17S THE FARMER AS A BUSINESS MAN. 



l)rices at once collapse. In such cases payment of any differ- 

 ence in value is seldom accepted, as the object is to supply the 

 commodity in such quantities that the bulls can not raise the 

 money to pay for it, when, of course, they fail, and the corner 

 is broken in that way. Corners seldom succeed, but every few 

 years some wealthy combination of speculators attempts it — 

 almost invariably with disastrous results to themselves. Spec- 

 ulation, however, is continuous in the leading farm products, 

 and the contest between bulls and bears goes on forever. This 

 speculative business is conducted in public, after the manner 

 of an auction. The rooms where the business is transacted 

 are called "exchanges," and at a regular hour on each business 

 day an official "caller " calls off, one by one, the list of com- 

 modities dealt in on that exchange, and pauses for members to 

 offer to buy or sell. None but members are admitted to trade 

 on the exchange, and these must be known to be responsible. 

 BVilure to comply with any contract thus made forfeits mem- 

 bership in the exchange. The business is not commonly 

 transacted by the principals to the transaction, wIjo usually do 

 not wish to be known. The actual trading is done by a class 

 of men called " brokers," who receive orders to buy or sell the 

 commodity, taking on deposit a sufficient sum to protect them- 

 selves against loss. This deposit is called a " margin." The 

 ordinary fluctuations of leading commodities being small, the 

 deposit of a small margin will enable the speculator to pur- 

 chase a large quantity of the commodity. The profit to the 

 brokers is their commission on sales and purchases, and it is 

 the custom of many of them to flood the country with circu- 

 lars tempting men of small means to attempt to get rich 

 suddenly by speculating through them on the exchanges. 

 The order is given, and the deposit made, and notice is at once 

 received that the broker has bought so many bushels of wheat, 

 or barrels of pork, or bales of cotton, for account of the one 

 ordering, the right being reserved to call for more margin 

 should the market require it, in default of which the com- 

 modity may be sold. If the market goes right, the new 

 speculator makes money. If it goes wrong, he loses his 

 margin. The broker always protects himself by selling out 

 before the margin is exhausted. 



