rushing TO the
market to sell az the same time, the
market would be glutted, and the price
beaten down far below what it ought TO
be. But this invention OF business keeps
buyers and sellers using their best judg-
rent-some upon reliable Information ana
with good sense. others merely guessing,
and so gamblir gall through the
year on what the price OF the pro-
duct will be when the selling time comes.
They are all the time buying and SELL
ing in the int,rval. and the crop is prac-
tically marketed by the time it is gath
cred. and il has been marketed easily
and without pressure, through the whole
period of the year. instead of being
thrown all on the market at one mo-
mcnt.
Now it is true that many men are at
all hours resortirg TO these transactions
without having mills 10 grind wheat, or
cotton factories 10 use cotton, or meat
warehouses TO store meat They arc
simply buying these things in the hope
that they may rise. and that sales may
be made at a profit. They are doing
this without information. and without
judgment. ami their conduct is therefore
reckless ana foolish in the extreme.
| But the contracts themselves are blame
less contracts in their nature. ard Of the
very greatest benefit to business Is bus
| mess TO be deprived of this invaluable
! machinery because some men, who are
free agents. peryort the machinery ana
Sc ii recklessly and foolishly anc FOR tnei'
own injury? This cannot be. There Is
10 business whatever that is not liable
to be abused. But in such cases we
must not destroy valuable processes.
! because fools make improper use of
them. Men are free agents, and they
have the right TO buy and sell without
information and judgment II they choose
to do So All we can DO is to regret that
they should be so foolish and leave them
to their fate. But we cannot give no
! our machinery Of business because some
foolish men choose TO thrust their hands
into the cog-wheels to have them man
! gled and torn off.
! THE ADOLF ZIONIST AND THE NEGRO.
Mr.. Eugene l. Didcr has contributed
to the Globe Quarterly Review. OF Nov
York. am article entitled The Negro IN
Fact and Fiction" Mr.. pidicr is OF
! -.