REFERENCES 361 



9. Discuss in detail the past organization of the grain trade under the three 

 following topics: (1) Evolution of organised exchanges (weighing, 

 inspection, grading, cash grain, to-arrive grain, future trading, short 

 selling, speculation and manipulation, corners and rules on Hutchin- 

 son, Leiter, and Pattern corners hedging speculation and the wide 

 market question, delivery notices, pit scalpers, "phantom" grain ques- 

 tions, effect of speculation on price, cost of future trading, volume of 

 future trading, the bucket-shop fight, present condition of exchanges). 



(2) Evolution of terminal elevators (early terminal storage, relation to 

 railroads, early evils of system, early regulation, Hepburn Act and its 

 effects, present situation as regards railroads and terminal elevators). 



(3) Evolution of farmers' elevators (first and second beginnings, '"reg- 

 ular" houses, price fixing, Rockwell Iowa in 1889, "penalty clause," 

 struggle of farmers to help themselves, aid from Chicago Board of Trade 

 members, outcome, present commercial methods of farmers' elevators, 

 problem of dockage and its fundamental solution). 



QUESTIONS SUGGESTED BY THE TEXT 



1. Compare the statements of Liebig and Sir William Crookes as to soil 



exhaustion, and criticise the position taken by each. What error, if 

 any, did each make? 



2. Compare the costs of marketing grain, through the organized exchanges, 



with the costs of marketing hay (without organized exchanges). 



3. Can speculation in grain be limited to those who are members of the grain 



trade? 



4. Is the cost of hedging-insurance too much? 



5. Secure a copy of the annual report and of the rules of any leading grain 



exchange, and study them carefully. Are these rules fair to both 

 farmers and consumers? Are the membership requirements too high? 



6. Is the grain exchange an "open market"? Is it a competitive market? 



REFERENCES 



1. See Annual Reports issued by Secretaries of the following grain 

 exchanges : 



Chicago Board of Trade St. Louis Merchants' Exchange 



Minneapolis Chamber of Commerce Milwaukee Chamber of Commerce 



Winnipeg Grain Exchange Toledo Produce Exchange 



Duluth Board of Trade Baltimore Chamber of Commerce 



Omaha Grain Exchange New York Produce Exchange 

 Kansas City Board of Trade 



2. On Weighing, Inspection, Grading, see following Reports : 



Annual Reports, State Weighmasters' Department, St. Paul, Minnesota. 



Annual Reports, State Grain Inspection Department, St. Paul, Minnesota. 



Annual Reports, Illinois Railroad and Warehouse Commission, Spring- 

 field, Illinois. 



Annual Reports, Missouri State Grain Inspector, Kansas City, Missouri. 



Bulletins on Federal Grain Supervision, issued by United States Bureau 

 of Markets, Washington, D. C. 



3. Government Publications : 



(1) Prices of wheat to producers in Kansas, etc., 63 Cong. 3 Sess. House 

 Doc. 1271. 



(2) Report of State Grain Commissioners. Bismarck, North Dakota, 

 Public Document No. 26 (1910). 



