MARKETING 141 



world relation is probably the most typical. A 

 part of the exchange dealing with wheat is known 

 as the wheat pit. The big wheat and flour men 

 as well as the brokers dealing there are in close 

 touch with all the wheat countries of the world. 

 During the critical period preceding and during 

 the harvest season, telegraphic reports give them 

 detailed accounts of the wheat outlook. They 

 are informed of approaching storms that may 

 injure the crop. During all the growing season 

 influences which tend to injure or improve the 

 wheat are constantly reported. The price on the 

 exchange is thus related not only to the visible 

 supply, the stores of known wheat, but also to 

 general world prospects for the future. Such a 

 detail as the matter of prospective change in 

 ocean freight rates to Liverpool, Constantinople, 

 or Hong Kong will cause a price fluctuation. The 

 dealers in the pit who are hoping for advance in 

 prices are known as bulls, those who wish for de- 

 cline as bears. If a man has bought wheat and 

 desires to sell he naturally seeks an advance, 

 hence he joins the bulls. On the other hand, a 

 man, provided he puts up a sum of money to 

 guarantee the contract, may sell without actually 

 owning any wheat. Then he may sell a quantity 

 of wheat at a high price when he expects the 

 market to break or decline. This he hopes to 

 buy back later at a lower price. Such a deal 



