The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-11


dend at any stage OF its movement, but
is an expense account instead, has led to
novel methods on the part of spectators
to make the grain pay tribute. These
methods have grown out of the fact that
the bulk of grain necessary TO be moved
is go vast that insurance against loss by
fluctuations In its market value while 1t
is in transit is desirable. To secure this
protection the grain exporter has adopted
the plan OF making sales for future de-
livery as a hedge against decline in
the value of the grain while it is on the
way to the foreigner who will pay for 1t.
II the foreign buyer las not yet accepted
the grain, the Minneapolis man will imme-
diately sell a similar quantity OF wheat for
May delivery in the Chicago market. Under
a natural order of things Chicago and Liv-
erpool will go up and down together. the
market, weather and crop .nflue!.ces of the
world playing upon each alike. 70 this case
the Minneapolis man will lose on the cash
grain in transit If the price gees down, but
he will have made similar amount on the
grain sold in Chicago for future delivery.
When the wheat arrives at Liverpool and is
accepted. the broker at Chicago 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 OF the way the for
eigner will pay higher price on its ar
rival. and the Chicago broker viii buy back
the May wheat at loss.
In times when the crop movement is at
its 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 TO
delay his purchases. In order TO secure
at as early a moment as possible the most
accurate advices as to crop conditions,
probable demand monetary conditions,
and all other influences likely to play an
important part in the making CT prices,
the largest spectators spend large sums
and exercise the greatest possible Wig
ilance. 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 a disastrous
loss. To the ordinary Spectator with
limited capital, ordinary ability, and mod
crate means of securing Information the
result is. in vast majority of cases. more
or less speedy failure. In fact IL becomes
to these 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.
Its Financial Destinics.
Nevertheless, in the Chicago speculative
markets is the largest part of the actual
machinery By which the wheat is moved
from the producer to the consumer. With
out it the probabilities are that the ex-
he.
the other would be greatly increased Each
necessary factor-unless he could protect
his capital in the open market-would be
compelled to allow himself wider margin
of profit on his part of the work. to insure
himself against losses By the time the
wheat has passed from the initial to the
terminal elevator or warehouse in this
country alone the aggregate charges would
be enormous. By the time the grain had
from producing point to final des-
tination. with the inevitable and frequent
accidents and delays Of such a long voyage,
the bill against the grain would be SO large
that it would be practically wiped out. in SO
far as the growers profit is concerned.
Once In the hands of the shipper at ter
minal-as, for instance. Chicago or Du
luth-it is simple matter to bill the
grain through to Liverpool on single bill
of lading, which any Of the transport COM
panies 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
leading and the Chicago or Duluth shipper
can draw against it for the funds neces-
sary to carry on further business Of SINH
lar sort.
The physical movements of the grain
her If ban ha
ployment of a large amount OF labor be-
fore ii reaches its destination. These are
usually about as follows: II is hauled by
wagon from the farmers granary or direct
from the threshing machine to the coun-
try elevator at the way station and dump
ed into the elevator bin. Thence it is
elevated to other bins. where 1t can be
loaded on cars for the terminal elevators.
In some Of the country elevators the same
power used to elevate the grain is often
used TO give the grain preliminary clean
ing to rid il of any loose dirt and her
impurities. After being inspected by State
officials ii is switched to the terminal ele-
vators or cleaning and mixing houses,
where it is prepared for its reception in
the bin in the regular" or duly approved
elevator where a warehouse receipt can
be issued to represent it, From here il is
loaded into cars, il in the winter. or into
boats If in the summer season; and IL goes
to tie transfer elevator at TIL, seaboard.
where il is loaded into vessels fer Europe
1t 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. as
has been the rule during the present sea-
son. ii has the choice of a number OF
route.
Its financial destinies are as follows: The
elevator man, who may or may not |
be an agent of any of the large elevator or
firms at the terminal points, pays |