The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-07-26
CHAMBER OF
COMMERCE TERMS
By Braateland

To Producers newspaper here is
something which is rather illuminat-
ing while at the same time it is rath-
er instructive. Like the Bull Burglar
there are pet phrases used which are
in the nature Of code of the trade.
Here is verbatim copy from an
authority and it is rather suggestive.
Note carefully the title under which
it comes.
Gambling Contract" One in
which the parties in effect stipulate
that they shall gain or lose upon the
happening of an uncertain event in
which they have no interest except
that arising from the possibility Of
such gain or loss. 153 Pa. Statutes 247.
Gambling contracts may be by bet
or wager which is their simplest
form; by lottery; or they may be dis
guised in the form of a legitimate
transaction, the ordinary form being
by dealing in futures. The validity
Of such contracts depends on wheth
er the intention of the parties at the
inception is to deliver the goods bar
gained for, or to settle on the basis
of a difference in price. (155 ILL. GIT;
So N. Y. 318; Wis. SO, Page 1879.
The course of (speculation) dealing
has given rise to anumber of technic
al terms, some of which are here de-
fined.
Corner" An artificial scarcity
created by holding property off the
market for the extortion of abnorm-
ally high prices. Where the purchases
of any party or parties exceed the
amount of contract grain in regular
warehouses on the last delivery day
of the month, for which such pur-
chases have been made, the grain so
bought is said to be cornered.
Cover" The buying in Of grain
Or stocks to fill short contracts IS
called covering"
Covering shorts. Buying in pro-
perty to fill contracts usually for
future delivery previously made.
Delivery" When stock is brought
to the buyer in exact accordance with
the rules of the stock exchange, it is
called a "good delivery" When
there are irregularities the shares
being of unacceptable issues, or the
rules of the exchange being contra
vened in some particular, the delivery
is pronounced "bad," and the buyer
can appeal to the board. Also when
warehouse receipts for grain are de-
| livered in fulfllment of contracts.
"For a turn" Said of a specula-
tive investment for a small profit on
loss. A quick play or "fyer."
Futures" Buyers of cash pro-
ducts protect themselves against pos
sible loss by selling an agreed
amount for future delivery in sons
general market. Such contracts ara
called Futures" because they do moi
terminate until some designated
month in the future. These transac-
tons pass from hand to hand, ane
may be turned over thousands Of
times in an active market before ma
turity, and this is called dealing il
futures! Nearly all speculative op
erations are in futures.
Hedge" The operation of "hedg
ing" by spectators is practically tn
same as "straddling" though tn
terms are not synonymous. Trader
hedge to avert loss, and straddl
for profit.
Holding the market" Buying
sufficient stock or commodities t
keep the price from declining.
'In sight" Said STOCKS of grain
cotton, coffee or other merchandis
available for immediate use. Grail
stored in private storehouses or hel
| DV pIOuuCSES, 10 IiOe SAS0S~AAS
in the supply Gin sight"
s1nsiders." Those who own a con
trolling Interestingly hCivetiv It 81
trolling interest or an important in
terest in the stocks of concern, o
who are therefore influential in d
recting its affairs.
Investing. buying" This phrase
, generally used in contradistinctlon
buying for speculation, or for quic
turn in the market. 1t is understoo
: to mean buying to hold for consle
4 cradle time.
"Long." One who has propert
: bought in anticipation of a rise
t price. Hence, for trader to b
: slong" of stocks of grain presuE
: poses him to be "Bull." Also use
e adjectively.
: "Long interest" The aggrega'
e amount of investment holdings
49,, cyoc1,lotiuo market