New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-10

laton In one market acts unnaturally against
another, thus throwing all calculations out OF
gear. AS illustration Of the method COM
monty employed it is presumed that grain
exporter at Minneapolis ships IN Aprll a quan-
tity of wheat that under ordinary clrcull-
stances will reach Liverpool IN the latter part
of May. If the foreign buyer has not yet &C
cepted the grain, the Minneapolis man VIII I'M
mediately sell similar quantity of wheat for
May delivery in the Chicago market onoer a
natural order of things Chicago ana LlVerpooi
| Will go up and down togetner, the lnarhet'
weather and crop influences OF the world play
| ing upon each alike. In TINS case the MINT 9
apolis man will lose on the cash grain IN transit
| if the price goes down. but he VIII have MADE
a similar amount on the grain sold IN chicago
! for future delivery. When the wheat arrives
at Liverpool and is accepted, the broker at chi
| cago is advised to buy back the May wheat sold
! and credit the difference, less commissions to
! the account Of the exporter. In case OF an ad-
/ vance in the wheat the way the foreigner
will pay a higher price on its arrival, and the
! Chicago broker will buy back the May wheat
| at loss.
| In times when the crop movement is at it's
| height the pressure of the grain on the market
! is great. particularly if the money available
| for moving it is limited and the consumer shows
| a disposition delay his purchases. In order
to secure at as early moment as posspe the
most accurate advices crop conditions.
| probable demand. monetary conditions and all
other influences likely TO play an important part
| in the making of prices, the largest spectators
| spend large sums and exercise the greatest pos
sible vigilance wide grasp of the situation,
| coupled with good judgment and executive abfl-
| ity and ample capital. often secures to such
| Spectator enormous profits. Even with these,
| however, a slight mistake the overlooking
| of an apparently unimportant detail may lead
| to a disastrous loss To the ordinary specu-
| lator with limited capital, ordinary ability and
| moderate means of securing information the
! result is in vast majority of cases more or
| what the gaming table or the racetrack is to
the smaller gambler-more or less ups and
| downs until the kitty" or the bookmaker has
| eaten up the entire capital.
| Nevertheless. in the Chicago speculative mar
| ket is the largest part Of the actual machinery
| by which the wheat is moved from the producer
| to the consumer. Without it the probabilities
| are that the expense of moving the grain from
| one to the other would be greatly increased
| Each necessary factor-unless he could protect
| his capital in the open market-woud be COM
| PEELED to allow himself a wider margin OF profit
on his part Of the work. insure himself against
losses BY the time the wheat had passed from
| house in this country alone the aggregate
| charges would be enormous. By the time the
| final destination. with the inevitable and fire.
quent accidents and delays OF such a long voy-
age, the bill against the grain would be large
that 1t would be practically wiped out in so far
the hands of the shipper termnal-as for
matter 10 bill the grain through to Liverpool
on a single bill of ladng. which any OF the
transport companies is willing to issue in order
TO secure the business. Each OF the trunk lines.
by means Of reciprocal traffic arrangements
with the ocean lines, issues such bills of ladng,
and the Chicago or Duluth shipper can draw
against it for the funds necessary TO carry
on further business OF similar sort.
The physical movements of the grain show
number of landings and the employment of a
large amount of labor before it reaches its des-
tination. These usually about as follows:
1t is hauled by wagon from the farmers granary
o. direct from the threshing machine to the
country elevator al the way station and dumped
into the elevator bin. Thence ii is elevated o
other bins. where it be loaded on cars for
the terminal elevators. In some Of the country
elevators the same power used elevate the
grain Is also often used TO give the grain a pre-
Hminary cleaning to rid ii Of any loose dirt and
other impurities. After being inspected by State
off1clals il Is switched to the terminal elevators
or cleaning and mixing houses. where il is pre-
pared Tor Its reception in the bin In the 'rcgu-
lar or duly approved elevator. where ware
mouse receipt can be issued to represent II.
From here il is loaded into cars If in the win
ter. or into boats, if in the summer season and
II goes to the transfer elevator at the seabOard
where il is loaded into vessels for Europe. It
is weighed, Of course. at various points along
the route. and the interested parties keep out
samples in duplicate. If the grain goes to the
seaboard by lake and rail. has been the rule
"A number of routes. 1t can go to New York via
Buffalo, to Philadelphia via Erie or TO Balti-
more via Fairport. Another route is to New
England ports via Ogdensburg. and the shortest
of all is The Canadian route by way of the
lakes to Depot Harbor. and thence by rail to
Montreal. where il takes the ocean vessels.
Its financial destines follows The
country elevator man, who may or may not be
an agent of any of the large elevator or receiv-
ing firms at the terminal points. pays the farmer
cash for II. When he ships 1t TO the terminal
for something near the market value OF the
grain on the day of shipment. After the grain
Is loaded in vessels 1t is not usual for the ship
per to make a draft aEainSt the bill ladipR
unless the grain is sold for delivery at sea
board port, until the grain clears the seaboard
When drawing the foreign buyer the follow
ing documents must accompany the draft: Bill
of ladine at Chicago or other point Of shipment
official State inspection certificate showing
grade of grain, and the marine certificate of
insurance, if shipped by lake.