Evening star., 1909-04-11
WHEAT'S HIGH FLIGHT
Phases of Sensational Market
at Chicago.
PATTEN IN THE PUBLIC EYE
Engineers Biggest Deal of Many
Years. ...
HIGHEST PRICE SINCE 1898
Who Are the "Shorts" That Have
PATTEN IN THE PUBLIC EYE
HIGHEST PRICE SINCE 1898
Who Are the 'Shorts" That Have
;;
Been Caught Napping-Fore-
castings of the Trade.

CHICAGO. April 1o.-May wheat
crossed the S1.25 mark this week. and
for a few minutes today touched
sl312. Last September, when the
wheat was being rushed to market as
though there would never be another
chance to sell it at 81 bushel or close
to that figure, the trade thought James
A. Patten a foolish man to buy wheat
for May at 81 to s1O4 and to predict
that wheat would be scarce and sell at
S125 for May delivery.
Now that wheat has been sold freely
at S125 and Patten has been forced to
sell nearly 100000 bushels between
S1.2o and the top price to keep the
market from running wild under the
bear covering, traders have come To
the conclusion that Patten is shrewd
forecaster of trade and crop conditions,
and are willing to follow him to n
greater extent
Meantime the question, who are short
the large lines of wheat? is puzzle to
the trade, and even Patten has been
unable to satisfactorily locate the sell
ers New Workers. and foreigners with
long bank accounts have contributed TO
the Patten fund 1t has also been the
gossip, ever since the Sidney Love fall
ure. that a certain gilded youth of New
York, an intimate of Love. was snort
100000 bushels. but there has been no
positive evidence brought out to con-
firm this.
Northwestern hedgers and foreigners
have had some wheat sold. and elevator
men with cash wheat on hand nave
sold 1t to the Patten interest on the be-
lief that the hedge would eventually
win out. Traders have sold short. con-
sdering the price rather than condi-
tions the world over. and are now SELL
ing July at 13 cents under May and
September at % cents under May Tor
the same reasons and hope to scare the
bulls into unloading and forcing de-
cline.
An Evolution in Values.
1t is the belief of many people here who
have studied the wheat situation closely.
as applied to the worlds markets, that
there has been an evolution in values. and
that it is useless to look for low prices
for wheat until there is a burdensome
surplus. May wheat in Buenos Aires is
only cents under May in Chicago, and
nearly cents discount from the price
of cash wheat in Liverpool. while there
is a freight rate of ~ cents to Liver
pool
Those who are bearish look upon the
high prices as due to manipulation; but
taking this phase of the market in a
bination of men is strong or active
enough to control the markets of the
world? 1t would be impossible for a
combination of bullish interests to work
in conjunction with each other for any
length OF time as there is too great a
territory to be covered SO it must be
admitted that the bulls are right in their
position and should be given credit for
it.
Seasons Later Market.
Indications are that the July wheat will
oe an 'old crop future" this year. In
case there is large amount of cash
wheat delivered to the Pattens in May,
and they move out the stocks. 1t is be-
lieved that supplies here will be light
at the end of July, and will remain so
throughout the following two months, SO
in a position where any strong interest
might take hold of the market and make
a sharp advance. Then the buyer of
September wheat has the advantage OF
any crop damage that might come to the
winter and spring wheat crop.
Wheat has not been as high as S1.2s
since April. 1S9S. when it sold at $1.2;
under Letters operation and sold the last
of May at s1.25 to $40. July at its
highest was $1.25, made at the same time
and September only reached 95 cents
while this week July touched $1.12H and
September $1.O4as.
One Big Dealers Views.
One of the largest cash handlers o1
grain in the northwest, in discussing the
situation, said: 1T was predicted early
in the season that May wheat would sell
at $1.25. Now that this price has been
reached 1t remains to be seen how the
trade will take the cash wheat. II 1t Is
absorbed readily and stocks decrease
prices may go higher. 1t Is now an
nSitinn cd nttf
1T is certain that the trade will be in the
same position regarding supplies at the
end of this crop year as they were last
and that the mills will be bare of wheat
and have little flour, so that they will
take the early run Of wheat for home
consumption, SO that even though prices
may be high, and all indications po.nt
that way, the chances for large receipts
at terminal points in July will be below
the average"
The Man Of the Hour.
James A Patten Is the man of the
hour in this market and all over the
agricultural regions. He is talked about
at the corner groceries. The women
talk about him over the telephone to their
neighbors. they tell of him at the country
blacksmith shops or wherever there is
gathering OF farmers.
He has give us high prices for
wheat corn and oats. and we are with
him." they say The coming generation OF
farmers boys will be named James Pat
ten Jones or James Patten Olsen. He is
talked about more than President Taft
The way the corner gossips put 1t Is
that they admire the big, honest man who
invests his money in their grain, and
supports prices when he believes they are
worth the money, and does not hesitate
to say that he is dong il and tell the
reason.
Patten is often asked What are your
methods of speculating? How is 1t that
YOU make such a success of your oper-
ations?" His reply Is. There is nothing
10 speculation but common-sense study
of the conditions and actions upon them