The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1915-04-01
OUR GRAIN
WATERFOWL, S. ID.
Register:

llItlt 10 ~ A'SiNAAAh'Nr
sudden and extreme changes in price
of farm products, and more especially
of wheat. 1t is a worlds crop with
the annual need well known, and for
no other industry are the statistics for
production so carefully gathered and
given to the public in advance OF
marketing. There should be no great
surprises as the harvest Is a daily
continuous one. In the northern hem-
isphere beginning at the equator in
March and marching north for seven
or eight months; and for the southern
hemisphere beginning in September
and marching south for five months.
Our own country is a fair example OF
what Is being done in So other coun-
tries reporting TO the international
Institute of Agriculture at Rome,
Italy; which in turn gives the infor-
nation to each nation.
In almost every township there is
an intelligent correspondent whose
duty it Is to report to the Department
of Agriculture every phase of produc-
ton, condition of soil, acreage seeded,
progress of growth, prospects of yield
t~hreshers reports and final reports.
In other industries if demand falls
off, or prices decline below the profit
line, they can curtail or stop produc-
ton. Not so the farmer, for after
seeding he must go on to harvest re-
gardless of prospects or prices. We
have shown up a few of the many
exaggerated reports-we cannot call
them reasons-for the sudden changes
in options for future delivery given by
the hysterical representatives of the
few who control our grain exchanges.
bardment of the Dardenneles has fur
nished several, and will several more.
Now comes the weevil, chinch bug
and the Hessian fly, or a blessed rain
somewhere, a prolonged spell of sun
shine, a scarcity, or an abundance of
snow, yes and the melting thereof. All
these and many more usual and I'M
usual weather conditions are used to
stir the Pit"
The southern hemisphere is a fer
tile field for "Pit scares," and has fig
ured frequently Of late as the cause
of viloent changes in price.
Now for the facts. The whole south
ern hemisphere grows less than s per
cent of the worlds crop of wheat.
Very little is grown for export, except
by Argentina and Australia. Aus
tralia's annual surplus for export is
about so, 000, 900 and Argentina about
100, 900, 900. Australia will have little if
any for export, and may have to i'm
port. Argentina will have about 120,-
000,0 600 for export. For the whole
southern hemisphere there will, be 49,
000,0 600 less than the average for ex-
port. That is the official report of the
Department of Agriculture. Why these
many imaginative, or fictitious daily
reports? A lively market Is the gam
blers' harvest, and the "Pit Bugs"
are easily excited. A weak staff to
lean on.
The three principle sources of gam
bling are cards, Roulette and wheat,
of which the latter is chief. In the
32nd annual report of the Minneapolis
Chamber of Commerce page 10 we
find that the annual fluctuations in
wheat for a period of II years was;-l
Minneapolis May, high and low from
IL cents per bushel to SO. In Chicago
from 13 to s1.Os an average Of %
cents. For December in Minneapolis
from 10 to 50, an average of "a cents. |
In Chicago from IL to 40, an average
Of % cents. The same is true of
other grain subject to future option
trading. only to a less extent, because
less traded in. It is claimed, and
from my own investigation I think 1t
a conservative estimate, that the loss |
of the farmer, because Of this future
trading is at least 10 cents per bushel.
No other industry in the nation could
live under such conditions, and none
would try.
What Is the remedy? The organized
farmers say abolish all trading in flu
lures except where an actual delivery
Of grain is contemplated.
have tried thus far to separate the
legitimate from the illegitimate; but
representatives of the grain exchanges
insist that they cannot handle our
grain without this most important
link in the chain. They refuse to per-
NIT any change, and assume full re-
sponsibility. therefore in future | will
accept future trading In wheat as the
vital link in the present system of
handling our grain In their grain ex-
changes.
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