THE PRICE OF WHEAT 153 



unparalleled confidence led him to continue operating 

 in adverse conditions, when the supply, which during 

 the first ten months had been below the requirements, 

 reached the usual consumption once more, and prices 

 began to fall. The high prices during the earlier period 

 of Leiter 's operations were not mainly the work of Leiter. 

 The fundamental cause was a shortage in supply, and 

 as long as this continued the operations were successful. 

 The real influence of the manipulation was found in 

 the disorganisation of the wheat market for some ten 

 months with great fluctuations in price, notably in 

 December and May. 



Generally speaking, successful ' ' corners ' ' in wheat are 

 impossible, owing to the magnitude of the purchases 

 which must be made, the impossibility of concealing for 

 long the existence of that syndicate, and finally, because 

 as price goes up enormous supplies are rushed into the 

 market. Thus, if a ''corner" is discovered, and it is 

 found that sufficient wheat is not forthcoming for the 

 settlement of short sales on, say, the Chicago Exchange, 

 big millers at Duluth or Minneapolis dump their large 

 supplies on to the market. They realise high prices, and 

 relieve the situation. They are then able to buy back 

 considerable quantities of their own wheat, which they 

 had sold previously, probably by telegraph. The wheat 

 never leaves their elevators, they are able to make a 

 profit, and in almost all cases break up the attempted 

 "corner." 



(/) Conclusion. Our conclusion, after a somewhat 

 cursory examination of a highly controversial subject, 

 rests in favour of speculation. The net result is a 

 balance of good from dealings in "futures." Though 

 there are certain temporary evils and pernicious 

 practices in connection with such speculation, the most 

 recent tendencies of great price steadiness, of the 

 growing perfection of the speculative machinery, and 



