Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-06-24
CORN KING PHILLIPS SCHEME.

CORN KING PHILLIPS SCHEME.
Having conducted his corn corner to
so successful a conclusion without turn
ing the country topsy-turvy or working
special injury to corn consumers, or
putting corn prices at unreasonable
levels, young Mr. George H. Phillips
comments on the general situation are
worth listening to as those of one of the
brightest and freshest intellects of the
day. He thinks that some plan for the
protection of the producers, the farm
ers, against the methods of the specula-
tors of the Chicago grain pit is neces-
sary for the best results all around in
which he is unquestionably right, al
though his plan of having the govern
ment undertake the work will be repug
nant to American ideas. The fact tina.
we already have class specially favor
ed by the government in the tariff pro
tected trusts is not an argument in fav-
or of but rather against the extension
of the system of government protection
Of special private interests.
However, there is no danger of the
government falling into the error Of pro-
tecting the impecunious farmers as the
trusts are now protected, for obvious
reasons.
But Mr.. Phillips has little to say of
his plan for government warehouses of
which he first talked. He still believes,
however, that corn bank, capital $780,
100000, and grain company to build
elevators to store the corn collateral to
be not only feasible, but actual institu-
lions of the not distant future.
These may be feasible, but hardly
would bank be solid if run on Mr..
Phillips assumption that corn, if held
long enough, will always sell for at
least 40 cents bushel in the Chicago
market. Underlying the whole pro-
ject,' he says, sis the fact that must
have become apparent to all thought
full observers of the markets, that corn
is worth 40 cents a bushel."
Mr.. Phillips can't see any price for
corn lower than 40 cents a bushal,
which is the one point on which his
lack of experience is in evidence "Wky
does not the market break to 35?" he
asks. Because corn is worth more
Than that entirely apart from any spec
ulative value" And he goes on to ar
que that corn is worth so to so cents a
bushel to feed and demands to know:
IF this condition prevails at the end Of
six seasons of big crops, and the de-
mand is constantly increasing, what
basis is there for the argument that 40
cents is an artificial price for corn?"
AS wise contemporary living at the
mouth of the Chicago grain pit re-
marks, financial operations based on
such reasoning are liable to come to
grief Corn may be worth so or even
so cents to feed when it cannot be had
for less. But it cannot I'D maintained
at 40 cents or any other given price in
Chicago or elsewhere merely because
Mr.. Phillips or someone else thinks it
ought to be as much as that If there
Is more profit in growing corn at 40
cents, Chicago basis, than in growing
other crops at current prices, more corn
will be grown and the accumulations
will swamp any scheme to maintain
sucn minimum price
The probability is that Mr.. Phillips
himself, really suspects as much else he
would not look finally to the govern
ment for support of his scheme, as he
does in advocating government subsidy
to shipping to carry off any surplus corn
that may accumulate and find markets
for it abroad. In case this expedient
failed however. Mr.. Philips $4,000 900
corn bank would collapse like a bubble.
The permanent enterprise that can't
stand on its own bottom and must for
ever look to the government for support
to tide over probable contingencies is
not good one to take stock in.
The Philadelphia franchise grabbers