MARKETING 235 



must keep posted on general conditions. It is not suf- 

 ficient to know that there is a crop shortage in his own 

 state, or, on the other hand, one more than abundant. 

 The probabilities of the domestic consumptive demand 

 should be familiar ; to the one handling grain, some- 

 thing of reserves carried over from a preceding crop ; 

 conditions abroad, as to probable requirements for 

 feed purposes ; crop outlook, etc. The export demand 

 and the foreign markets, while not so important in 

 corn as in wheat, are always influential in shaping home 

 prices, except in seasons of crop shortage (such as 

 1901-2), when this is less pronounced. 



Selling "Short" in Speculative Market — The spec- 

 ulative end of the corn market is made up very largely 

 of "short sales," by bearish operators. These believe 

 they can sell the contract grade at the then existing 

 market price, even though they do not possess it, with a 

 view of subsequently, say within sixty or ninety days, 

 buying it in lower, on these time contracts, and keep 

 the difference as profit. Short selling has been de- 

 cried for many years, and the subject of frequent hot 

 contests, not only in trade channels, but in state and 

 national legislatures. Much may be said on both sides 

 of this great question. 



While in nowise standing sponsor for the spec- 

 ulators, it is proper here to state the attitude of so 

 responsible an organization as the Chicago board of 

 trade. This can best be epitomized in a brief para- 

 graph from the report of a special committee, several 

 years ago appointed by the board of directors of the 

 Chicago board of trade to investigate a proposition to 

 change the method of doing business to a system popu- 

 larly termed spot cash, eliminating entirely buying and 

 selling "futures." 



"By the form of contract under which members of the 

 board of trade buy and sell property for future delivery, either 



