Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-03-12
Iolua Newspapers
JUST PLAIN GAMBLING.

Correspondence Sioux City tribune
The writer has been deeply interested
in the letters appearing in your paper
recently regarding the maximum price
on oats, written by Mr.. Rumsey, OF
Rumsey & Company, Chicago firm
and Mr.. Kolb OF Holstein, Iowa. IT
would seem. judging from the trend
of their letters, that Mr.. Rumsey was
endeavoring to fan a dying flame to
greater efforts, and that Mr.. Kolb had
possibly lowered about that flame
when it was brighter and had
probably singed his wings somewhat
BY this we mean that we think the day
of the private wire house Is rapidly
drawing to a close and that persons
who have attempted to collect little
easy money and failed will have to look
elsewhere for games Of chance at no
great distant date.
Properly used future trading" is a
great help to the "cash grain man.
Hedging is legitimate in transactins
grain business. However, for the last
six or eight months, corn and oats could
not be satisfactorily hedged, owing to
the uncertain conditions and the high
futures. Last year If a country grain
dealer bought 1000 or 5000 bushels of
corn, If he was a conservative dealer
and did not speculate on his stun, he
either sold it "to arrive Chat is, for
shipment within specified time,) or
else called some private wire house
and sold 1000 or 5000 bushels Of future
delivery. 1t mattered little then whether
he was slow about getting his stuff to
market. Which ever way the market
went he was protected. If the cash corn
went up he made on his cash stuff. If
the cash market went down. he lost
on his cash but profited on his futures.
Last year corn and oats sold at a small
discount or premium over the futures
all year This year contract corn Is
selling on the cash markets at about
1.50 to $1.75. and the May corn closed
today at $1.27. Cash corn f1uctuates at
the rate of 10@20 cents per day, while
the fluctuations in May corn are not
much more than u OK cent. The situa-
ton is not so radical, but much the
same in oats.
You will ask, if the above is true,
Why trading in grain for future de-
livery?" The answer is simple. Com
mission men, spectators and gamblers.
The commission man gets $3.50 for
each 5000 bushel trade made The
Spectator pays $3.50 for each 5000
bushel trade which the commission
man makes for him, and II he is sue
cessful he makes his commission back
and more with it. The gambler pays
$3.50 per 5000 bushel trade and nearly
always this is his minimum expendi-
ture. There are two kinds of specula
big boys, like ]. Ogden
Armour and James Patton, and the
little fellow in the country. Armour and
Patton have their agents all over the
world. They know world conditions
and world supply and requirements.
They know what the world consumes,
what Is available for consumption and
when it is wanted. Even with their
vast knowledge of world conditions
some unforeseen factor, for instance
war, Is likely to upset all their care
fully laid plans. The little speculator
in the country usually bases his plans
on local conditions. II corn crop in his
territory is poor he is pretty apt to be
found on the bull side no matter If the
crop in some other parts of the country
are very good. He observes weather
conditions, the movement Of the stuff
by the farmers and the demand at the
terminal markets, then places his bets
accordingly. The gambler is usually
a man who knows little or nothing OF
the grain business; reads the dope"
scattered broadcast by the private wire
houses, listens to the bunk" passed
out by the private wire house manager
and spends his money accordingly.
Sometimes he wins and makes a good
~ sum of money. So does the follower
Of the ponies" However, if he stays
by the game long enough the COM
mission man is the only one benefited
thereby. II he makes killing on his
first few trades he thinks he can teach
Armour and some of those guys down
at Chicago some new tricks, and he
gets into the game all the harder
Finally his money is shot and he has
learned a lesson. If he loses on his
first trade he says to himself that Just
1 few more chances and I will make
that all back. When I get even again
will quit. Usually he quits when he
goes broke and not until, In the long