Judith Gap journal. [volume] (Judith Gap, Mont.) 1908-19??, 1909-10-15
THE SEPTEMBER WHEAT SQUEEZE.

Grain and stock market brokers are
insistent in their claims that any inter-
ference with the business, which they
assure us is altogether legitimate,
would react disatrOusly OH the coun-
try, particularly the growers of grain,
says the Great Falls Tribune. The
grain exchanges have been described
as the great regulating force in the
grain market, and we have been told
that dealing in futures resulted in 50
regulating prices that not only could
the farmer have more dependence on
the market, but that the consumers
of wheat would also be better
informed as to what they might expect
to pay. In other words that prices
wOuld be more regular all the year
round, rather than down when the
new crop first came in, and up when
it is about exhausted.
That is what these brokers tell us,
but there have been Il number of
experiences this year which show
how little there is in these claims.
Through a successful corner early in
the summer Mr.. Patten managed to
raise the price of wheat considerably
above the normal, and thereby made
for himself comfortable fortune;
as a result, every purchaser of wheat
was compelled to pay more for what
he consumed, and in many cities Of the
country the baker were compelled to
raise the price Of bread. 1t is true
that there would have been normal
increase in wheat prices along about
the same time, but they would not
have gone SO high had it not been for
the corner.
Practically speaking, the farmers of
the country got no good whatever
from these increased prices. They
only deal in real wheat, and if they
have no real wheat for sale-which
very few of them had at that time
there was no profit. AS mattar of
fact very little real wheat exchanged
hands as a result Of the increase in
price and the big settlements between
brokers. The whole thing was largely
a gamble in which certain brokers
and other agreed to deliver wheat to
Mr.. Patten at such a price, and when
the price went up they paid him the
difference between the amount which
they had agreed to sell for and the
| quoted price of the wheat.
A more striking instance of the
gambling character of the wheat
deals comes in the squeeze in Chicago
recently. In a few hours the
price advanced IA cents per bushel,
and thereby certain spectators made
fortunes and certain other spectators
lost. There was absolutely no benefit
to those who had real wheat to sell
unless they had it where it could bt
delivered in Chicago that day. II
happened that all the wheat availabl,
had been purchased by the men who
were manipulating the corner, ant
the fellows who had agreed to sci
wheat during September could flint
none to deliver. Therefore, the,
were compelled to settle at the term
Of the purchasers, who, in this case
were the men who had bought all tn
available wheat.
There was no legitimate reason VIII
wheat should have gone up for tina
few hours, and there is no doubt tina
such fluctuations are bad for tn
whole country as whole. The onl
way to prevent gambling of this sol
appears to be to prevent all dealing
in futures. The wheat pit should b
regulated to that extent. 1t is
delicate matter to do that witho,
interfering with the legitimat
transactions, but there is no dOul
that it can be done if there is the wis