34 THE HIGH COST OF LIVING 



it is the same practice as that pursued by the egg 

 and produce exchanges of Chicago and Elgin, HI., 

 and other cities. The price is made artificially low 

 by stock-market quotations during the season of the 

 summer, and then in the fall and winter it is arti- 

 ficially raised against the consumer. 



Why, it may be asked, does not the farmer hold 

 his wheat for the inevitable rise, if this is the prac- 

 tice ? In the first place, the farmer has to store his 

 wheat while waiting for the rise. And the ware- 

 houses are owned or controlled by the same interests 

 that control the grain exchanges. And they work 

 in sympathy with the great milling establishments. 

 The millers will not buy of the farmers direct. ''Un- 

 less you belong to the Board of Trade" (the grain 

 exchange), the milling houses say to the farmers 

 who have organized their own co-operative elevators, 

 "we will not buy your wheat." 



In addition, the cost of storage is so high and the 

 railroad and terminal facihties are so inadequate 

 and uncertain that the farmer is often forced to sell 

 on the buyers' terms. He cannot hold on for six 

 months, for he has to meet his loans to the bank. 

 The farmer is usually a borrower. The banks which 

 advance him money on his wheat, cattle, and corn 

 are largely under the control of or are influenced by 

 the same men who own the warehouses, the mills, 

 and operate on the food exchanges. And a mere 

 suggestion from the bank is enough to frighten the 



