250 THE BOOK OP WHEAT 



great corner was that of Joseph in Egypt. He bought grain 

 outright. This was the only type of corner that could be effected 

 before the advent of the modern speculative market. The appear- 

 ance f the world market has made impossible the perfect con- 

 trol of the whole supply of actual wheat. Even partial control is 

 possible only under very unusual and favorable conditions. 

 Neither can any great or extended control over local supply bo 

 maintained, on account of the ease and rapidity with which 

 wheat can be transported to any market. 



The speculative corner arose with the practice of selling short. 

 This is not a corner of the world supply of wheat, but only of 

 wheat for delivery at a particular time and place. Such a cor- 

 ner is always run by the bulls, who effect the overselling of the 

 market by securing control of local supplies and by inducing 

 short-selling. The result is that there is no wheat with which 

 to cover short-sales. Such a corner is absolutely effective, for 

 the short sellers must cover their contracts before the end of 

 the month, or default. It is not without its difficulties, how- 

 ever. In order that the shorts can move no wheat for delivery 

 except on the terms of the cornerer, he must buy at rising 

 prices all that is offered. Almost invariably the amount that 

 can be offered at the increased prices is more than was calcu- 

 lated. Corners in Chicago have beeft broken by the big Minne- 

 sota millers who, at the last moment, have found it profitable 

 to sell their large stores by telegraph. After the corners were 

 broken, they could buy back most of this wheat before it had 

 left their elevators. 



After the supply has been successfully cornered the hardest 

 part of the game is still to be played. The grain accumulated 

 in cornering the supply must be disposed of. This is what 

 Hutchinson, the first great cornerer, called "getting rid of the 

 corpse." High prices were paid for enormous quantities of 

 wheat that must be sold on a continually falling market, for 

 after the cornerer settles with the shorts the price falls at 

 once. He must squeeze enough out of the shorts to make him- 

 self whole in selling his own accumulation at the lower price. 

 In such a corner wheat in general does not rise in price, but 

 only wheat for delivery at a particular time in that market 

 where the corner was run. 



