Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-15
Cash Price in Advance of the Future
Options.
PROSPECT OF CORNER IN CHICAGO
Armour and Letter on Opposite
Sides of Market.
CARGOES PILING Up THERE

CHICAGO, December l5-wiluam T.
Baker, president of the board of trade,
says. with reference to the unusual conii-
1ons in wheat:
cash wheat is at a premium over future
delivery here and in all parts OF the world
because more of II has been sold than can
be delivered. Wheat Is scarce all over
the world Not enough was grown last
year to supply the demand America now
has the opportunity to make Its own price
for wheat. 1t has in the past been con-
sidered by many to be a blessing for Us to
supply the world With cheap wheat, even
though our own farmers hardly could make
10th ends meet on the cost of production.
Now, perhaps, In view of the prosperity
which has come TO this nation from higher
prices there will be less sympathy for
those operating to depress grain values be-
low the values normally adjusted 10y de-
mand and supply.
Wanted by Consumers.
I'm the past, unlimited quantities Of
wheat have been sold on the market and
resold with no demand for its delivery,
Now, however. the wheat is wanted so
badly by consumers that contracts calling
for delivery can stand for no wind wheat.
We shall probably see the same tight con-
ditlons In May wheat, when Ma comes,
as we now see in December wheat
Il think that this country already has
exported much of the wheat which IT Will
soon need for its own consumption, and
that the full scarcity is not by any means
yet appreciated"
The Tribune says today: There are lust
seventeen days left to make or unmake
the December wheat deal. The chances tor
fireWOrlxS oil
scarcely SO bright as they were some time
ago. Letter as learning something about
the possibilities Of Chicago as a receiving
market and about the resources of Armour
lr the last two days the local stock of
wheat has been increased by 1.35o0oD bush
els Such n movement is simply Dhenom-
enai ard represents a part of the energetic
campaign made by Armour and Weare.
The last cargoes of an abnormal Duluth
Chicago movement, aggregating 3,Gl5.sU
bushels, are arriving.
Letter Importing Wheat.
The bulk Of this has been contract wheat
brought down for the special benefit OF the
market made by Mr.. Letter. IL has been
variousy disposed of. Part OF 1t has gone
into the public elevators and part into pri-
vate houses. Armour knows just how
much contract wheat is here. Letter would
give A snug sum for exact Information as
TO how much Of the Chicago stock has
come here to fill short sales to him and
how much is here TO be dumped out on De-
cember advances, such those OF last
Friday and last Monday.
The chance of pyrotechnics is In the
speculative market for December wheat.
The real battle is in the cash property.
Letter has been holding a large assortment
of speculative car is, and has been playing
them rapidly. He has brought the deal up
from July to September and from Septem-
ber to December, but only recently has
been pushing prices to a point to bring
wheat from all directions.
Prospect of Corner.
During the last few days the trade gen.
orally has been working around to the
ory, something like this:
Armour ard Letter have crossed weapons
and recognized their respective points of
advantage and strength. Letter will ham
die the December deal as carefully
possible and realize just much pront
by sales as the market will stand. lie
v ill then take sorne cash wheat on deliv-
cry but practically leave the cash situation
to Armour. He can go over to May with
better prospects than he went over into
September or over into December.
Armour will then be left with Chicago
in control of the cash situation and with
foreign demand and domestic requirements
as a result of millers selling their stocks
on the high Chicago premiums. This
would furnish a basis for advancing prices
and give Armour opportunity for mer-
wheat on a scale which was not
thought possible at the beginning of the