Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-05-12
SETTLEMENT PRICE
FIXED AT So. 18
Millions Of Bushels Contracted For
Sale Which Do Not Exist-Aetion
Of Chicago Board viii Not Stop
Speculation in Futures-Whsat For
Immediate Consumption Must Be
Bought From Those Who have, Grain.


board of trade de-yesterday as a specu-
lative option. was fixed at s3.1s a
bushel today.
The price committee, Of which James
A. Patten was chairman, met an hour
before the opening of the board and
fixed upon $3.1s as the proper price for
tablished by competitive bidding at the
close yesterday.
There are in Chicago public elevators
'219.O00 bushels Of wheat of the grade
required for delivery on contracts. A
rough estimate places the amount con-
tracted for at q hundred times thar
quantity. Thus had not the board in
tervened % per cent OF the contracts
necessarily would have been settled at
any price, even at SO . bushsl de-
manded by holders Of the contracts, in
trade parlance known as 'lonss." They
held the sellers or Shorts" absolutely
at their mercy.
Differs From Corner.
The situation differed from a corner
in that the holders were scattered,
whereas as in manipulated corner tho
supply u congested in the hands of an
Individual or group OF speculators act
ing as one man. AS matter of fact
the allied governments. thru their food
commissioners, held natural corner.
At one time they were "long" 29,0O0,-
900 bushels Of wheat in the Chicago
market. Much was closed out some
time ago. They wanted the actual
grain. but finding that the bottoms
necessary to carry it abroad were not
available, they reduced their holdings
and by force Of circumstances took q
handsome speculative profit. They
contracted for delivery Of further
wheat in July and September and the
status Of their deals in these months
is not definitely known, save that they
already have a big profit on paper in
both options.
Does Not Stop Speculation.
The elimination Of May contracts
by no means eliminates speculation in
grain. The action of the board. while
not interfering with freedom of con-
tracts, compels those requiring wheat
for Immediate consumption to make
purchases from farmers or grain deal
ers rather than thru the medium of q
contract for future delivery on the floor
Of the exchange.
Mr.. Patten was asked what action
was contemplated to prevent a repeti-
ton in July Of the May situation.
THAT remains for the future to de-
cide," he said.
mr. ,opio Nf Y,,I11 MI 40
little disturbed by the price fixing Of
May. July opened u to 3A cents low
er at s2.49h to $2.46, and September.
1 to cents down at s2.l6 to 32.14.
other Options Soar.
The decision Of the board to termi-
nate trading in May wheat and the
fixing of the price Of that option at
$3.1s by a committee which met this
morning had practically no effect on
speculation.
For weeks new business in May
wheat had been comparatively light.
When trading was resumed today
speculation turned entirely to future
options, July shooting up Is cents and
September IAN cents from the early
bottom. The action Of the board In
no way applied to these options and
trading IN them was active and few:
erish.
July sold to 1881 and September to
$2.2sh. In effect the fixing Of the May
price was to save shorts from further
losses and to prevent longs, among
them representatives of the allied gov
ernments, from attaining further pro-
fits. The settlement price, however.
permits Of handsome gains on wheat
bought even two weeks ago.
The most sensational advance in the
history Of the present crop II not In
history, marked the trade today when
net gain. ranging from 27 to 30 cents
were scored in the July and, Septem-
Der options. 5
July wheat closed yesterday at 32.le.
Today It closed at $2.73 to 32.75. Sep
tember, which closed Friday at $3.14,
closed with bids ranging from $2.l4 TO-
$2.46.
Aetien a "Patriotie Duty
The resolution Of the board refers
to the action Of the directors as a
patriotic duty" and remarks that fur
ther trading In May might "unduly
stimulate prices" There was no prom .
ise that the May situation would not
be repeated In July or even In Sep-
tember.
The resolution adopted by the board
read: az 4 q = s
There IL comparatively little wheat
IN CHICAGO or territory ntributssy
~ E tSS 81