180 THE FARMER AS A BUSINESS MAN. 



ble prices. To avoid attracting attention by very large pur- 

 chases by one party, a large number of brokers are employed. 

 This is continued as long as possible, and it is evident that 

 the farmers who thus part with their wheat are not benefited. 

 At last the time comes when it is evident that some one is 

 manipulating the market, and then comes a wild rush to 

 break the price by pouring wheat into Chicago in such quan- 

 tities that the bulls can not raise money to take and pay for it. 

 Whichever party wins, the result is an enormous accumulation 

 of wlieat in the Chicago market, very far in excess of local 

 requirements. When the day of settlement arrives, the deal 

 closes, and all their accumulated wheat is thrown upon the 

 market, to get rid of the interest, storage, and insurance charges 

 which are eating it up. This closes the usual outlet to farm- 

 ers who still retain their wheat, and the product remain.^ 

 unsalable, except at rates so low that speculators see that it 

 will be safe to buy and hold. The only farmers wlio have 

 made money by the speculative movement are those who were 

 wise enough to sell during the period elapsing after the attempt 

 to make a corner becomes evident, and before tlje market 

 breaks, or the day of settlement arrives. As farmers are 

 themselves very prone to speculate, large numbers will cer- 

 tainly refuse to sell when the product is at its higliest, holding 

 on for a still further advance. As most attempts to corner 

 markets fail, there is almost sure to come, some morning, the 

 announcement that the operators for a rise have been unable 

 to fulfil their contracts, and in a twinkling the whole edifice of 

 prosperity is gone. While the farmer has been imagining 

 himself rich, he has probably neglected his business to watch 

 the market, and very likely incurred expenditures or obliga- 

 tions beyond his real means. He will be fortunate if he has 

 not also acquired bad habits which will follow him through 

 life. Nothing is more demoralizing than the feverish excite- 

 ment of speculation. 



One of the leading demands of the Grange is a prohibition 

 tax on speculative dealings in farm products. It is an exceed- 

 ingly difficult problem to deal with, since the speculative 

 contracts do not, or need not, ililFer at all in form from legiti- 



