The Washington herald., 1909-04-18

over the newspaper dispatches from Chi
cago last week, and to all the world went
the news. In every grain market on the
globe the bulge" in the Chicago market
was instantly reflected, for the Chicago
pit makes the price OF wheat the world
over.
Chicago doesn't make the price OF
wheat because. as many people believe.
the pit in la sale street, the scene Of
many a stirring speculative drama. gath
ars together a horde OF rich. rash pung-
ers who make prices go up or down by
sheer force of money. Nor does the Chi
cago pit make the price because any con-
siderable part of the actual wheat crop
OF the country Is handled in Chicago.
Nor does the pit make the price because
The United States raises the bulk Of the
worlds crop. says a writer in the Phila-
6elphia Public Ledger.
The wheat pit. where fortunes are made
and lost by daring speculators. makes
prices for the world because the pit IS the
clearing house Of the worlds opinion Of
the production and consumption Of wheat.
AL the worlds knowledge of the wheat
trade, from the Dakotas 10 Argentina.
from the Red River TO the Danube. from
Manitoba 10 India. Is focused in the Chi
cago wheat pit. The telegraph wires carry
Instantly 10 Chicago news and rumOrs of
monsoons In India, rain In Kansas. frost
IN Minnesota. war clouds In the Balkans,
drought in Argentina. failures in Liver
pool. black rust in RusSia-every bit Of
information that may effect the price Of
wheat. Chicago knows from day 10 day
the weather in every wheat-prOdUcing
country on the globe. the shipments from
every seaport and inland distributing
point the receipts and deliveries by the
railroads. lake boats and ocean steamers,
the receipts AT elevators and -four mills.
Chicago knows just how many acres are
sown 70 wheat in every county of the
United States and every country in the
world. and knows. besides. from day 20
day, IN the season. just how this wheat IS
growing and what its promise is for the
harvest No factor that can have any
bearing on prices to-day. tomorrow. or
next year is overlooked.
'HOw Are the Crops."
The wheat pit focuses this knowledge
not only for the specuIators in the com
modify. but for the world Of industry
and commerce. Early in the sLring the
country begins TO ask, How are the
orops?' Our prosperity during the twelve
months following the harvest depends. IN
a very large measure, on the answer OF
this question our OF the ground comes
our wealth. In these years of abundant
prosperity the farmer takes from the
earth each harvest season products Of a
value OF S4O0G. 600. and more than a
third of this enormous sum represents the
two great crops OF the West-corn and
wheat
The question, How are the crops2''
becomes each year. therefore. as the har-
vest time approaches, one OF vital impor-
tance. and the earlier the knowledge Of I
the size and quality Of the crops the
more valuable fl is TO the commercial
community Railway men need 70 know
in advance the outcome OF the harvest, I
that they may prepare for the transporta- J
lion Of the crops 20 the markets. Bumper
corn means big tonnage. not only Of
products from the farms 70 the con
suDners. but also of merchandise from the
manufacturing towns 10 the farms, /
bought by the farmers with their produce /
When railway men are assured OF big
crops they spend millions Of dollars for
new locomotives and cars and rails and
many millions more for the improvement
Of their roadbeds and the extension Of
their lines into new territory. The steel I
makers are Jointly interested with the
railway men in the harvest. for half of
the enormous product Of the steel mills
of this country is purchased by the rail (
Ways. When the crops fail the railways
cancel their orders for rails and bridges (
and equipment. and steel descends from
prince 10 pauper-
Early knowledge Important.
Then all the big manufacturers Of the
country. whether Of wagons or plows. Of
shoes or clothing. must know whether
their great customer. the farmer. IS 10
have money to spend from harvest 20
harvest. So II is with the merchants al
through the agricultural country. Even
more important is early knowledge Of the I
crop prospects to the bankers. who must /
net only finance the movement Of the
crops 20 market, but must also know
whether the harvest IS TO cause expan-
sion or contraction OF capital ventures !
through the country. Then there are the |
-four millers and elevator owners. who /
are directly interested in the marketing I
Of the crors.
Finally there IS the great body Of men
who speculate in the rise and fan in 4
commodity prices and who risk many !
their opinions as 70 the volume Of the 4
crops and the demand for them in the 4
grain markets Of the world
The big speculation IN wheat results 1
from the fact that no one knows frcm 4
year to year what the outcome of the !
harvest viii be or whether prices will 20 I
up or down. But men Of fnteUi igence. fore /
sight, and daring can make use of all 4
the news that comes to hand from day 10 /
day and forecast prices. When their 1
forecasts are sound they have the op- 1
portunity Of making great fortunes When 1
their forecasts are wrong or when they
attempt 70 obstTUct the natural laws Of I
supply and demand they invite ruin, and 4
many man has been rained in the 1
wheat pit
Speculation as Science.
The great wheat spectators. like Ar
nrour or Jim" Patten, who has run the 4
big campaign this year in May wheat, 4
are successful because they make spec
ulation a science. Patten looked the
ground over last fau, when May was
around 90 cents. and, after studying all
the known factors, concluded that wheat /
must rise through the winter lie took
MS position. fought day after day in the
pit against men Of wit, as daring and as
intelligent as himself. and followed the
market up as the factors that he had /
foreseen cana 70 have their effect on
prices Now he Is many hundreds Of
thousands Of dollars ahead. not because
he has run a corner" or has put up
prices artifcally. but because he has
foreseen conditions accurately.
Patten, Armour, and other big wheat
Spectators plan their campaign in
large measure on the estimates made Of
the size OF the forthcoming world har-