The Detroit times., 1917-06-13
eY eAsIL ". MANLY.

grain exchange - nearest the HpFirE
wheat states and next door % the
BY BASIL N. MANLY.
CHICAGO. June ls.-"Futures. or
as they are more often called on
the hoor OF the Minneapolis cham
her OF commerce and Chicago board
OF trade. options" are verbal or
written contracts 20 buy or sell at
some future time
For instance, July wheat One
man on the floor near the July
wheat pit. or acting thru his com
mission man. buys 1000 bushels OF
July wheat az. say SAL per bushel
He pays small portion OF the pur-
chase price. called margin" The
seller contracts TO deliver 10 him
600 bushels OF. whea; In July He
can deliver on the FIRST day or any
time 10 and including the last day
OF July The oayer must take when
delivered and pay the balance OF
tho price over the margin he laid
down al the beginning
or. msn may sell 900 bushels
az July wheat That doesn't neces.
sarily mean that he has even
single bushel 20 sell This man is
literally betting that wheat in July
will be selling for less than tho
future" price quoted today n he
guesses rightly be can buy 1000
bushels then at a lower price and
sell at the higher price ne con.
tracted az. II wheat goes up BY
that time he, OF course. loses the
difference.
September wheat Is that contract
cd for delivery in that month. AT
this time OF the year spectators
are dealing In May. July and Sep
TENDER wheat After June May
wheat is dropped and December
wheat is added
Dealing In futures. commission
men say. is necessary 10 protect
terminal elevator owners and -four
millers; that Il gives these men a
chance 10 hedge on the market
which is constantly nuctuating.
But this much OF grain specula-
ton. while Il may or may not be
necessary. is only a minute part OF
the speculation In futures. To every
legitimate future trade there are
s9e that are nothing but gambling
or prearranged efforts 20 affect the
market price OF cash grain.
The average bushel OF wheat IA
sold at least 100 times on the Min
neapolis chamber OF commerce
Every morning there were up 10
May Is more bushels OF wheat sold
in future trading on the Chicago
board ~ trade than there are bush.
els received during the whole year,
That IL grain gambling betting
on the rise or fall OF the wheat.
One man sells hundreds of thou.
sands OF bushels OF wheat he hasn't
got and which he never expects 10
have. 10 another man who doesn't
want that wheat and never expects
10 get H. That same mythical
wheat IL sold again and again, fore
ing the price up or down.
In the fall. when the farmers are
hanllng wheat 70 market the price
il low Why? How?
Look az September wheat today.
II closed at 81 bushel lower than
May wheat Why? Because in Sep.
TENDER the farmer viii have wheat
10 sell
Today only millers and big ware.
house men have any Along toward
the time when wheat IL being
threshed the milling trust and big
grain buyers will begin selling Sep.
tefnt5rr wi1rat.- -rnen rhey don't buy.
Continued selling OF any commodity
naturally brings down tho price.
Just how many OF these sales are
wash" affairs no one but the
bears sellers. pulling down the
price, know. a wash sale IA no
sale AZ all N ia made openly on
he floor between certain members
OF bear crowd and after the ex-
change closes IL washed of tho
slate But wash sales have a large
effect upon the price To outward
signs they are real sales.
After the price ia down and most
farmers have marketed their wheat
the -four millers and grain eorner-
ers, who have stored away millions
Of bushels in elevators. begin boost