The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-04-17
The GREAT WHEAT CORNER.

TIE GREAT WHEAT CORNER
II IS a curious fact Of human nature
that il Hiu stand cheerfuIIy almost any
imposition. bur that it rises fu wrath
when the cost Of bread advances 10 an
eztravasant price. The Patten wheat
corner I'D Chicago affords an exact
demonstrates in point The American
people have had The cost Of living pat
Up 20 the point q eKt0r1i0n BY trusts
and monopolies, they have paid eu0r-
NOUS. though indirect taxes. through
the tariff Tor the benefit Of the trusts.
they have seen clothing. food fuel. the
most Insignificant articles Of common
use, like thread. raised 20 the highest
figures ever known under modern COR
dtions- and they have stood u OH
cheeTfulIy. inl0rsire at the polls the
forces responsible for the increase
Now CONES a heavy increase ln tE5
price nr wheat. with q corresponding
increase in the cost Of bread. and q
whole nation IS ready 10 break out in
q riot against the supposed author ot
its troubles. the Chicago man who Hss
co11ered thu visible supply Of wheat IN
this country. A member OF congress
with mis- ear % the ground and ms
heart torn with sympathy for the COM
mon people. offers q bill 20 remedy
the situation. newspapers discuss the
corner as "a social crime bakers teIe-
sraph their congressmen 10 afford them
relief. and an uproar is started-al
because wheat has gone 20 a record
price.
Al the sisk OF being considered heart
less we venture 20 say thar the effort 10
stop by IeE station the operation % q
perfectly natural sequence OF facts is
as useless IS 10 would be % attempt
10 regulate the rise in the waters of the
Great salt Lake 10y legislation The
supply of wheat in the hands 0f farmers
and vareEousemen is smaller than II
has been for years. The crop outlook
in This country and elsewhere is bad
There is a heavy export demand and
that AT a time when American miIlers
cannot GET wheat enough at any price
% supply their own needs
BIr. Patten simply foresaw these con
dItions. and like any other Spectator
or business man. took advantage Ct
them. II he had been mistaken in his
estimates ne would have been wiped
out financially as it is. he is realizing
great profits from his purchases. made
tn anticipation Of the situation as it has
developed. There is nothing criminal
about such an operation. any more
than there would be in buying any
other commodity and making an the
profit possible out Of il
The men who Tx q stopping the
corner base their gctiou on the theory
that the buying and selling Of grain
on margins is gambling That is true.
but only partially true. Legitimate
business in grain and four is largely
based on the margin business. The
miller who sells 100 900 barrels Of -four
for future delivery. can. and often does.
buy wheat on margins against his fu-
ture operations IT is sound insurance
against speculative loss and equalizes
the risks Of legitimate business. Cam
bling Is possible under the system. and
good part NJ the dealings on tie Chi
cago board Of trade Is gambling pure
ard simple. but Il Is impossible "a
strike at the gambling feature withou,
Gripping the solid business related
80 Il.
Another thins: the public seems ta
assume that Patten is running nc risk
in his deal As matter OF fact he
has the fight Of a lifetime on his hands
On Thursday he was the object % a
bear attack which nearly knocked hin
out. and ne was compelled to buy mil
lions Of bushels of wheat which h5
did not want. in order 10 protect the
price Of what he had ia hand. II.
bought July wheat. and IT is CUES
tion whether. when July comes. he viii
not be swamped BIZ deliveries Of the &C.
teal wheat. he thinks it is safe pun.
chase. but there are men with millions
back of them who think he is wrong
and viii back their opinions with theh
millions The outcome depends alto.
gether upon the time the new crop ma
lures and can be shipped. and in thai
ues faLlcn lyIA4hc Ut ~" LllatI
II may be possible 20 minimize by
law the gambling feature Of gran op-
erations on margins; but il that is don'
il viii have 10 apply likewise TO stocl
dealing on Wall street. 10 cotton mar
kets. TO almost every form Of future
sales and purchases. And even II q
is done It win not stop the effect o
natural laws controlled BY supply anC