The times. [volume] (Richmond, Va.) 1890-1903, 1899-07-29
SATURDAY. JULY % 1893,
FUTURES ANp FLUCTUATIONS.

In Yesterdays issue we had an article
on the relation OF pig iron 10 prosperity
as viewed By the president of the Ancri-
can Pig Iron STORAGE Warrant company
IN which Mr.. Hull pointed out the enor-
NOUS rise that always occurs On the price
OF pig iron when over there is more
than normal demand for st. Tho reason
OF the sudden rise in price IS that the
Visible supply f. never more than TWEEN
ty-tnree DAYS. and while that margin Is
amply sufficient for the years i'm which
tho calamity bowler is stalking unhin-
dered through tho land. yet when the
wheels OF trade and manufacture begin
20 revolve az their normal speed once
more. the twenty-three days surplus
supply melts like snow drop I'm blast
furnace. There comes a feeling Of uneas-
tness to all who use iron, lest there
should not be enough 10 go around, this
feeling causes every man TO try 90 get
iron for himself. and I'm the scramble
tnat cnsues the price is often put up 80
high that # ceases to be possible for the
manufacturer, who uses pig iron, 20 get
q at a price which viii enable him 20
make a living profit. OF course, the et-
feet OF a stimulated demand S. 20 give
an increased production which I'm turn
tends to bring back 60 its normal level
the price OF the article produced. But
an iron furnace cannot Doe built and put
in operation in week or month. And
20 Il happens that before the production
becomes large enough 20 supply the de-
mand. some manufacturers have had TO
80 out Of work and thereby the amount
OF wages has been decreased and the
cry Of hard times SIS upon the coun-
Try with all Of its attendant train OF
lost confidence and failures.
Obviously the same phenomenon takes
place IN all other great staples. VINO
does not know Of his own experience Of
great rises In wheat Tor example, as last
year. or cotton, or pork? And why do
not the fluctuations in those articles
cause the same distress as in the case
Of iron? A man cannot live without
bread and meat. nor can he Doe clothed
in this day without cotton. and yet a
suddenly increased price for any of
these products does not disarrange our
whole commercial fabric.
The reason IS that the above named
staples Of commerce are bought and sold
on exchanges for future delivery. The
history Of the wheat market leads to the
inevitable conclusion that in the absence
al an absolute loss OF crops or a whole
sale war. the price Of wheat IS too high
al two dollars a bushel. Therefore.
when wheat gets 90 two dollars bushel
thousands OF men come forward and offer
10 sell wheat al that price. The result
Of these offers 90 sell IS 20 put down the
price 20 a level which the consensus of
opinion. based on experience. has cstab-
llshed as the proper price under mo
then existing conditions. with the low
ering or price the manufacturer and
all those who use wheat are enabled 20
supply themselves az reasonable terms
for future delivery and their business is
not hampered or ruined, as the case may
be. by famine prices.
Conversely. when the crops have been
exceptionally large and the markets are
gluttcd with an oyer-supply. the OBJ
,ious tendency Of prices is to 80 down.
but here also the common observation
Of mankind teaches that there Will come
a time when wheat Will Doe higher. there
rore men come into the market and
buy intending 10 hold for future day.
with this access Of purchasing comes
an Increase Of price and the farmer or
producer Is saved fearful loss.
In both cases the stability Of business
Is protected by the offers made by re-
sponsiD.e parties 10 supply me desired
article ~ a future time. OF pay the dif.
ference IN value.
How Is this end accomplished? BY
storing the OIL wheat. &c. and issuing
an order against g. which order can be
sold and transferred from hand 10 hand.
The effect Of this facilitated means OF
exchange - TO enable a great surplus OF
these articles 20 be carried on hand
without Cutting the market, and thereby
a reservoir Is created Oh which the coun-
sry asr draw In case OF increased need