154 WHEAT PRODUCTION IN NEW ZEALAND 



of the knowledge of the conditions of supply and 

 demand, are operating to eliminate these admitted evils. 

 The very magnitude of the transactions and the methods 

 employed necessitate the most scrupulous honesty on 

 the part of operators, not that these speculators are a 

 class notorious for their probity. The speculator himself 

 is a man of unusual qualities, for his real economic 

 function is practically the manager and director of the 

 world's wheat movement. If, indeed, he be not a man 

 eminently clear-headed and practical, with a vision as 

 keen and penetrating as that of the prophets of old, he 

 cannot continue long in his position of importance; for 

 the stupendous undertakings which he often assumes 

 are possible only with a boldness and a brilliancy of 

 imagination possessed by few. 



Such a discussion may appear a digression from the 

 real question at issue. We commenced with the intention 

 of investigating the factors which determine the price 

 of wheat. These were mainly two sets, those operating 

 from the demand side and those from the supply side. 

 But it is not enough to consider the nature of these 

 factors. The method of their operation must be con- 

 sidered. The study of the way in which these sets of 

 factors are brought together is of no less importance 

 than the discussion of the factors themselves. Now, it 

 is just here where the importance of speculation attracts 

 attention, and it is obvious that, without a consideration 

 of this subject, our discussion on the determination of 

 the price of wheat would be quite incomplete. We are 

 therefore justified in going into the study of the matter 

 in detail. Moreover, the study is perhaps one of the 

 most fascinating in modern economics, as well as one 

 around which much controversy has raged, and is still 

 carried on. 



