Omaha daily bee., 1911-10-09
GRAIN DEALERS
ARE GATHERING
Continued from First PaseJ

| Ralph Reckell. an expert In the trade,
has written.
Some farmers. and great many city
folk. look upon all grain commission
men purely as spectators. but the same
writer Just quoted insists that good grain
traders must be competent men. He
says There must be preparation for q
/ speculative vocation IN the same thorough
manner that the clergyman studies his
theology. or the physician his anatomy,
and those without knowledge who attempt
to reap a livelihood from fluctuating
grain prices are quack spectators.
! counterfeit and a curse" Which would
seem TO be borne out by the fact that
the best men In any grain exchange, as
rule. are those who have worked up
! by actual experience from the minor
| positions In the offices Of the grain
dealers.
From the Grain Paper.
Along the same line, and giving an
inside view Of the position OF the grain
exchange operator on his own ground.
lie the following interesting extract from
an article In the National Hay and Grain
Reporter. the organ OF the association:
Public opinion has failed thus far, In
the study Of grain marketing, to com
prehend the principle that Il Is the func-
ton OF the Spectator 10 take a reasonable
chance At Washington, when the anti
| option bills we're being considered in
committee. representatives and senators
with uniformity OF thought propounded
the question. II the Spectator takes the
hedge Of the grain dealer or miller, thus
protecting grain purchases or sales, and
| flour purchases OF sales who protects the
| speculator7"
THE Spectator asks for no protection.
It's his business, based upon his expert
| enco, his training his knowledge Of sup
| ply and demand. and the capital at his
command. 20 take the chance the market
ing OF grain affords. II the Spectator
was absolutely protected In his trading
as the grain dealer or the miller, then
there would be no speculation, for II Is
not speculation TO hedge grain or flour
| It's insurance.
THE producer takes his chance when
he plants his grain. II he was absolutely
certain that a specified amount of grain
could be produced per acre. and that
It could be sold at a fixed sum per bushel,
then there would be no speculation in
production; but the laws Of nature, which
make production uncertain. make the
grain business. by its very nature,
speculative proposition
As to Speculation.
| Speculation, as Il is commonly under
stood in the grain business, removes the
business just as far as possible from the
realms OF uncertainty and reduces fluc-
tuatlons in grain prices to the minimum,
The Spectator seeks no protector, de-
slres no protection. could get no protec-
ton and still be a Spectator Speculation
is the natural desire OF a normal man
who is not afraid to take reasonable
chance"
And on the subject OF futures" about
which many people have hazy ideas 1t
will help TO a better understanding OF
this phase of the grain mans work to
quote President David r. Forgan of the
National City bank. Chicago.
Warehouse receipts for grain, or any
thing else that finally becomes human
food. are in my opinion the best possible
collateral for bank loans. have seen
the time more than once when high class
stocks and bonds. and even government
bonds. could not be readily sold, but
have never seen the time, nor do ever
expect to see It, when anything that has
to be eaten could not be sold. The ware
house receipts therefore constitute
collateral which is always available for
tho payment OF debts.
Present Methods satisfactory.
Furthermore, II the grain or provi-
sions represented by warehouse receipts
are already sold for future delivery. that
fact adds a great element Of strength TO
the loan, because there is a third party
obligated to take the grain at a certain
time for a given price, The present
method. therefore. OF carriers OF grain OF
provisions selling them for future deliv-
cry is a highly satisfactory one to the
banks whose money is loaned 10 the car
riers. The sale for future delivery Is the
final link In the chain that makes such
loans the best I'm the world"
So Omaha will have the honor OF enter
tanning a host OF the eleverest business
men in the country when the grain deal
ers come 10 town. They Will represent
many states. for the Grain Dealers Ma
tional association has affiliated with II
a good many of the state associations of
the country. Several OF these win send
DELEGATIONS large enough 10 warrant the
ohartering OF special cars to bring them
10 omaha. At Chicago the delegates
from various sections will meet ana Will
take possession OF two special trains,
made up .solidly of Pullmans, in which
they will travel to this city.
The present national officers of the
grain dealers are; President, e. M.
Wayne OF Delavan, H.. first vice presi-
dent. Ely Bernay Of New York; second
vice president. Il, r. Elliott OF Muncle,
Ind; secretary-treasurer, John It. Cour-
cler OF Toledo; chairman executive COM
mittee, j. W. McCord OF Columbus. o.
Omaha has sixteen members Of the ma