The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1915-01-28

farmers grain fluctuates tremendous
ly and the farmer is the sufferer in the
absence OF a great market in which
he car sell at any hour Of the day and
any day of the year." is to infer of
course that option trading is a guar
antee of stability in prices.
Let us take the crop of 1915 as an
illustration. But before doing so l
wish to affirm that agriculture is the
only great industry in the nation that
is now governed by the natural, nor
NAL law of supply and demand, The
worlds product and the worlds de-
mand, freed from manipulation and
speculation governing the price. We
will deal with wheat at present. The
worlds crop of wheat for 1914 was
less than that of 1913. The price of
wheat should have been as high, or a
little higher.
Now what happened through the
medium of this valuable modern de-
vice." Before harvest, when it was
impossible to know what the harvest
would be, in accord with a very gen
eral annual custom, the spectators
began selling options on wheat for
future delivery at lower than prevail
ing prices, and to the extent of around
Is cents per bushel. The indications
were that they would have forced the
prices down from five to ten cents
more before the farmers would he
ready to market their crops; had II
not been for the wholly unexpected
European war when the same class of
spectators turned bulls" and in the
course of a few days had run the price
up by 80 cents per bushel for future
delivery (now so cents.) This sudden
increase in price was promptly de-
nounced as a crime against the con
sumner, and an investigation demand
ed by congress so that the criminals
might be punished.
Why was 1t not also a crime to
force the price down on the pro-
ducers? may tell in a later article.
Now as to that stability of price
guaranteed by that valuable modern
Device option trading: / note by the
Minneapolis wheat market of January
18th, the following: Near panicky
conditions struck American markets
yesterday, forcing declines Of from
AK to S cents a bushel al all markets.
An enormous rush of selling orders
at Chicago and Minneapolis followed
the report hat the allied feet had
about demolished the Turkish forts of
the Dardennelles."
How many of these orders do you
suppose were sent in by farmers?
A day or two later on some other
rumor, or guess the price jumped 9
cents higher. Then on January 10th
dropped 5 cents on a rumor that o
gress would investigate, etc. and co
it goes from day to day.
But some one will say that it is
not fair to quote a war period.
Admit it; but We have had just as
great and ever greater fluctuations in
time of peace engineered by a Hutch
inson, a Letter or a Patton.
Just one thought in conclusion. II
this option trading is such a valuable
modern device" for marketing agricul-
tural products, why is it that not one
of the other great industries that are
held up as models of efficiency and
success, have ever adopted similar
exchanges or followed similar meth
DDS for the sale of their products?
Imagine the international Harvester
Co, the Steel Trust, the meat packers,
-four millers, or any other trust adopt
ing this valuable modern device" for
the sale of their products.
| submit that no other great in
dustry could survive such a system of
marketing their products one year.
II. L. Loucks.
----9-