The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-06-16

| obtained This left only thin veneer
| of grain over large bins of atmosphere
| as collateral for the money borrowed.
| The resulting disclosures had the effect
of throwing further safeguards around
the warehouse receipts for grain and
these apparently proved sufficient to
last for score Of years. In the latest
case, wherein the GouldSage interests
| lost money, it appears that collision be-
tween Interested parties and officials
| was necessary, but despite this collision
| the matter could not be successfully
| hidden for an indefinite period. The
| holders Of the warehouse receipts, too,
can lose nothing, as the warehouse prop
| erty necessarily involved, the bonds and
| other securities given to provide against
such contingencies, are ample to protect
| all holders.
! The fact that grain does not pay
dividend at any stage of it's movement,
| but is an expense account instead, has
J led to novel methods on the part OF
| Spectators to make the grain pay trlb-
ute. These methods have grown out OF
the fact that the bulk of grain necessa-
ry to be moved is so vast that insurance
against loss by fluctuations in It's mar
ket value while it is in transit is desira-
BILE. To secure this protection the grain
exporter has adopted the plan of making
sales for future delivery as hedge
against a decline in the value Of the
grain while it is on the way to the for
eigner who will pay for 1t. This plan
| usually works admirably, the only eX-
ceptions being when unnatural manipu-
lation in one market acts unnaturally
against another. thus throwing all cal
culations out of gear AS an lllustra-
ton of the method commonly employed
it is presumed that a grain exporter at
Minneapolis ships in April quantity OF
wheat that under ordinary circumstan-
ces will reach Liverpool in the latter
part of May. If the foreign buyer mas
not yet accepted the grain, the Mime
apolis man will Immediately sell SINH
lar quantity of wheat for May delivery
in the Chicago market. Under natu-
raj order of things Chicago and Liver
pool will go up and down together, the
market, weather and crop influences OF
the world playing upon each alike. In
this case the Minneapolis man will lose
on the case grain in transit If the price
goes down, but he will have made
similar amount on the grain sold in Chi
cago for future delivery. When the
wheat arrives at Liverpool and is ac-
cepted the broker at Chicago is advised
to bpy back the May wheat sold and
credit the difference, less commissions,
to the account of the exporter In case
of an advance in the wheat on the way
the foreigner Will pay higher price ON
it's 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 II
the money available for moving it is
limited and the consumer shows a dis
position to delay his purchases, In or
der to secure at as early moment as
possible the most accurate advices as to
crop conditions, probable demand, mon
etary conditions and all other influences
likely to play an important part in the
making of prices, the largest specula-
tors spend large sums and exercise the
greatest possible vigilance. A wide
grasp of the situation, coupled with
good judgment and executive ability
and ample capital, often secures to such
Spectator enormous profits. Even
with these however, slight mistake or
the overlooking of an apparently unim-
portant detail may lead to disastrous
loss. To the ordinary Spectator with
limited capital, ordinary ability and
moderate means of securing information
the result is in a vast majority of cases
more or less speedy failure. In fact, it
becomes to these what the gaming table
or the racetrack is to the smaller gam
bler-more or less ups and downs, until
the kitty" or the bookmaker has eaten
up the entire capital.
Nevertheless, in the Chicago specula-
tive market is the largest part of the
actual machinery by which the wheat is
moved from the producer to the con-
sumer Without it the probabilities are
that the expense of moving the grain
from one to the other would be greatly
increased Each necessary factor-un-
less he could protect his capital in the
open market--would be compelled to al
low himself a wider margin Of profit on
his part of the work, to insure himself
against losses. BY the time the wheat
had passed from the initial to the ter
minal elevator or warehouse in this
country alone the aggregate charges
would be enormous. BY the time the
grain had travelled from producing
point to final destination, with the inev-
table and frequent accidents and de-
lays of such q long voyage, the bill
against the grain would be so large that
it would be practically wiped out, in so