The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-25
is AN Old SCHEME
American Society Of Equity's Plan
to Raise Wheat to 81 Not
Endorsed.
Traders Say Farmers Cannot In
duence Price by Holding Back
Their Grain.

If the American Society Of Equity should
succeed In raising the price Of wheat to
81 a bushel, no men in the grain trade
would be more highly elated than the
traders ira, In the pit at the Minneapolis
Chamber OF Commerce. This society will
send out tonight from the indianapolis
Headquarters circular addressed to farm :
ers giving exhaustive arguments as to
why the minimum price Of wheat SHOULD
be vi, and urging the farmers not to sell
until they can get that figure.
Grain men laugh at the suggestion that
this plan will raise wheat to 81 or adj
vance 1t to anywhere near that figure, yet
they do not pretend to combat the gem
eral force of the argument, and freely 7ad-
nit that the effect of sending Of bulle-
tins of this tenor to 100000 farmers can
not fail to have some stimulating effect.
But the idea that any number Of farmers
by holding back their wheat could main
tain the market on higher level for
any length Of time Is secuted. The
scheme is too big, too far-reaching and
involves too many elements to make it
practicable.
1t has not the merit of originality Many
times in the past such circulars have been
sent out broadcast. In a majority Of
cases no material results were obtained.
In one or two instances the effect was
quickly felt. Farmers held back their
wheat. This made the receipts lighter at
the big market, but it made the accumu :
lation In farmers hands all the bigger.
1T was a case of everyone holding back
by agreement and at the same time lay
ing awake, nights trying to figure out
how to get his wheat in first, in case the
other fellow began to ship. And when II
did begin to move in it came with a rush
and prices fell lower than ever.
When Charles A. Pillsbury lived he was
| usually a bull on wheat, and his opinions
| were sought the world over. One year
| when there was a scarcity in supplies over
the northwest, as there is this year, a
mysterious circular went out Of Mime
apolis to some thousands Of northwestern
| farmers. This was the famous Mutloch
circular, and hold your wheat was the
caption. Everyone jumped at the con-
clusion that Pillsbury was back Of 1t, but
he was not, and it finally transpired thai
Mutloch, who was an independent trader
had sent it out on his own responsibility.
The effect was bulIish for short time
and then came the Inevitable reaction.
"As the situation stands now, says ar
old trader, 1.-THE farmers Of the northwest
I are getting about soc for No. 1 northern
wheat in the Minneapolis market. There
is no old crop wheat to, speak of left il
! the northwest. If it were merely q case
of available supply against prospective
demand wheat would be at 81 right now
But there Is a big winter wheat crop II
prospect and harvesting will begin II
| two weeks in some parts Of Texas ans
from that time the work will move north
ward. Meanwhile the spring wheat al
over the northwest is very promising:
! ga calamity may come and cut doWr
| this prospect, in which case wheat woult
go to 81 quick, and whether the farmers
held their old wheat or sold it would GU
little figure. However much the price:
may jog around from day to day, it i
] all a. question OF supply and demand II
the long run. No combination Of farmers
can make any lasting bull market by hold,
| ing back their wheat =