THE PRICE OF WHEAT 149 
producer, and consumer alike. Speculation alone makes 
hedging transactions possible. Fluctuations in prices 
are lessened, the short seller being the most potent 
influence in preventing wide fluctuations in price, for 
he ‘‘keeps prices down by short sales, and then keeps 
them strong by his covering purchases.’’ 
(d) The Assumption of Risks by the Speculative 
Class—‘‘The manner in which trade risks are shifted 
to the speculative class is two-fold. First, through the 
existence of a continuous market, and secondly, through 
hedging sales. The former is due to a general change 
in trade conditions, the latter is a special device for 
insurance against loss.’’* 
The never ceasing opportunities for trade arising from 
market fluctuations, give rise to the continuous market, 
the existence of which is responsible for all the machinery 
of modern speculation, the bulls and the bears, the buyers 
and sellers, making new contracts with every indication 
of changed conditions of demand and supply. The bulls 
stand ready to purchase wheat at the current price and 
assume the risk of a fall, in the hope that a gain may 
be made by a rise im price, and for this purpose, they 
‘‘bull’’ the market by purchasing. The bears, on the 
other hand, stand ready to sell wheat at the current price 
for present delivery, or at a fixed price for delivery at 
a given future date. The essence of ‘‘bear’’ speculation 
is that the risk of a rise in price is assumed in the hope 
that a gain may be made from a fall im price. 
Now the operations of these speculators are continuous, 
and into the market may enter at any time the merchant, 
producer, or manufacturer, to make such contracts as 
are necessary in his business. Here there is a fixed price 
for the delivery of goods of various qualities at various 
times. It may be said that this buying of wheat for 
*Emery, in ‘‘The Economie Journal,’’ 1899. Page 46. 
