THE PRICE OF WHEAT 145 
in a market which was world-wide, and consequently 
the risks which the trader assumed were no longer of 
local origin, but were caused by changes in world-wide 
conditions. The trader could not now undertake these 
risks under the new conditions. Just as the producer 
had handed over to him the assumption of trading risks, 
so the trader now delegates to a new class the assumption 
of these increasing risks. This class is composed of the 
speculators as distinct from producers and exchangers. 
Thus the development of world-wide markets gave rise 
to modern organised speculation, which is found only 
in commodities marketed under such conditions. More- 
over, the machinery of speculation is limited to com- 
modities of an uncertain production which are widely 
demanded and gradable. Absence of serious hindrances 
to free competition is a further requisite. Thus monopoly 
control of an article would prevent the operation of 
speculation in the market. Brief consideration will 
~ show that all these conditions are found in the market 
for wheat which is eminently favourable to the operation 
of speculation. Indeed, it is one of the markets where 
the machinery of speculation is most highly developed. 
The practice of dealings in ‘‘futures’’ is the most 
important feature of modern organised speculation. In 
the market for wheat are found all the conditions 
necessary for the development of ‘‘future dealings.’ 
These conditions are :— ~ 
(1) The goods are sold by standard grades. 
(2) Delivery of the goods is at stated and regularly 
recurring intervals. 
(3) The speculative dealers are interested merely 
in the ‘‘differences.’’ They do not generally 
buy the commodities for use themselves. 
(4) There are clearing-houses in each market, and 
periodical settlements, and an association com- 
prised of operators on the market. 
(5) The market is utilised for hedging transactions. 
